29 Oct Credit Life and Disability Insurance…Still Valuable to the Right Buyer
Is credit life insurance and disability insurance even worth offering anymore? What are some tips to sell it in today’s consumer environment?
Let’s take a closer look at how this nearly forgotten product can still have a place on the F&I menu…
Understand all the ways this product serves to protect the buyer. It’s not enough to try to scare the buyer into thinking they must have this coverage…focus on the many benefits of having it. It’s all about the WHY, not the HOW. Paint the picture, share a story of another buyer who was glad they had the coverage
Ask the right questions – It should go without saying that if you are not asking a TON of questions throughout the process, you are leaving money on the table. But for these products, the questions are a bit unique and require a little bit of courage to ask them.
Here are common questions to see if there is value for the buyer…
- “With a loan balance of $35,000 for this truck, I assume you have cash reserves to make the payment if something were to happen to either of you on the job?”
This helps paint the picture and gets the buyer thinking about what would happen if either of them was actually hurt on the job. How would that payment get made with all the other monthly expenses they have?
- “Do you have any insurance policies in place that will pay off your debts in case something was to happen to you? Would you have enough to pay the balance of this truck loan if either of you were to pass?”
If you ask with sincerity and are transparent about why you are asking, there is a decent chance they will take the coverage if it is a nominal amount to add in. After all, an extra $15-25 per month to know the balance won’t come out of an existing insurance payout may be money well spent.
Assume nothing. If your dealership is able to offer it, offer it to everyone. If they belong to a credit union, you know they will offer it. The buyer making $100k a year may have a huge family, tuition bills, and more than a few credit cards. He may need that payment protection more than the lady making half that with no debt.
Credit life and disability insurance is not a dead product though some may think it is. It is worth offering if your state allows it. It’s profit that can add up even if it only comes in on 5-15% of your deals.