Key Man Policy
Step one:
Read this article
http://www.entrepreneur.com/article/56068
Key Man Policy gives you many options for the client to protect their business.
1. Premium is paid through the business
2. Lower years mean lower cost so you can carry a higher face amount.
ie : 500k for 10 years rather than 250 for 20 - Most small businesses owners are usually not the key person after 10 to 15 years.
3. If the business dissolves then the client can keep the insurance because the key man was the one who was medically qualified.
4. If they do not have a personal policy for their family this opens up a great discussion.
5. If they have a personal policy this opens up a great discussion to save them money. Because they can potentially lower their personal policy or better yet replace their coverage with ours and have the business insurance.
Step two:
How to start the conversation.
Simple start - Hey "Mr. or Mrs. business owner" what happens to your business if you die?
Does your business generate income for your family?
Do you have a plan to replace that income for your family if the business suffers because of your death?
Have you ever heard of a Key Man policy?
They will either answer no, yes, or whats that?
If they say no - lets sit together so I can explain the importance and how in the long run it can save you potentially 1200 a year. (that depends on if they have current life insurance)
If they say yes - excellent, do you have a key man policy in place to protect this asset you have built?
Do you mind if I can ask you a question?
They answer in the affirmative then you can go two routes.
1. Can I compete with your current policy?
2. Do you have a personal plan in place?
If they say whats that? Then you get a chance to set an appointment to chat with them and show them the need of this to protect their asset.
Common questions come up.
1. What if I die who gets the money.
The beneficiary is the company
2. So what is this money used for if I die?
a. The family can use this money to make the business lucrative to sell because it will be cash rich. Cash is king especially in business.
b. The family can use this money to hire a manager to run the business so that income is still coming in.
c. The family can pay all the bills and employees and vendors so that the company doesn't go bankrupt.
d. The family can close the business, pay off all of the debt, and have the cash.
3. Why do I need personal insurance then?
This is where you get to really help the family. Because the company may not be run that well and may be steeped in debt so that the key man would only cover those debts and the family would still need the income that the owner's business produced. So you can really introduce the aspect of our theory. What if you die to young, what if you live to long.
Ask your friends "Who do you know that has a business?"
Ask business owners who they know that owns businesses.
It gives you options for generating new names and numbers and contact points in your community.
Read this article
http://www.entrepreneur.com/article/56068
Key Man Policy gives you many options for the client to protect their business.
1. Premium is paid through the business
2. Lower years mean lower cost so you can carry a higher face amount.
ie : 500k for 10 years rather than 250 for 20 - Most small businesses owners are usually not the key person after 10 to 15 years.
3. If the business dissolves then the client can keep the insurance because the key man was the one who was medically qualified.
4. If they do not have a personal policy for their family this opens up a great discussion.
5. If they have a personal policy this opens up a great discussion to save them money. Because they can potentially lower their personal policy or better yet replace their coverage with ours and have the business insurance.
Step two:
How to start the conversation.
Simple start - Hey "Mr. or Mrs. business owner" what happens to your business if you die?
Does your business generate income for your family?
Do you have a plan to replace that income for your family if the business suffers because of your death?
Have you ever heard of a Key Man policy?
They will either answer no, yes, or whats that?
If they say no - lets sit together so I can explain the importance and how in the long run it can save you potentially 1200 a year. (that depends on if they have current life insurance)
If they say yes - excellent, do you have a key man policy in place to protect this asset you have built?
Do you mind if I can ask you a question?
They answer in the affirmative then you can go two routes.
1. Can I compete with your current policy?
2. Do you have a personal plan in place?
If they say whats that? Then you get a chance to set an appointment to chat with them and show them the need of this to protect their asset.
Common questions come up.
1. What if I die who gets the money.
The beneficiary is the company
2. So what is this money used for if I die?
a. The family can use this money to make the business lucrative to sell because it will be cash rich. Cash is king especially in business.
b. The family can use this money to hire a manager to run the business so that income is still coming in.
c. The family can pay all the bills and employees and vendors so that the company doesn't go bankrupt.
d. The family can close the business, pay off all of the debt, and have the cash.
3. Why do I need personal insurance then?
This is where you get to really help the family. Because the company may not be run that well and may be steeped in debt so that the key man would only cover those debts and the family would still need the income that the owner's business produced. So you can really introduce the aspect of our theory. What if you die to young, what if you live to long.
Ask your friends "Who do you know that has a business?"
Ask business owners who they know that owns businesses.
It gives you options for generating new names and numbers and contact points in your community.