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Eliminate Jargon When Selling Life Insurance

You have decided it is time to get a new car. Cars are very expensive, and you want to make sure you get the right one. After all, an uninformed consumer often makes wrong or poor decisions; actions that can be very costly.

You research online, go to the bookstore for a car magazine, or do both. You are looking for a car with certain characteristics, including high initial quality. With proper maintenance (park in a garage, drive in a good climate, average less than 15,000 miles a year), the car should last for at least 100,000 miles or more. Certainly, you do not want to make a mistake and buy the wrong car. You also don’t want to get confused by the car dealer’s jargon, frequently known as “car lot lingo.”

When you consider the purchase, or have purchased a particular car, have you noticed how many of the same model you see while you are driving? We generally want social acceptance, which, in this case, is seeing that a lot of people are driving what I am are driving.

Consider if you are a prospective client meeting with a life or annuity insurance agent for the first time. Since you are not familiar with insurance, what can you do to avoid making a bad or poor choice of insurance carriers, or buying a policy that does not meet your needs?

Unfortunately, an agent using jargon may make you more confused. Indeed, that would not be their intention. Sometimes, even true statements can make you wonder what they mean.

For example, “The premium will not only provide coverage, but the policy I am recommending can provide a dividend, such as paid-up additions. There are other dividend options, and dividends are not guaranteed.”

An appointment with a lot of jargon will prove to you that life insurance and annuities can be very complicated and confusing. And when confused, it is not likely you will purchase life insurance and annuities.


If you are the Agent, why don’t you consider presenting more than just facts?

First, consider we live in an online-based society; one that can generate nearly endless facts about almost anything. For many people, all they want is the facts, but that assumes they already understand the subject. Without such understanding, the facts frequently become in dispute. That causes left-brain confusion.

For example, think about how agents discuss Waiver of Premium with clients. The jargon is: “A Waiver of Premium provision or payer benefit clause in an insurance policy is an agreement that the insurance company will not require the insured to pay a fee to maintain the plan under certain conditions. These conditions are most commonly the death or disability of the person paying the insurance premiums on a minor’s policy.” More left-brain confusion.


How about telling your client a story?

“Some years ago, I had a client who needed life insurance. Assuming the premiums were paid, the policy would last to his age 100. He understood the policy would accumulate cash value that could help him to increase his retirement income. As an agent, especially if the premium is significant, I recommended he purchase Waiver of Premium, which he did. Nine months later, he was severely and permanently injured in a car accident. Because of the Waiver of Premium, the insurance company waived any future premiums, and the cash value continued to grow. When he died, the death benefit of the policy would be paid. Basically, if he lives, dies, quits, or becomes disabled, he will have addressed multiple problems with one solution, life insurance.” End of story and a happy right brain.

Removing the jargon can eliminate confusion for your clients. Telling a personal story about others (i.e., what others are doing) can provide an example of the social acceptance of insurance products. Here are a few story ideas to consider:

  • Have you delivered a death claim check to a family?
  • Do you have a Waiver of Premium story?
  • Do you know of someone who ran out of their retirement savings too early and had to go back to work?
  • Has a family lost someone suddenly due to COVID-19 or other surprise life events?

Today’s society has become so factually oriented, even if the facts are contradictory, we overlook the power of the right brain in sales presentations. Find the power of the left brain/right brain balance to increase your productivity. Eliminate jargon and the resulting confusion when talking about the benefits of life insurance and annuities.

If you are looking for some good sales ideas to incorporate into your client presentations, please contact AIP Marketing Alliance’s Business Development team at (800) 783-5206 Press #2 or email marketing@aipma.com.

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For more than 35 years, AIP Marketing Alliance (AIPMA) serves as a premier life insurance and annuity distribution partner to provide full-service support to independent wholesalers, brokerages and agents from our Troy, Michigan office.