So, yes, it is possible to cold call qualified candidates and ask the question: Do you have too much life insurance?
This, of course, is the opposite of what life insurance producers have been trained to do since they first entered the business, but, nonetheless, it can be helpful for people who have life insurance policies they no longer want, no longer need or no longer can afford.
However, the universe of prospects who still need insurance is much larger than the universe of prospects who would benefit from a life settlement.
Rejection
A more likely scenario is the traditional life insurance cold call that leads to the common objection: “I already have enough life insurance.”
If you think you’re talking to a prospect old enough to qualify (ages 65 and older), an interesting pivot from this response could be: “Well, maybe you have too much life insurance, and I might be able to help you with that as well.”
The foundation of your life settlement activity should really be your existing clients, by keeping aware of their life changes, financial changes, health changes and the status of their policies, and by building clients’ awareness that life settlements exist.
You don’t want your senior clients to be part of a growing group of cash-strapped policyholders who let their contracts lapse, or surrender the contracts, only to find out that a policy could have been worth a substantial amount of money in the life settlement market.
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