CHRISISM #14 - The Irresistible Combination

12 April 2016

I have had so many advisers tell me that they find Trauma Cover really hard to sell, primarily because they regard it as too expensive and it is usually the last cab off the rank after IP, Term & TPD.

Well I believe that the Miracle Product (formerly known as Trauma Cover!) is the jewel in the personal protection product crown and it is woefully undersold by most advisers and therefore largely unappreciated by their clients.

Although I will be talking about lots of different aspects of the Miracle Product over the coming months, today I just want to focus on the irresistible combination. I want to make sure that from now on you are all sharing the irresistible combination with your clients - especially your younger clients aged 35 or under.

How many of your clients have bought Trauma Cover (or any other personal protection product for that matter) because they expect to claim? None of them, I would guess - they have all bought it "just in case". This means they regard the chances of claiming on the policy as only a possibility, and in most cases a remote one - after all "It's not going to happen to me, is it?".

Well, think again! A survey conducted by General Reinsurance Life in 2007 found that the percentage likelihood of a 30 year old male in Australia suffering a "trauma" as defined in a Trauma policy before the age of 70 i.e. within the life of the policy was 68%! Most definitely a probability therefore rather than a possibility.

But if likelihood of incidence was the single most important criterion for popularity of product, then what would be the most popular protection product? Term Cover, of course, because that is renewable all the way to 99, so as long as you keep it going, you are almost guaranteed to claim! But this does not motivate your client - why not? Because they are dead and therefore get no benefit themselves!

What makes an irresistible combination is when you combine a likelihood of claim with a likelihood of recovery. There was a large medical survey conducted in the USA back in 1990 which found that, as long as 26 years ago and if caught early enough, then the likely recovery rate from cancer, heart attack and stroke was 70%. Well, with all the medical advances and early detection opportunities that now exist, I would suggest to you that for most (not all) types of cancer, heart disease and stroke symptoms, especially if caught early enough, the recovery rate would be well over 70% and in a lot of instances well into the 80s or even 90s.

So if we combine a likelihood of incidence of 68% with a likelihood of recovery of 70%+, I believe we have an irresistible combination, which means that, as long as we own it for as long as possible (stepped vs level premiums will be another Chrisism in due course), the Miracle Product is the only personal protection product on which we are not only likely to claim, but we are also likely to be around to benefit.    

Now share this with your clients!

CLIENT ACQUISITION & ENGAGEMENT SKILLS WORKSHOP DATES & TIMES

BRISBANE TUESDAY 12 APRIL

MEZZANINE LEVEL, 88 CREEK ST

9.00am to 4.30pm

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The Risk Workshop by Chris Unwin

Are you a financial adviser who would like all of your clients to have appropriate types and levels of personal protection? But perhaps you feel you need a more structured and client friendly engagement process?