Cost vs. Price vs. Value
Cost – Price – Value is the age old question of how to approach your clients with a solution and which do you promote more. I doubt there is an answer to always go by as every situation is different but knowing the differences between each are important and having a strategy to present your client matters.
Take Life Insurance, Term vs. Permanent is the age old question for clients. Term will be the have the lowest Price however it Costs more than the Permanent options. Show side by side with a comparison and ask your clients 2 questions:
| 40y.o. Male N/T for $100k | Term | Return of Premium | Perm |
| Cost/yr | $300 | $800 | $1,300 |
| Total Cost | $6,000 | $16,000 | $26,000 |
| Cash Value | $0 | $16,000 | $27,000 |
| Health in 20 yrs? | Not Sure | Not Sure | Don’t Care! |
| Cost/yr @60yrs old | $1,700 | $3,300 | $1,300 |
| Total Cost 60-80 | $34,000 | $66,000 | $26,000 ($52k) |
| Cash Value | $0 | $66,000 | $82,000 |
| Insurable @80 y.o.? | Not Insurable | Not Insurable | Still Insured! |
- If price was not an issue which policy would you PREFER?
- If price was not an issue which policy would you NOT WANT?
Do this with your Life cases and you will sell more permanent policies than you are now. By consulting your clients and showing them the options you bring VALUE to the sale. Value is the real key to all sales and if you do not get your clients to see the Value in what you are presenting you have NO SALE!