Most customers have no difficulty understanding the importance of building a nest egg or investing in their future. Why do many of them not protect their loan with Payment Protection? The lack of this affordable financial decision may impact one of their most important future investments: themselves. Titus Maccius Plautus, a playwright (from 200s-100s BC) said, “You have to spend money to make money”. Fast forward 2200+ years and this simple dramatic quote still applies. Fact: 82% of small businesses fail because of poor cash flow. Couldn’t this be the same for a family’s cash flow? Many of your customers may be living paycheck to paycheck. Some may be fortunate and are able to invest in their future by contributing to their 401k, Money Market, IPA or other investments. Having a budget and a game plan is only effective if people plan for the “obstacles” along the way; such as, a disability or death that impairs them from work. What type of work do they do? If they’re a laborer and/or office worker, could their disability affect their ability to do their work as defined by their job description? The inaccessibility of funds for themselves (or in the case of death, their family) may impact future lifestyles. Some customers don’t like the idea of “paying a finance charge” on PPI. Why they may not understand how little the finance charge is, the price and financing decreases based on the principal balance. Explain how life insurance and/or disability insurance pricing is based on age, occupation, health and personal lifestyle (smoking vs. non-smoking, hobbies). The price of this, (albeit important), insurance will vary based on the factors listed above. Explain the simple, yet effective way to invest and protect their future:
• Simple eligibility for PPI
• Cost decreases as the loan decreases
• Protects other investments (won’t need to pull from MM Fund, borrow from 401k, etc. in the event of disability or death) Once the price vs. return is explained, the customer may easily identify with Titus Maccius Plautus’ quote. Until they can identify “personally” with PPI, the price will always be “too high”. Not wanting to finance protection will still be an obstacle. Remove the obstacles and explain how PPI is an “Investment in Their Future”.
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