Many customers don’t understand how the Payment Protection Insurance (PPI) you offer differs from other insurance. What they can’t identify with, they are skeptical of and will reject hearing about the benefits of protecting their debt.
The first thing to remember when discussing the benefits of Payment Protection, is to explain to your customer that your product “does not” take the place of traditional life and health plans. Payment Protection “compliments” the other type of insurance they own. In the event of death or disability, Payment Protection satisfies that particular debt; therefore, leaving their other life/disability insurance for what they intended their policy to provide. Payment Protection fills a unique role with multiple benefits.
Your customer is not thinking about death or disability when they take out a loan or get a credit card. They’re thinking about what the loan/credit card will allow them to purchase. They are extending their credit and increasing their debt. Now is the time to provide them with the facts.
Fact: PPI life pays based on the outstanding balance. If it’s a credit card with no balance, they pay nothing. If it’s a decreasing loan, coverage parallels the loan and the amount of coverage decreases as the loan decreases.
Benefit: The customer is never “over-insured”. Payment Protection protects whatever the amount of the balance is on the date of death.
Fact: Enhances other life insurance policies they may own.
Benefit: It satisfies that debt which leaves the other insurance to cover the rest of the debtor’s estate.
Fact: Most employer-based disability plans are “health plans” paying for medical needs. Some may offer long term disability benefits; however, most employees have to pay additional premiums to receive these benefits.
Benefit: Payment Protection pays the monthly payment (or percentage of outstanding balance if on HELOCS) for the period of time they are off work and under the care of a licensed physician for that medical condition.
The long and short of it; discuss your customer’s lifestyle. What are their plans to protect their credit, their life, or disability coverage in the event of death or disability? Most of your customers have planned coverage for a reason. Here’s your opportunity to help them protect themselves, their family, their credit, other insurance and lifestyle.
PPI/For Internal Training Use Only Download PDF version here
