Life Insurance is bought not because someone may die but because one must live.

Life Insurance is bought not because someone may die but because one must live.

Let us describe what a Life Insurance policy looks like. A man or woman agrees to take an insurance policy, pays regularly for a certain period a fixed amount of money called PREMIUM to an insurance company.

He or she becomes a policyholder and receives a document called a POLICY. The insurance company undertakes to pay him or her an amount of money called SUM ASSURED at a certain date or in case of death of the assured.

The question that comes to mind is "why should a person pay that fixed amount of money called Premium to the insurance company every month or every year over a long period of years instead of spending the money on other things?

Let us take a look at life generally, everyone wants to live and to live, one must work. One need to pay for rent on accommodation, provide food for himself and the family, attend to extended family problems, pay electricity and phone bills and other necessary bills that makes life interesting.

As soon as a man or woman takes a life policy, he has something to look forward to. There is hope for a better tomorrow. Imagine a man or woman that takes up a policy that will provide him or her with five million dollars at retirement. The man or woman has not only bought security for tomorrow, but hope for a better future.

This is the privilege of selling Life Insurance. It is an interesting, rewarding and remunerative job through which you meet people and help them to accomplish their goals. Life Insurance is the easiest solution to the difficult problem of making adequate provision for one's old age and the family.

It may interest you to note that your prospect may not be aware that there is a problem, and there is need for Life Assurance. It is your job as an Insurance agent or salesperson to make him or her realize that:

- he or she should think of his or her old age

- he or she should think of owning a house in the nearest future

- he or she will need much money to have his or her children properly educated

- after he or she dies, there is need for financial support for the family left behind

It is also your duty as insurance salesperson or financial advisor to remind or open your prospect's eyes to the problems of life that is known as NEEDS, and identify the needs of your prospect. Everyone has one need or the other; it is the responsibility of a smart insurance salesperson to identify these needs.

According to Abraham Maslow hierarchy of needs, he based hierarchy needs on seven major assumptions: Firstly, all individuals have in common certain basic needs that are the origin of their motivation.

Secondly, these needs are hierarchical; this means that one level of need satisfaction must be met before an individual progresses or moves to the next level.

Thirdly, an unsatisfied needs serves as a motivator.

Fourthly, once a need has been satisfied, it no longer acts as a motivator. These needs are:

Level one: physiological needs - these are basic needs necessary for normal well-being. These include food, clothes, and shelter. For example, a salesperson may want to contact newly wedded about the need for buying a house in the nearest possible time.

Level two: safety needs - these are desired for factors that gives a safe and secure environment. For instance, an elderly person may walk into a store asking about a security system for a house.

Level three: social needs - these include a feeling of belonging, friendship, love, acceptance from others. For example, a person wanting to join tennis club, rotary club, etc.

Level four: Ego needs - these are individual needs such as self-esteem, personal reputation and status. Fulfillment of needs gives individual a feeling of personal worth and self-confidence.

People save for various reasons:

- some for emergency

- some for retirement

- some for family needs

- some in case of premature death

- some for children education

- some to take advantage of business opportunity

- some for vacation and holidays

- some to buy a house , car, etc

Life Insurance has unique function of creating money when it is needed most by assisting people in the area mentioned above. For the salesperson to secure repeat or continuous sales from clients, aside rendering quality service, salesperson must have a clear understanding of the clients needs.

A sound knowledge of the various classes of client's needs is necessary. Comprehensive knowledge about Abraham Maslow's hierarchy of needs and where the client is at a particular point in time is important.

Life Insurance
Paul Tunde Raji