Human life's value can be defined as the capitalized
value of the net future earnings of an individual after
taking into account appropriate costs for his/her
self-maintenance. It is the monetary value of an earning person. The
facts that determine it are training and education, character and health
and, above all, his ability to work. The higher these factors, the higher are
the value; and the lower these factors, the lower is his economic value.
Human life has an economic value, but unlike material things, it
is difficult to determine the exact value of a human being. A true
life insurance salesman should ask every prospect/client to determine
his human life value.
Advisors/agents, usually sell life insurance for tax benefits.
They don't always tell the prospect to buy life insurance for what it really
is and what it does for him, but by telling him only about tax benefits
that he would derive out of investment in the policy. They generally talk
to the clients of Section 88—higher returns, reinvestment, bonus rates
and interest rates—but not about the basic security that life insurance provides.
Insurers and salesmen specifically need to change their selling
techniques and alter their marketing strategies. They need to shift focus from
tax benefits to human life value. The sales talk should move from
investment to the security aspect. They should stop discussing high returns
and instead talk about life insurance and start finding out their client's worth. |
