With all the types of cases and presentations available in LDA, it could be hard to know what to present to your clients. Here are the top 5 charts in LDA.
Why Visuals Work
You might be thinking, "Why should I visualize information to my clients?". It's a valid question, but there's a lot of data that supports this;
1. 65% of people are visual learners.
The majority of your clients are more comfortable learning when visuals or graphics are used and retain what they learn better.
2. We process visuals faster!
The brain can process images and videos 60,000 times faster than text. Take this image as an example; if you're driving down the highway and see both signs, which one conveys the message better and faster?
(1)
3. Visuals Are Easier to Remember!
People remember 80% of what they see, 20% of what they read and 10% of what they hear.
4. Visuals Are More Persuasive!
According to a study from Wharton Business School, 67% of the audience was persuaded by a verbal presentation accompanied by visuals compared to only 50% when that excluded visuals.
Relating This to Insurance
Studies have shown that 88% of consumers aren't familiar with different insurance options. That means your job as an advisor is to educate clients on a recommendation so they feel comfortable with their purchasing decisions.
Despite our comfort level with insurance documents, such as illustrations, due to our role in the insurance industry, we need to consider our clients and their likely lack of understanding of insurance.
Top 5 Charts in LDA
5. Annual Premier Schedule
How many times have you heard the shock and confusion from your clients when you called to inform them of their term 10 premium increase due to the renewal? We hear this all the time. They forgot the cost is guaranteed for only 10 years leading to uncomfortable discussion.
Remember, people remember only 20% of what they read and 10% of what they hear. That's why the annual premium schedule chart adds value to your recommendation. This chart highlights the changing cost of the plans you're recommending in a visual. In the example below, see how easy it is to understand the difference in the payment schedule of each option.
This makes it clear to clients that they'll need to do something with their term 10 policy before it reaches the 10th year. LDA co-founder, Larry Kinlin, used to tell client's "Term is like a diaper. Eventually, you'll have to change it".
When to use it: Presenting to first-time insurance buyers, term length comparisons (life insurance for mortgage need), term versus permanent, term conversions, permanent plan presentation with different payment schedules, and more!
4. Total Insurance/ Total Cash Value
When presenting permanent insurance plans, such as Par Whole Life or Overfunded UL, we need to make it easy for clients to understand why they're paying a higher premium (outside of a guaranteed insurance payout) for these policy types. Since 88% of clients aren't aware of their options, educating them on how a dividend can increase the policy cash value or the insurance benefit is critical. These pages make it easy to show what they've paid into the policy versus how much cash value there is or how much insurance coverage they'll have.
As shown in the example above, the insurance benefit chart is great for illustrating riders or layers in the client's coverage and how that can change with their need over time.
When to use it: Presenting to first-time insurance buyers, term versus permanent, term conversions, permanent plan presentation, permanent comparison and more!
3. Needs Analysis
If you're a financial planner, you'll be used to showing clients a financial needs analysis, which will determine how much insurance the client needs. The insurance needs analysis in LDA takes that a step further. The interactive needs analysis chart will break up each section of the need into a piece of the pie chart. These sections can be toggled on and off, allowing you to educate the client on how their need will change over time.
Here's an example of the client's need when the policy is issued;
When the client is older, they'll no longer need to have education coverage when they reach a certain age. Also, they'll have paid off their additional debt. Notice how I've toggled those options and the need on the left-hand side has reduced.
By using these toggles, you can present a current need and future need, helping you plant the seed for a recommendation of longer-term or permanent insurance.
When to use it: Any personally owned or corporate case!
2. Cash Overlay/ Insurance Benefit Overlay
If you've ever tried to compare multiple cash value plans, you've run into one of the following issues;
- Client confusion from showing multiple illustrations.
- Time-consuming data formatting or entry from a spreadsheet.
- Human error from data entry.
Just like the cash value and insurance benefit charts, LDA makes it easy to present multiple cash value plans side by side to compare the cash value or insurance benefit. These pages can toggle between the current and reduced dividend. There is no limitation to the amount of plans that can be presented on these pages. However, we recommend less than 5 for the client's sake.
As you can see, it takes next to no time and effort to notice the blue plan has a higher cash value than the green.
When to use it: Comparing Case value plans.
1. Sum of Premiums
No matter what we tell the client about the recommended option, they'll always want to know how much they're spending at the end of the day. Not all illustrations have the cumulative price built-in, so may require manual effort to present.
In most cases, we show the payment schedule. This makes it difficult for clients to get past the large gap between shorter-term and permanent plans.
The Sum of Premiums chart is not only the best option to show clients the value of insurance over time, but it's often the page that sells clients on the idea of purchasing a longer-term plan, despite the extra cost today.
When looking at the chart below, if you had a life insurance need that lasted until you passed away, which option would you prefer? It's safe to say either the green line or the blue line.
When to use it: Any insurance case that isn't a dollar-for-dollar comparison.
Learn more!
For additional questions relating to our page options and when to use them, book a meeting with the LDA customer success team through the link below!
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