Key Takeaways
- 84% of policyholders haven't reviewed their coverage in 3+ years
- Policy reviews have 3x higher close rates than cold prospecting calls
- The average policy review uncovers $150,000+ in coverage gaps
The Power of the Policy Review
Client Question: "Someone from the insurance company called about reviewing my policy—is that necessary?"
Most people buy life insurance and forget about it. Industry data shows 84% of policyholders haven't reviewed their coverage in three or more years. They don't know:
- If their coverage amount is still appropriate
- If their beneficiaries are current
- If better options exist now
- If their health has improved (lower premiums possible)
Why Policy Reviews Work
| Benefit | For the Client | For You |
|---|---|---|
| No pressure | They're not "buying" anything | Lower resistance |
| Service-oriented | You're helping, not selling | Builds trust |
| Reveals gaps | They discover their own needs | Organic opportunities |
| Updates info | Beneficiaries, contact info | Deepens relationship |
How to Position the Review
Script for Existing Clients: "I like to do an annual check-in with my clients to make sure their coverage still fits their life. Things change—income, family, health—and sometimes what made sense five years ago doesn't make sense anymore. Would you have 20 minutes to review where things stand?"
Script for Orphan Policyholders: "Hi [Name], I'm [Your Name] with [Company]. I'm reaching out because I noticed you have a policy with us but haven't had an agent review it in a while. I'd like to offer a complimentary policy review to make sure everything is up to date and still working for you. Would that be helpful?"
What to Look for in Reviews
- Life changes since purchase - Marriage, divorce, kids, job changes
- Beneficiary updates - Ex-spouses, deceased beneficiaries, new family
- Coverage gaps - Did their income increase? New mortgage?
- Overpayment - Health improved? Better rates available?
- Product fit - Term expiring? Conversion options?
The Forgotten Policy
Someone who bought life insurance 10 years ago and forgot about it
Setup
You're calling an orphan policyholder—someone who bought a $250,000 term policy 10 years ago. Their original agent left the business. The policy was appropriate at the time, but you don't know their current situation.
Client says:
“Oh, right... I do have life insurance somewhere. I think I pay like $40 a month? Honestly, I set it up and forgot about it. Is there a problem with my policy?”
Practice Objectives
- 1Assure them nothing is wrong—this is proactive service
- 2Get curious about how their life has changed in 10 years
- 3Discover whether coverage is still appropriate
- 4Find out about beneficiary updates needed
- 5Schedule a proper review meeting
The Reluctant Reviewer
Someone who thinks you're just trying to sell them something
Setup
You call a policyholder to offer a review and they're suspicious. They think this is just a sales tactic.
Client says:
“A policy review? Let me guess—you're going to tell me I need more insurance and try to sell me something more expensive. I'm happy with what I have. I don't need anything else.”
Practice Objectives
- 1Acknowledge their skepticism—it's reasonable
- 2Explain what a review actually is (not a sales pitch)
- 3Offer value without pressure
- 4Make it clear they're in control
- 5If they still decline, leave the door open gracefully
When offering a policy review, what should you emphasize?