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What is the exception where you can mention a product over the phone?

• You can mention a product when you call for referral and you were told that the customer is interested in a certain type of insurance • Example of presenting the purpose: • I am from Mr. Popescu, our mutual acquaintance • Did Mr. Popescu inform you that I will call you? • All right • I know you are interested in insurance...is that true? • Perfect • To develop an insurance solution I need some information • Is it okay if I write you on WhatsApp and you reply like that? • You can mention a product when you call for referral and you were told that the customer is interested in a certain type of insurance • Example of presenting the purpose: • I am from Mr. Popescu, our mutual acquaintance • Did Mr. Popescu inform you that I will call you? • All right • I know you are interested in insurance...is that true? • Perfect • To develop an insurance solution I need some information • Is it okay if I write you on WhatsApp and you reply like that?

What types of funds can a customer invest in through the unit linked policy?

• A customer who buys a unit linked policy has three types of funds at his disposal • High risk fund: investing in shares • Medium risk fund: investments in shares and deposits • Low risk fund: investments in bonds and deposits • Fund allocation is determined by the client

Installments, food, gas, medicine, clothes, phone maintenance, cable TV, French lessons, car service, new tires, dog food. And this insurance agent is also bothering us. The husband said sullenly to his wife. Yes, you're right, yes, and the agent is when he says we can afford all this on our salaries, his wife replied, risking a family quarrel. However, he stopped eating and waved to his wife, indicating that he had gone mad. Do you know Violeta, my colleague from work? Did the wife dare to continue? Yes, what about Violeta? Remember her husband was electrocuted? She was left a widow to raise two children alone. Three years have already passed since then. I see her tired and sad all the time. I often hear her talking to her children on the phone and she keeps telling them that we can't do that, we can't afford that. We say to conclude once Do you want to buy the damn life insurance once? My dear, I'm going to the store to get some more bread and then I'm coming home. These were the husband's last words.

The next words that struck terror into the wife's soul were those of the police officer. Your husband had an accident. The answer he gave to the 3-year-old girl who asked But when is daddy coming home? He doesn't even remember, but he probably was. Daddy never comes again. The days that followed seemed unreal. All. She couldn't believe that the unimaginable had happened to her and that from a cheerful and caring wife, she suddenly became a widow. Years passed, the girl grew up. The drama she had gone through years before had marked her. She was more serious and mature than her peers. Just like before the tragedy, the mother made sure that the little girl did not lack anything. But when they bought more expensive things, he made sure to discreetly remind her. These are from Tavi. Daddy is no longer with us, but because you loved yourself so much, he took care and left some money especially for you. Obviously, it was the money from the father's life insurance.

What policy do you recommend to a client with a high risk tolerance?

• You recommend a unit linked investment policy to a client with a high risk tolerance • Life is priceless… • And then how can you size a life insurance? • Life insurance is money, paid out in hard times or good times • A customer with a high risk tolerance will buy the unit-linked policy for the mirage of profit • Emphasize this specificity as best as possible • You recommend a unit linked investment policy to a client with a high risk tolerance • Life is priceless… • And then how can you size a life insurance? • Life insurance is money, paid out in hard times or good times • A customer with a high risk tolerance will buy the unit-linked policy for the mirage of profit • Emphasize this specificity as best as possible

How does the child savings plan work?

• Can you sell the child savings plan without understanding how it works? • The truth is... yes • But, out of ignorance, you risk misinforming or deceiving the customer • Knowing how it works will give you security and help you logically answer questions and objections

What is the child savings plan?

• The child savings plan provides the child with a fixed amount at a fixed time, regardless of whether the insured - usually one of the parents - is alive or deceased during the term of the policy

How did sales evolve during the compensation period?

• During the compensation period, sales were: • In the first 7 months, in which the company operated at the new headquarters, and used the lower capacity machine, sales were 10,000 Euros • In the last 2 months, when the company returned to the old headquarters and used the new equipment, sales were 9,000 Euros

How can you approach a grouchy and emotional customer?

• Nothing is accidental • The fact that fate – or someone else – brought us face to face today may be a sign • It would be a shame to let the chance slip through your fingers to do something good for those for whom your heart beats • Many times I have thought that through me someone set out to help people • Do you know how insurance helps people who are hit by fate?

How do you answer the objection "I don't need business insurance"?

• Are you saying you don't need profit? • With the collapse of the business, in addition to profit, several other things disappear: - Credibility in front of business partners - Creditworthiness in investors' calculations - Employees, who go elsewhere - Customers, who choose other suppliers - Reputation, which you have built up over years, and which disappears in minutes - Your image as a successful man • You don't need, you really need insurance, is that true?

What risks do the additional clauses cover?

• Additional clauses cover two categories of risks: • Major risks, which can affect the financial stability of the family by depleting savings and/or reducing income • Average risks, which can affect family savings • Major risks, respectively medium risks, refer to the financial impact they can have, in terms of the cost of treatment to restore health • Sometimes average risks, such as a fracture or surgery of medium difficulty, could be covered from family savings • But major risks, which lead to the disappearance of income and / or the sudden increase in expenses, cannot be covered from family savings • For a family to overcome the financial problems generated by a major risk, a source of money is needed: and this is life insurance • It is important that the risks are covered in this order: major and then medium, especially if the client does not have the money to buy all the clauses

How do I know that the company will still exist in 20...30 years?

• You have no way of knowing • And no one has any way of knowing • Have you heard of Aviva, Axa, Eureko...? • These insurers were active in Romania, after which they withdrew • Today, the policies concluded with these insurers are administered by other insurers, by keeping the conditions of the insurance contract • An insurer exiting a market does so by selling its portfolio • The insurance conditions do not change by changing the insurer • So you have nothing to worry about

How do you present the benefits of insurance to your business?

• Comprehensive business insurance offers you three benefits: - Repair or replacement of damaged or destroyed goods - Coverage of damages caused to third parties, for which your company is responsible - Recovery of unrealized profit • For example in case of fire: - We pay for the repairs - We pay for damage caused to neighboring buildings or third parties affected - We pay the fixed costs for restarting the business - We pay the profit correlated with the achieved turnover • You wouldn't have expected that insurance could do so much for you, would you?

What is risk inspection and how is it performed?

• The risk inspection is an assessment of the physical and technical condition of the vehicle • It consists of taking a set of pictures, with a clean car, in daylight • As a rule, photos are taken showing the following: - Body integrity (pictures from the 4 corners) - The 4 rims and tires - Punched chassis series (or in the windshield) - Dashboard with the key in the ignition and the engine running - Mileage • If there are scratches, etc., a detailed photo is taken and the risk inspection report will be recorded in the policy • Attention: - Pre-existing damages will not be subject to compensation under the policy that will be issued - It is advisable that all these damages are repaired, the risk inspection is carried out again and an additional act is issued stating this

What story can you tell to open the conversation about a new policy?

• How do you choose the theme of the story? • Choose a story that will have an impact on the customer • If you have a true story, then tell it • The important thing is to say it naturally, without seeming to be pursuing a goal

What happens to clauses when premiums stop being paid?

• After the grace period, the additional clauses lose their validity • It is possible for the insurer to accept the reinstatement of the additional clauses, by paying the outstanding premiums and completing a new medical questionnaire • If the insured acquired an illness or suffered an accident in the meantime, the insurer may refuse to reinstate some of the clauses or reactivate them, but with exclusions

How can you answer customer questions?

• General insurance for the family - Home insurance - Helmet - Accident insurance - Health insurance • Life insurance - Death insurance - Mixed life insurance - The savings plan for the child - Unit linked • Business insurance - SME insurance - EEI insurance - RCT insurance - Business interruption insurance

What is casco insurance?

• Casco is an optional insurance aimed at owners of vehicles registered in Romania • On the basis of this insurance, damages suffered by your own vehicle are compensated (unlike RCA, whose effects benefit the damaged third parties)

If I have more claims during the policy, will they be covered in full?

• Depends • There are some insurers where the recovery of the insured amount is automatic, being included in the basic package • With other insurers, this clause is optional • In any case, the number of claims covered by the policy is limited (for example to a maximum of 3 claims per year)

How do you respond to the objection "I'm looking for you to buy life insurance"?

• I mean... my wife is going to call me, you mean? • That you just have no way of knowing if and when a misfortune will happen, right? • We will be able to help your family, then, with a lot of money, if you do something today for your loved ones • Because we don't know what "then" means

What is the effect of buying a policy with the minimum staggered premium?

• The minimum tiered premium offers the advantage of minimizing expenses • The customer will be able to benefit from the flexibility of the unit linked policy, being able to make additional payments • Attention: • The disadvantage of this choice is the very low death protection, since the minimum installment premium corresponds to the minimum sum insured

When does the insurance policy start and end?

The validity of the travel policy begins on the day the policy comes into force. Upon leaving the country and ends on the day the policy expires upon returning to the country. As an exception, policies can be extended with a written request from the insured to the insurance company.

How do you choose the subject of the story?

• Tell stories about… - Customers who have been compensated - Customers who wanted to drop their insurance and you convinced them to continue - Customers who followed your advice and were mobbed - Notoriety events, connected with the notion of risk - Customers who have given up their insurance and then the uninsured risk has occurred - Customers who have been recommended to you by other customers - Funny situations - A customer who raised a common objection and you resolved it

How are the covers determined on the IMM policy?

• The coverages are established based on the risk analysis of the business • It is important to prioritize major risks, i.e. those that can affect critical elements and destroy the business:

The client turned you down and nothing really happened to him; so was he right to refuse you?

• It is a very common situation • The client refuses, months or years pass, nothing happens to him, and he concludes that he is invulnerable and therefore does not need insurance • Is this conclusion logical? • Not • The only logical conclusion is that he was lucky in the past • Are you right that he doesn't need insurance? • Not • Are you abandoning him? • Not • You persist, because... risk is a certainty in our lives • The risk is unpredictable, so it can occur at any time • And it is vital that at that time the family has the right insurance • BrainO offers you various methods and scenarios for customer awareness ("warming up"), including online

How do you present SME insurance?

• The SME policy ensures the reduction of losses in the event of a risk, by compensating for damage to the building or its contents: stocks, machinery, etc. • The business interruption clause provides you with the financial support for restarting the business, by covering fixed costs, including additional ones, as well as partially unrealized profit • The policy also covers any damage caused to third parties, such as bodily injury or material damage, thus protecting the company's reserves and assets

What total amount will the insurer pay?

• The insurer will pay: • Material damage, based on SME insurance • Consequential damages, based on the business interruption clause, namely: - Net profit

Can additional clauses be added or removed?

• Yes • This can usually be done on the policy anniversary, on application, and obviously with the insurer's agreement • If the addition of clauses is requested, the insurer will request the completion of a medical questionnaire • If he notices a deterioration in health, he will most likely refuse to add new clauses

What is an investment fund?

• An investment fund is an institution in which people jointly invest their savings • Accumulated funds are used to purchase assets • Depending on the assets in which capital is invested, there are three types of funds

How much money do I get back if I cancel the child's policy?

• If you cancel the policy within the first 3 years, you get nothing back • If you terminate the policy from the 4th year onwards, you get the surrender value plus additional earnings on the date of termination • The redemption value is specified in the contract for each individual year

What risks can affect a family's financial security?

• A fire or an earthquake can destroy the home or business, a road accident can destroy the car, so they will affect material comfort • An accident or a serious illness can lead to incapacity for work or death, so the family's income will decrease or disappear • A moment of inattention or a human error can generate damage to third parties, so accidental debts • These are the major risks and must be covered with priority • All others, which may erode savings but will not affect the financial security of the family, are minor risks and can also be insured • Bringing up major risks increases the chances of completion and reduces the likelihood of objections • A customer can say that he has 500 Euros to paint his apartment, but it will be much more difficult for him to say that he has 100,000 Euros to buy a new home

Can the child's policy be changed?

• Yes • Most insurers accept policy changes on your anniversary • If you wish to increase the insured amount, the insurer will request the completion of a new medical questionnaire

What compensation was paid on the business interruption clause?

• Compensation paid on business interruption clause = 74,250 Euros

How can you convince an old customer to buy a new policy?

• You can do this in two ways: • Whichever of the two methods you choose, if you sell a new policy, your client and his family will be better protected • With a new policy the client and his family are closer to having enough insurance

How can you "warm up" the relationship through telephone communication?

• You can call the customer… - To (re)explain to him what the policy he owns contains - To communicate insurance news - To communicate news of interest to him - To ask his advice - To invite him to an event - To inform him that he still does not have "enough" insurance - To emphasize the utility of insurance after payment of a claim

How can you launch the story?

- Do you like stories? Can I tell you something? - I'm pleased. I just helped a customer... - I'm upset. I get angry when people don't listen to me... - I'm upset. A client of mine only received 100,000... - I just broke up with a lady who... - Can I brag? Let me tell you something... - Problems... Tell me, when something hurts, who do you turn to, a doctor or a confectioner...? - That's how the Romanian is. He knows everything - You give a penny, a penny makes... Is it? - You know that kind of people who...? - Do you understand these people? They care more about their car than their wife and kids... - Yes, who wouldn't want it... And profit, yes, and safety... Eh... It hasn't been invented yet - Cheap and good... Kinda hard... - I want to put money in their pocket, and they don't want to... - What would you do in my place, if you came across a family man who doesn't care about his family? - A ruin brings no profit. It is? - I tell you honestly, that if it weren't for me, let me insist, some time ago, Mr. X would not have existed today... Or he would have existed, but he would have lived in some brothel...

How do you present death insurance?

No insurance replaces a spouse or parent. Death insurance replaces the wages that the insured was bringing home with the money from this insurance. You will be present not only in the memory of your wife and children, but you will be a support for everyday life.

How am I compensated under the EEI policy if the damaged parts are no longer available on the market?

• If the spare parts are no longer in series production, the compensation will be given in money, based on the actual value of the insured item

What risks does the casco policy cover?

• There are two categories of risks: • There are differences in how these risks are grouped, depending on the insurer

How do you resolve the "I don't trust" objection?

- A: I don't trust insurance • I understand you. It was the same in my case. Now, after helping dozens of families, I know what it means to have enough insurance. (propose the meeting) - A: I don't trust insurance • You see... after an earthquake there will be two categories of people: some who will receive money for a new home and others who will wonder who and why they didn't trust. Millions of people around the world trust us. Why wouldn't you have? (propose the meeting) - A: I had insurance and... I wasn't satisfied... • I understand you. There is no forest without dry areas. It just means that you have to be careful in whose hands you leave your family's financial security. (propose the meeting) - R: I heard that someone suffered... did not receive... was dissatisfied... • I understand you. The person you heard this from may or may not be right. But in any case he will not pay you tens of thousands of Euros in case of damage. Only an insurer will. (propose the meeting) - A: I don't trust insurance • I understand you. It was the same in my case. Now, after helping dozens of families, I know what it means to have enough insurance. (propose the meeting) - A: I don't trust insurance • You see... after an earthquake there will be two categories of people: some who will receive money for a new home and others who will wonder who and why they didn't trust. Millions of people around the world trust us. Why wouldn't you have? (propose the meeting) - A: I had insurance and... I wasn't satisfied... • I understand you. There is no forest without dry areas. It just means that you have to be careful in whose hands you leave your family's financial security. (propose the meeting) - R: I heard that someone suffered... did not receive... was dissatisfied... • I understand you. The person you heard this from may or may not be right. But in any case he will not pay you tens of thousands of Euros in case of damage. Only an insurer will. (propose the meeting) • Is it a real objection? • Surely • It is one of the most frequent objections • Can be caused by problems in the insurance market (bankruptcies, late payments, etc.), negative personal experiences or rumors and prejudices • Resolving this objection can be done by providing arguments that the client cannot deny

What is more urgent, protection or saving?

• To save there must be a constant and long-term financial surplus • But the financial surplus will disappear quickly, if - ... burned down your house - ... you have become unfit for work - ... you have debts to pay • The order should be this: first protection, against all major risks, and then saving, as much as possible • But if a customer insists on buying unit-linked, with the minimum sum insured, even though he has a child, a home and a business, and he doesn't have enough insurance, what do you do? • You sell him what he wants • But you will still insist that he buy policies that provide him and his family with enough insurance • Your role as an insurance broker is to sell your customers enough insurance • Why is this your role? • Because what you sell - insurance - is the only way customers can get financial protection • Remember: the only one • Savings methods... there are plenty more

What happens to my money if the insurer goes bankrupt?

• In this case you may lose some of your money • But I would like to ask you something… • How many serious insurers have you heard of going bankrupt?

How do I know the insurer will pay all these amounts on the child's policy?

• You conclude a contract with the insurer • Both you and the insurer must comply with this contract

What are the stages of the oral presentation of insurance solutions?

• In order to understand why he needs a certain insurance, the customer must first remind himself that... he has a certain need • Therefore, before presenting the solution you propose to him, it is good to recapitulate the insurance needs of the client and his family

At what value are electronic devices insured?

• Devices are insured at new (catalogue) value, including any taxes paid (for example VAT, customs duties, transport costs, excise duties)

What are variable expenses?

• Variable expenses are those expenses that are related to the level of production: - Commissions - Transportation costs - Raw materials - Packaging

What methods can you use to get referrals?

• How you can get referrals…

What happens to the unit linked policy if I stop paying premiums?

• The policy will continue, including death protection, as long as you have fund units in the account • The cost of life insurance and administration costs will be deducted from the number of fund units • When the number of fund units reaches 0, the policy will terminate • The insurer will notify you of the imminent termination of the policy

How can you introduce yourself?

• Choose from the phrases below the ones that represent you and by combining them build an impactful personal presentation: - I have been working in insurance for... years and I specialize in family and business insurance - Clients appreciate me because I help them be and feel safe - They know that thanks to me and the company I represent, they are well protected against risks - I'm one of the best consultants in the firm (only say this if it's true and you feel comfortable saying it)

What is the assumption of investment risk?

• By assuming the investment risk, the client understands and accepts the fact that it is possible that at the maturity of the policy he will receive less money than he paid

Why do people with credit need life insurance - example

• If on the date of death the loan balance is 80,000 Euros and the insured amount is 100,000 Euros, then: • The bank receives 80,000 Euros • His family receives 20,000 Euros

How do you size death insurance - example

• A person with a salary of 1,000 Euro has "enough" death insurance if the insured amount has values ​​between... • 3 x 12 x 1,000 = 36,000 Euros • 5 x 12 x 1,000 = 60,000 Euros • If applicable, add the value of the credit balance

What is the child savings package - example

• The mother buys a savings package for the child, consisting of: • The savings plan for the child, with the insured sum of 50 thousand lei, which automatically includes the exemption from paying premiums in the event of the death of the parent • Life insurance, with the insured amount of 50 thousand lei • Permanent disability insurance from the accident, with the insured amount of 50 thousand lei • Exemption from paying premiums in case of disability

If the beneficiary of the savings is the child, then recommend the savings package for the child

• The optimal savings option for the child is the package composed of: • Savings plan for the child • Life insurance of the insured (usually the parent) • The insured's permanent disability insurance due to the accident • Exemption from payment of premiums in case of invalidity of the insured • If the insured brings up the rigidity of the package - for example the difficulty of partial withdrawals - say: • You just save • The money belongs to the child • Uses the "domino principle" to highlight the fact that savings continue unchanged in the event of death or disability of the insured - an unbeatable advantage of this package

Why key people in a business need life insurance - example

• An IT company has 5 employees, one of whom is the "brain" and brings in revenues of 500 thousand Euros in one year • The company's shareholders conclude a life insurance for this ITst: • ITst is insured • The contractor is the company • Beneficiaries are the shareholders

Why do people on whom the fate of a family depends need death insurance - example

• The husband earns 1,500 Euros per month and the wife earns 1,000 Euros • Since the husband is the financial pillar, the family decides to buy him a death insurance • The amount insured in the event of death is set at the value of wages for at least 3 years: 3 x 12 x 1,200 = 43,200 Euros

The insured dies - example

• The mother dies during the term of the insurance contract • The insurer will pay the following allowances: • Life insurance, in the amount of 50 thousand lei, immediately after the death of the mother, to the other parent (or grandfather, guardian) • The amount insured at maturity, in the amount of 50 thousand lei, at the maturity of the policy, for the child himself • The total compensation paid to the family is 50 thousand lei + 50 thousand lei = 100 thousand lei

How to size life insurance with savings - example

• If the client has a salary of 1,000 Euro per month, you will recommend him to pay for a life insurance with savings between... • 5% x 1,000 x 12 = 600 Euros / year • 8% x 1,000 x 12 = 960 Euros / year

The insured becomes disabled - example

• The mother has an accident and becomes disabled and unable to work for the duration of the contract (degree of disability 50%) • The insurer will pay the following allowances: • Permanent disability insurance from the accident, in the amount of 25 thousand lei, after establishing the diagnosis, for the mother • The amount insured at maturity, in the amount of 50 thousand lei, at the maturity of the policy, for the child • The total compensation paid to the family is 25 thousand lei + 50 thousand lei = 75 thousand lei

What is a decent income?

• It means that the family's income covers current expenses and at the same time there is the possibility of saving some sums of money for emergencies or for distant goals • Without an income you will have to resort to savings - if there are any, and if you don't have "white money for dark days", you will have to sell your goods or even change your home • Even if you have material comfort, even if you have no payment obligations, but if your income, necessary for daily living, has disappeared, the well-being of the family will be seriously affected

What is the well-being of a family based on?

• Think about your family • The well-being of any family living in a civilized society depends on three factors (pillars): • Whichever of the three factors is missing, family life is severely affected

What is the role of the insurance intermediary, from the customer's perspective?

• The role of the intermediary is to convince each customer to buy as many of the policies as possible that provide him and his family with enough insurance • An intermediary is really good when his clients have financial security, so they are at least protected against major risks • To fulfill your role you have to insist • Civilized, but insist • The intermediary must be a discreet but constant presence in the family life of each client • Because where middleman fails, mischief can succeed • Because fire, death and earthquake come unannounced • Don't shy away from excuses like "Well, what should I do, if the client only does the mandatory and casco?" • Your role is to sell value added insurance ie optional policies • If you reduce yourself to the mandatory and the casco, the customers don't need you • Soon they will be able to buy these policies on the Internet • And then why should they pay you?

What does material comfort mean?

• It primarily means that the family has a sufficiently spacious and well-equipped home so that the family members feel comfortable in their home • For most families, material comfort also means a personal car • Any family wants to put money aside and use the savings to purchase goods, for trips, for home renovation or for medical treatments • Even if you have a decent income, even if you have no payment obligations, but if your home was destroyed, which can be worth tens of thousands of Euros, the well-being of the family will be seriously affected

What does it mean to be solvent, i.e. to have no accidental payment obligations?

• It means having a sufficiently consistent source of money so that a possible payment obligation, even in the order of thousands or tens of thousands of Euros, is covered • Even if you have material comfort, even if you have a decent income, but if your family will be forced to pay large sums of money, the family's well-being will be seriously affected

What does it mean for a family to have enough insurance?

• And when you consider that most customers think that an RCA is enough for them...! • Do you realize how many policies you can sell your customers because they urgently need them, even though they don't realize it yet? • You will be able to try to sell other insurance policies only in families where there is not enough insurance yet • Are there many families in these? • This is probably 99% of families!

Why should you first have enough insurance, and then save?

• Saving • Usually targets a distant desire • The desired capital is obtained in a long time • In addition to life insurance, there are other ways to save (deposits, currency, shares, etc.) • It is a controllable process, only if everything goes well • Insurance • Always target a need • The necessary capital is obtained instantly • Apart from insurance, there is no other way to obtain the required amount instantly • Risk production is unpredictable

What is more urgent, protection or saving?

• To save there must be a constant and long-term financial surplus • But the financial surplus will disappear quickly, if • ... burned down your house • ... you have become unfit for work • ... you have debts to pay • The order should be this: first protection, against all major risks, and then saving, as much as possible • But if a customer insists on buying unit-linked, with the minimum sum insured, even though he has a child, a home and a business, and he doesn't have enough insurance, what do you do? • You sell him what he wants • But you will still insist that he buy policies that provide him and his family with enough insurance • Your role as an insurance broker is to sell your customers enough insurance • Why is this your role? • Because what you sell - insurance - is the only way customers can get financial protection • Remember: the only one • Savings methods... there are plenty more

What policies protect what the family has?

• ... So the house, the car, the savings, the business? • Specifically: • Comprehensive home insurance • Casco insurance • Business insurance • And generally, any type of insurance protects family savings • In the absence of insurance, the consequences of producing a risk are eliminated by calling on one's own savings

What risks can affect a family's financial security?

• A fire or an earthquake can destroy the home or business, a road accident can destroy the car, so they will affect material comfort • An accident or a serious illness can lead to incapacity for work or death, so the family's income will decrease or disappear • A moment of inattention or a human error can generate damage to third parties, so accidental debts • These are the major risks and must be covered with priority • All others, which may erode savings but will not affect the financial security of the family, are minor risks and can also be insured • Bringing up major risks increases the chances of completion and reduces the likelihood of objections • A customer can say that he has 500 Euros to paint his apartment, but it will be much more difficult for him to say that he has 100,000 Euros to buy a new home

What policies protect family income?

• Family income can come from salaried work (or commission, honorarium, royalties, etc.) or from dividends • The insured's income can be protected by: • Temporary work incapacity insurance • Business interruption insurance • Unemployment insurance • The income of the insured's family (wife, children, etc.) can be protected by: • Death insurance

What does it mean for a family to be financially secure?

• A family is financially secure if: • There is material comfort (housing, car, savings) • There is a decent and stable income, from salary, commission, or from a business • The family is solvent • Whatever may befall

In conclusion, what does it mean for a family to have enough insurance?

• A family has enough insurance if: • Husband and wife have death insurance with provisions for disability and critical illness • Housing is insured through a complex policy • The car is insured by RCA and casco, in that order, and not because the law requires it... • The business is insured (if applicable) • After the family already has enough insurance, if the family's income is above average, part of the savings can be placed in a savings life insurance • Any additional clauses covering minor risks increase family protection

What policies protect the family from accidental payment obligations?

• All liability insurance protects the family from accidental payment obligations • If you flooded the neighbor below, and you don't have liability insurance, take a few hundred Euros out of the bank and paint his apartment • But if you have fatally injured some pedestrians, and you are obliged to pay hundreds of thousands of Euros, how will your family's life continue, if you do not have RCA...? • RCA, professional civil liabilities and others, are not mandatory because "that's what the state wants" • These policies are mandatory to protect both the person responsible for causing the damage and the person who suffered the damage • How? • The one who suffered the damage is compensated quickly, by the insurer, without having to endure the ordeal of lawsuits that last for years • The person who caused the damage preserves his savings, income, properties, and implicitly the good life of his family, because the damage is paid quickly, by the insurer, and he is not obliged to go through the courts for years...

Why do people with credit need life insurance?

• In case of premature death, the balance of the loan will be paid by the insurer • The beneficiary of the insurance is the creditor (e.g. the bank) • If the sum insured exceeds the balance, the family will receive the difference

How do you recommend life insurance with savings?

• You will recommend life insurance with savings based on: • The beneficiary of the saving • Risk tolerance of the client; why? • Don't forget the "formula" of satisfaction: Satisfaction = Expectations - Reality • Even if the company also has unit linked for children in its portfolio, it recommends a guaranteed savings plan for the client's child • Otherwise, it will be difficult for him to tell the child that he invested badly, on his behalf...

Why do people on whom the fate of a family depends need death insurance?

• With the death of the person, the income that he brought to the family also disappears • Life insurance replaces the income of the prematurely deceased person • If the dependent client asks: • If I die, what else do I need insurance for? • reply: • If you die, will your descendants still need money to live on? • Life insurance does not ensure that you do not die • But life insurance ensures that your plans don't die with you

How do you size life insurance with savings?

• A life insurance with savings is sustainable in the long term if the insurance premium falls within the range of 5...8% of income • If the client asks you why it is "so expensive", explain that, whatever happens to him, the money goes back to the family • What is not known is only the moment… • When sizing life insurance with savings, you start from the available premium, because at the same insured amount. the policy is more expensive than the death policy • Not everyone can afford to save

How do you recommend the right life insurance?

• If the customer stubbornly asks you for a different solution than the one you recommend, send them an email with your reasoning • He will never be able to say that he was not well advised • Insist on selling the client "enough" insurance, i.e. sufficient protection against major risks: death, disability, serious illnesses • Many people avoid considering them out of superstition, but the risk is a certainty

Why do key people in a business need life insurance?

• In the case of the premature death of the key person of the business (it can be a manager, a valuable engineer, an IT-st, an architect, a doctor, an exceptional professional in general), it is possible that both the turnover and the profit business to decline • Sum insured can be equal to the profit generated by the key man • The beneficiaries of the insurance are the shareholders, in the case of SA, respectively the associations, in the case of SRL

How do you size death insurance?

• A client has "enough" death insurance if the insured amount represents the equivalent of his income over a period of 3...5 years • Mortgages, if any, must be added to this amount

What policy do you recommend to a client with a high risk tolerance?

• You recommend a unit linked investment policy to a client with a high risk tolerance • Life is priceless… • And then how can you size a life insurance? • Life insurance is money, paid out in hard times or good times • A customer with a high risk tolerance will buy the unit-linked policy for the mirage of profit • Emphasize this specificity as best as possible

What is risk tolerance?

• Risk tolerance is the client's willingness to assume a potential loss in the hope of obtaining a high gain • A customer who has a high risk tolerance is willing to lose money, that is, to receive at the maturity of the policy less than he paid • Avoid the question "Which profit do you want, more or less?" • All people will benefit as much as possible • But not everyone is willing to take risks • Don't rush to recommend the type of savings insurance until you've determined your risk tolerance • If you recommend wrongly, you will induce unrealistic expectations, and this is the first step towards disappointment...

How do you determine risk tolerance?

• You can ask the client the following two questions: • Would you borrow 3,000 Euros to invest them? (Yes No) • If the investment made a loss, would you leave the money there? (Yes No) • Conclusion: • If the customer offered at least one "No", then it means that he has low risk tolerance • If the customer gave two "Yes", then it means that he has a high risk tolerance

What policy do you recommend to a client with a low risk tolerance?

• To a client with a low risk tolerance, you recommend a guaranteed policy, ie mixed life insurance • If you attach the exemption clause from paying premiums in case of disability, the policy becomes the ideal long-term savings tool • If the insured becomes disabled, the insurer will save in his place • A customer with low risk tolerance will buy life insurance for the sum assured • Emphasize this advantage as best as possible

Who needs life insurance?

• People need death insurance... • ... on which the fate of a family depends; why? • ... who contracted a loan; why? • ... who are key people in a business; why? • To sell life insurance you can appeal to feelings of care, affection and even shame • For example, you can ask: • What will relatives and friends say about you if you leave your family without money? • In fact, the need for protection, i.e. life insurance, is not the client's, but those who, in one way or another, depend on him • That's why you'll often hear “Why do I need life insurance? If they die, that's…” • Life insurance is not for selfish people

What clauses can be attached to the mixed life insurance policy?

• Clauses can be attached to mixed life insurance that: • Increase death protection • Provides money for treatment in case of accident or illness • Some of the clauses may also cover other family members • Premiums related to additional clauses are not invested, they represent an expense

What does capitalization mean?

• Capitalization (in popular terms "interest on interest" or "snowball effect") means the annual, repeated reinvestment of the amount existing at the end of the previous year • It is important to remember that the guaranteed capitalization mechanism, specific to traditional life insurance, guarantees the client that his sums will always increase, so they will never decrease: today the insured has more money than yesterday, and tomorrow he will have more money than today • There are also capitalized bank deposits • But bank deposits usually have a duration of one year, the money can then be withdrawn without penalty, while a life insurance with capitalization has a long duration, usually 20...30 years • Different financial instruments with different purposes

How much money do I get at the end of joint life insurance?

• At the maturity of the policy you receive the sum insured plus the additional profit • That is, you receive at least the sum assured, which is guaranteed by the contract • If the guaranteed sum insured at maturity is lower than the sum of the premiums, explain to the client the reason: the age of the client and the relatively short term of the contract, which makes the default and capitalization period short • Explain to the customer that this product gives them certain amounts in a world full of uncertainties • The insurer undertakes to obtain the guaranteed interest year after year, for periods of 20...30 years • What other financial institution offers guaranteed interest for decades?

What is joint life insurance?

• Mixed insurance is life insurance with a savings component • It is a traditional product, so the sums insured are guaranteed

What happens to joint life insurance if premiums are waived?

• The policy remains valid but for a lower sum assured, called reduced sum assured • A great advantage, isn't it? • In this case, the client will still have a mixed life insurance, but "smaller", without paying anything more • The accumulated sum guaranteed (ie the mathematical reserve) will continue to be invested and the insurer still guarantees the same technical interest

How much money do I get back if I cancel my joint life insurance policy?

• If you cancel the policy within the first 3 years, you get nothing back • If you terminate the policy from the 4th year onwards, you get the surrender value plus additional earnings on the date of termination • The redemption value is specified in the contract for each individual year

What amount does the insurer pay in case of termination of joint life insurance?

• The surrender value is the amount received upon termination • Redemption value is a percentage of the guaranteed accumulated amount (or mathematical reserve) • A spouse buys a mixed life insurance for 15 years, with the insured sum of 45 thousand lei • In the 7th year, terminate the policy • The compensation paid to the insured is calculated as follows: • The redemption amount corresponding to the last fully paid year (6th) • 12690 • + • Additional earnings at the date of termination (simulation) • 609 • = • 13299 • Receiving a lower amount of money than what was paid, when terminating the policy, is one of the main reasons for customer dissatisfaction • Be prepared to deal with this topic • Explain to the client that, in addition to the redemption value, guaranteed by the contract, he will also receive the profit participation, calculated on the date of termination • Termination of the policy means breach of contract • In order to pay the client the money owed to him, the insurer must liquidate some investments • And this operation has a cost, which the insured bears • Explain to the customer that all values ​​in the table are guaranteed by the contract • In addition, they are guaranteed by the FGA in the event of the insurer's bankruptcy

How does joint life insurance work?

• Can you sell mixed life insurance without understanding how it works? • The reality is that… yes • But, out of ignorance, you risk misinforming or deceiving the customer • Knowing how joint life insurance works will give you security and help you logically answer questions and objections

Why do I get less at the end of my mixed life insurance than I paid?

• The guaranteed amount at maturity may be lower than the amount of premiums paid because (*): • The capitalization period is in some cases relatively short • Protection money and policy administration money are not invested • (*) The above situation is possible in the case of short-duration policies - under 15 years, in the case of elderly clients and in the case of low-value premiums

How is compound life insurance inflation protected?

• An example of a mechanism: • The insured amount increases annually with the inflation index • The insurance premium increases with a percentage communicated by the insurer

How is compound life insurance policy inflation protected?

• The insurer annually increases the insured amount by the percentage of inflation • In exchange for the increase of the insured amount, the insurer requests an increased premium, correlated with the increase of the insured amount

How do you get the guaranteed amounts at the end of each year?

• In terms of guaranteed (traditional) life insurance, of which mixed life insurance is also a part, capitalization means the following: each year the amount existing at the end of the previous year (called the mathematical reserve) is invested, together with the investment premium from the starting year • The insurer guarantees that the minimum investment return will be equal to the guaranteed technical interest • In this way, the minimum amounts are guaranteed at the end of each year of the contract; these values ​​are called mathematical reserves • Since the minimum amount at the maturity of the contract is guaranteed, it follows that the intermediate values ​​(mathematical reserves) over the entire duration of the policy are also guaranteed • The notion of mathematical reserve can be difficult for the client to understand; if you end up discussing these details with him, instead of a mathematical reserve, you can use the phrase "guaranteed accumulated sums" • It is important to note – and to communicate to the client – ​​that these accumulated guaranteed amounts are guaranteed to the client both by the insurer, by contract, and by the ASF, through the FGA • The bottom line is this: traditional life insurance (that is, with a guaranteed technical interest) is among the safest long-term investments • Westerners have known this for hundreds of years - the first life insurances appeared in the 19th century; Romanians are only now (re)learning... • That's why in the insurance market in developed countries, life insurance holds the largest share, as in gross annualized premiums (PBA) • Remember: the guaranteed technical interest is guaranteed for the entire duration of the policy • This means that no matter what happens in the economy, no matter how interest rates fluctuate, the insured benefits from the same minimum interest for the entire duration of the policy • If the question "so what?" crosses your mind, it would not hurt to consider the following realities: • In the years 1995-2000, when the sale of life insurance took off in Romania, the guaranteed technical interest had the value of 5.5% • A customer who bought a traditional life insurance in 2000, with a duration of 30 years, benefits from the same minimum interest until 2030 (!) • When you talk to your client about saving for the long term, when you get to present the benefits of traditional life insurance, focus on safety, not profit • The "security" argument will not be able to contradict it, while the "profit" argument will... • There are other investment instruments that can generate a higher return than traditional life insurance; remember the nuance: "can"

What happens to my joint life insurance policy if I stop paying?

• If you stop paying premiums in the first 3 years, the policy is terminated • If you stop paying premiums from the 4th year onwards, the policy remains valid but for a lower value, called reduced sum assured • The reduced insured amount is paid to you at the maturity of the policy, or to the beneficiaries on death, if you prematurely disappear from the family life • In addition, either at maturity or at death, the insurer pays the additional gain realized

What is the role of joint life insurance policy for a family?

• Mixed life insurance has a dual role: • Ensures the financial stability of the family in the event of the premature death of the insured • Ensures the accumulation of a certain amount at a certain time (eg retirement)

Can the joint life insurance policy be changed?

• Yes • Most insurers accept policy changes on your anniversary • If you wish to increase the insured amount, the insurer will request the completion of a new medical questionnaire

What total amount does the policyholder receive when the policy matures?

• The guaranteed technical interest is a minimum value that the insurers obtain, throughout the duration of the contract • In reality, insurers usually get higher investment returns (improperly called "interests"). • Correct is the investment result and not the interest because the interest is specific to bank deposits, or insurers mainly invest in bonds, where the gain is called "coupon" • If the investment result exceeds the guaranteed technical interest, an investment surplus appears • The investment surplus is divided between the insurer and the insured, based on the profit-sharing scheme: • Most of it goes to the insured (85-90%) • The smallest part goes to the insurer (15-10%) • At the maturity of the policy, the insured receives the guaranteed sum insured plus participation in the profit • That is, he gets at least the sum assured, never less • For short-term contracts, or when the insured is elderly, or both, the additional earnings can compensate for the fact that the guaranteed amount at maturity is lower than the amount of the premiums • The additional profit is paid in any situation of termination of the contract: death, survival or termination