Selling Life Insurance by Mail (1,175 words)
It is a simple offer, clearly stated, expressing increasing value of the coverage offered. But, why would a caring parent even think about buying life insurance for a child between one year and 12 years of age?
The notion is known in insurance parlance as "guaranteed insurability." Guaranteed insurability means that no matter what happens to your children, no matter what your child's health condition is at age 21 and again at age 28, the guaranteed insurability option allows an increase in benefits without any physical examination.
Starting a policy when a child is young ensures that an adequate amount of life insurance is guaranteed during the lifetime of the youngster. It is this positioning which makes this offer such a strong effort.
The value-added appeal (doubling of benefits at no additional cost until age 21), coupled with guaranteed insurability form a persuasive appeal. Then Gerber sweetens the offer by presenting a double benefits plan option ($10,000 benefit doubles to $20,000), and a triple benefits plan option ($15,000 benefit doubles to $30,000.) That means the insured child has options that can increase adult coverage from $50,000 to $150,000.
That's a good deal if an unanticipated health condition should prevent the child from obtaining coverage as an adult.
There is one final twist in the product: The type of insurance offered in this package is permanent insurance (whole life) that builds cash values. Cash values are a type of enforced savings.
In the P.S. of the letter, Gerber lets the prospect know that:
In 20 years, Grow-Up cash value equals or is greater than all the premiums paid.
After having the protection of the insurance for all those years with its guaranteed insurability options, the insured child can turn in the policy and get back every dollar ever paid in premiums.