The correct answer is: A. Life insurance is sold, not bought.
Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder).
The sale of life insurance is a complex process that involves many different steps. The first step is to identify potential customers. This can be done through a variety of methods, such as cold calling, direct mail, or online advertising. Once a potential customer has been identified, the next step is to qualify them. This involves determining whether the customer is a good fit for life insurance and whether they can afford the premiums.
If the customer is qualified, the next step is to present them with a proposal. The proposal will outline the terms and conditions of the life insurance policy. The customer will then have the opportunity to ask questions and review the proposal.
If the customer is satisfied with the proposal, the next step is to issue the policy. The policy will be issued once the customer has paid the first premium.
The final step in the sales process is to service the policy. This involves keeping in touch with the customer and making sure that they are satisfied with the policy.
The statement “Life insurance is sold, not bought” is incorrect because it implies that the customer has no role in the sales process. In reality, the customer is an active participant in the sales process and has the power to decide whether or not to purchase life insurance.
The other statements are all correct. Selling is a complex process that involves many different skills, such as communication, persuasion, and problem-solving. Prospecting is the process of identifying potential customers. A natural market is a group of people who are more likely to be interested in a particular product or service. Loss assessment is the process of determining the amount of money that an insurance company will pay out in the event of a loss.