Congratulations on becoming a life insurance agent. You can now help thousands of elderly people pick the right policy. You can only do that when you master how to sell life insurance policies.
This has proven difficult for some agents but you can break that barrier. In this article, we walk you through the process of selling your first policy. It doesn’t matter if you have never sold a policy before. You will get actionable tips to get started right away.
Ways to Sell Life Insurance Policies
Take a cue from the ideas below to sell your first and subsequent life insurance policies.
1. Understand the Demographics to Sell Life Insurance Policies
Your certification is done and you are now free to become an agent in the state. However, don’t jump into the market without doing due diligence.
The rule of thumb is to understand the demographics you are targeting. This also relates to the type of life insurance policy you are selling. For example, term life insurance is ideal for younger adults. If you are selling to older adults, target those between the ages of 65 and 70.
The next factor to consider is the income level of your target market. Life insurance is costly but worth it. But how much is the worth of the average policyholder?
Typically, life insurance policyholders are retired from public service and looking to enjoy their older age. As such, their income may not be as buoyant as when they were actively working.
How many members of the family does your prospective policyholder/client have? The higher the family size, the more premium the client may pay.
2. Become Familiar with the Life Insurance Products
There are four (4) major types of life insurance policies. Each caters to the needs of different policyholders.
For example, whole life insurance is ideal for clients who want to insure the remainder of their lives.
The term life insurance policy is okay for younger adults. The policy term can be anywhere between 10 and 40 years.
However, you can sell a universal life insurance policy to clients that want to earn passive income. The policy supports investment portfolios, through which the policyholder can invest in stocks and other assets.
A final expense life insurance policy is another you can sell. The policy covers the costs of burying a deceased policyholder.
So, pick any of the life insurance policies and start selling.
3. Become an Authority in the Niche
Establish yourself as an authority by gaining extensive knowledge of the policies. Read books, ask the insurer pertinent questions and consult industry leaders.
4. Partner with a Life Insurance Company
Your role as an agent is to help the life insurance company sell its policies. Therefore, you must partner with one.
Make your research to be certain of the company’s reputation. Other factors to look into are the:
- Commission rate
- Types of life insurance policies offered
- A general acceptance of the insurance company’s services.
5. Learn How to Generate Leads for Your Agency
Generating leads should be a part of your strategies to make sales of life insurance policies. Leads can be generated on social media, through blogging and running PPC adverts.
6. Intimate Your Team on How to Market Life Insurance Policies
Do you have a team of insurance salespeople? Inspire them with ideas on how to sell life insurance policies. Most of the time, your team doesn’t know what it takes to promote these policies.
Inspire them through any or more of the following ways:
- Create a list of marketing strategies.
- Give targets on the number of life insurance policies to sell.
- Organize contests to reward the team member that will beat the others in the competition.
7. Master How to Close Sales on the Phone
Phone closing is one of the strategies for recording higher sales of life insurance policies. You need to learn how to “sweet talk” a client to buy the policy. Also, learn how to tackle objections. You can learn more about closing life insurance deals on the phone here.
8. Be a “Problem Solver”
Most life insurance agents appear too “salesy.” Clients know that you will make a commission from the sale, but don’t make it obvious?
What should you do differently? Be a problem solver. Identify some of the challenges the clients may have and address those. Offer valuable tips on how to choose the best policy. You can also inspire them with ideas on what the policies cover and what they don’t cover.
The goal is to come off as a “helper” rather than a salesperson.
9. Never Give Up
We know that it is quite difficult to sell the policies, even if you implemented all the selling life insurance techniques. You must never give up or decide to stop promoting the policies.
Rather, spend quality time going over the strategies you’ve used. See the ones that worked and scale them. Then, work on the ones that need improvements.
10. Invest in Knowledge
Aside from reading blogs and following the trends, gain knowledge as well. The insurance industry is open to changes with time. An effective strategy to stay ahead is by enrolling in continuing education. Besides, this helps you gain additional certifications to boost your life insurance agent career.
Is Selling Life Insurance for Me?
Selling a life insurance policy is ideal if you are interested in helping people live better lives as they age. It is also ideal if you want to gain considerable experience in how life insurance policy works.
How Many Life Insurance Policies Are Sold Each Year?
Millions of life insurance policies are sold in the United States alone. According to Statista, over 27.8 million life insurance policies were sold in the U.S. in 2018.
This proves that the demand is higher. So, take how to sell life insurance products seriously so you earn more commissions.
Conclusion: Sell Your First Policy & You’re Good to Go
The first policy is the hardest to sell. But if you implement the best ways to sell life insurance policies, you will make that sale. When you do, start scaling your pitches. Exploring different marketing channels, including email marketing and social media to sell more.