Selling Life Insurance Over The Phone: Strategies For Success

Selling life insurance over the phone can be challenging, but with the right strategies, it can be a successful and rewarding experience. The key to mastering this art is to establish credibility and build rapport with potential customers. This involves understanding their needs, addressing their concerns, and tailoring your pitch to their specific situation.

It is important to be knowledgeable about the different types of life insurance policies, their benefits, and how they can meet the customer's financial goals. Active listening is also crucial, as it helps build trust and allows you to address any objections or concerns the customer may have.

Additionally, having a well-prepared script and being organised are essential for a smooth and effective sales call. By following these tips, life insurance agents can increase their chances of success and build a strong client base.

Prepare for the call

Before you even consider picking up the phone, you need to be prepared. This means understanding the life insurance plans you are selling, including what they cover, how much they cost, and what features they have. You should also be aware of the different types of insurance policies, such as term life insurance, whole life insurance, and universal life insurance.

It is also important to research your potential customers. Find out about their financial situation, goals, and concerns. This will help you tailor your pitch and address their specific needs. Make a list of possible questions or objections they may have and be ready to answer them sincerely and confidently. During the call, you should also have important materials and resources close by.

Practice your pitch and ask more experienced salespeople for advice. You can also script your pitch and adapt it to match the tone of your prospect once you're on the phone. Remember, it's better to be over-prepared than under-prepared.

Finally, make sure you have everything you need within easy reach before the call. This includes having any relevant files or documents open, a pen and paper for taking notes, and even recording the call if possible. Being organized will help you feel more confident and ensure a smooth conversation.

By taking the time to prepare, you will be able to build rapport with your prospects, establish yourself as a trusted expert, and ultimately increase your chances of making a successful sale.

Establish credibility and authority

To establish credibility and authority when selling life insurance over the phone, it is important to follow certain steps. Firstly, prepare yourself by understanding the different types of life insurance policies available and the specific product you are selling. Know the features, costs, and benefits of the policies you offer. This knowledge will enable you to confidently answer any questions potential customers may have.

Next, establish your expertise and credibility by explaining your background, areas of expertise, and credentials to the customer. This is especially important when selling life insurance, as it is a significant financial decision for the customer. They are more likely to buy from someone they perceive as a trustworthy expert. Be an advocate for your client, and position yourself as an advisor who has their best interests in mind.

Additionally, be transparent and clear in your communication. Avoid using industry jargon or slang that the customer may not understand. Instead, use simple, professional language to explain the terms and conditions of the policy, including coverage, premiums, and any potential limitations or exclusions. This clear communication builds trust and credibility, which are essential for a successful sale.

Finally, be patient and persistent. Selling life insurance over the phone can be challenging, and you may not close a deal on every call. Some prospects may need more time and follow-up before making a decision. Respect their decision-making process, but also be persistent in following up and staying in touch. This will allow you to build a relationship with the prospect and increase your chances of making a sale when they are ready to commit.

Build rapport

Building rapport is crucial when selling insurance over the phone, especially if it is the first call or a cold call. Smiling before you dial is important, as your prospects can hear a smile in your voice. This will help you come across as welcoming and friendly, and your prospects will feel more relaxed.

To build a connection, it is important to ask open-ended questions to encourage the potential customer to share more about their situation and goals. This will also help you to understand their needs and tailor your pitch accordingly. Some examples of questions to ask include:

• "How often do you review your policy?"
• "Tell me about your current financial situation and any financial goals you have for the future."
• "What are your main concerns when it comes to protecting your family’s financial well-being?"
• "Have you ever experienced a financial challenge due to an unexpected event?"
• "What kind of coverage are you looking for with your life insurance policy?"
• "How familiar are you with different types of life policies?"

Asking these types of questions will help you establish trust and increase the chances of a successful sale. It is also important to actively listen to the customer's responses and show genuine interest in their needs and concerns.

Additionally, it is recommended to avoid using industry jargon or slang that the customer may not understand. Instead, use professional language to boost your credibility and establish yourself as an expert in the field.

Highlight benefits and handle objections

Highlighting the benefits of the life insurance policy is crucial when selling over the phone. Emphasize how it can provide financial protection and peace of mind for the customer's loved ones in case of unforeseen events, such as illness or death. Address any concerns about affordability by offering a range of policy options that can be tailored to different budgets.

Objection: "I can't afford life insurance right now."

Response: "I understand that budget is a consideration. However, what if something unexpected were to happen, and you were unable to earn an income? While we don't expect bad things, it's important to be prepared. We can discuss your financial goals and find a solution that fits within your budget."

Objection: "I don't think I need insurance."

Response: "Life insurance provides a safety net for your loved ones and can help cover expenses and provide income replacement in case of an unexpected event. Let's talk about your specific situation and how life insurance can benefit you and your family."

Objection: "I already have insurance through my employer."

Response: "Employer-provided insurance is valuable, but it may not offer sufficient coverage and may not be portable if you change jobs. Having your own policy gives you more control and flexibility. Let's review your coverage and see if additional protection is beneficial."

Objection: "I need to think about it."

Response: "It's understandable to want to take your time with this decision. However, life insurance rates can increase over time, and your age and health can affect the cost. Let's address any questions or concerns, and I can provide more information to help you make an informed decision."

Objection: "I prefer to invest my money elsewhere."

Response: "Investing is important, but life insurance serves a different purpose. It ensures the financial well-being of your loved ones and complements your investment strategy by providing a solid foundation of protection. Let's discuss how life insurance can be integrated into your overall financial plan."

Objection: "I'm not sure if I trust insurance companies."

Response: "I understand your concerns, and as a reputable insurance agency, we prioritize transparency and customer satisfaction. We are committed to providing comprehensive coverage and excellent service. We can provide references and testimonials from satisfied customers. Let's address your specific concerns and ensure you feel comfortable and confident."

Remember to actively listen to your customers' objections, empathize with their concerns, and provide relevant information to address their specific objections.

Close the sale

Once you have addressed the potential customer’s concerns and provided them with relevant information, it’s time to close the sale. Ask for their commitment and be confident in your pitch. Here are some tips to help you close the deal:

• Use persuasive language: Remind the customer that any change in their health or family situation will affect their ability to qualify for coverage. Highlight any limited-time offers or promotions to create a sense of urgency.
• Be prepared for final objections: Be ready to handle any final objections or questions that may arise before closing the sale. Address common concerns such as affordability, the need for life insurance, or existing coverage through an employer.
• Ask for a commitment: Use a confident and assumptive tone in your closing pitch, assuming that the customer is ready to proceed. For example: "So, are you ready to take the next step to secure this valuable coverage for yourself and your family? I can guide you through the simple application process and answer any final questions you may have."
• Offer to help: Let the customer know that you are there to assist them in making the right decision. For example: "Your family’s financial protection is important, and I’m here to help you make the right decision. What do you think?"
• Follow up: If the potential customer is not ready to commit, ask for a follow-up appointment or offer to send additional information to keep the conversation going.
• Ask for introductions: If the customer commits, don't be shy about asking for an introduction to someone they know who could also benefit from your services.
• Create a backup closing statement: If the prospect is still on the fence, have a backup statement or offer to call them again at their next renewal time.
• Use visual aids: Sometimes, providing a visual representation of your offer can help the customer understand the value of your services.
• Position yourself as a trusted advisor: Focus on building a relationship with your prospects based on trust and expertise. Offer valuable insights, educate your prospects, be transparent, and focus on providing solutions tailored to their needs.
• Be respectful: Remember to be respectful and not pushy when delivering your closing pitch. If the potential customer expresses further hesitation, be prepared to address their concerns patiently and provide additional information to help them make an informed decision.

Frequently asked questions