Selling Health Life Insurance: An Easy Task?

Selling health and life insurance can be a rewarding career, but it's not always easy. It can be challenging to find qualified customers and there is a lot of competition, with many agents selling similar products. However, there are also plenty of opportunities, especially for those with a passion for helping others and good communication skills.

To sell health and life insurance, you'll need to meet certain licensing requirements, including being at least 18 years old, completing pre-licensing education, passing a state insurance licensing exam, and passing a background check. You'll also need to be able to handle rejection and have thick skin, as the job involves a lot of cold calling and door-knocking. Successful agents are also certified, with designations such as Chartered Life Underwriter and Certified Insurance Counselor.

Getting licensed to sell health and life insurance

The process of getting licensed to sell health and life insurance can be a challenging but rewarding endeavour. Here is a detailed guide on the steps you need to take to obtain your license and start your career in the insurance industry.

Step 1: Meet Basic Eligibility Requirements

First, ensure you meet the basic eligibility criteria to become a licensed insurance agent. While these may vary slightly depending on the state, the typical requirements include:

• Being at least 18 years old
• Having no fraud or felony charges
• Not owing any federal or state income taxes
• Passing a background check
• Being up to date with child support payments (in some states)

Step 2: Choose Your Insurance Line of Authority

Before starting the licensing process, decide on the types of insurance policies you want to sell. This is an important first step as it will determine the type of license you need to obtain. For selling health and life insurance, you will typically need a Life and Health license.

Step 3: Complete Pre-Licensing Education

Although this step is only mandatory in some states, it is highly recommended to complete a pre-licensing education course to prepare for the state licensure examinations. These courses can be taken online or in a classroom setting and cover topics such as insurance industry regulations and insurance principles.

Step 4: Pass the State Insurance Licensure Exam

Once you've completed your pre-licensing education, you'll need to pass the state licensure exam. For a life insurance license, this is typically the Life, Accident, & Health (LA&H) test, while for health insurance, you will need to pass the test offered by the state in which you plan to practice. These exams can be challenging, covering a broad range of topics, so be sure to prepare thoroughly.

Step 5: Complete Fingerprinting and Background Check

In most states, you will need to submit your fingerprints for a state and federal background check as part of the licensing process. This can often be done in person through approved providers, and the results will be shared with law enforcement authorities.

Step 6: Submit Your License Application

Finally, submit your insurance license application, usually through the National Insurance Producer Registry (NIPR). This step may also involve paying a licensing fee, which varies depending on the state. After submitting your application, the review process can take a few weeks to a few months, so be prepared to wait for your license to be approved.

Step 7: Maintain Your License

Once you've obtained your license, remember that ongoing education and renewal are usually required to maintain your license. Many states mandate that you take continuing education classes to stay up-to-date with industry laws and procedures. Additionally, you will likely need to renew your license periodically, typically every two years.

The pros and cons of selling life insurance

Selling life insurance can be a rewarding career path for those with the right skills, interests, and personality traits. Here are some of the pros and cons of selling life insurance to help you decide if it's the right career path for you.

Pros:

• High earning potential: Life insurance agents have the potential to earn high commissions, especially if they are successful and passionate about their work.
• Flexible work environment and schedule: As an independent insurance agent, you have the freedom to decide your work schedule and environment.
• Job stability: The demand for life insurance is generally consistent, providing job stability for life insurance agents.
• Passive income: Once you sell a life insurance policy, you can continue to earn commissions on it as long as the owner continues to pay their monthly premiums.
• No educational requirements: Becoming a life insurance agent usually requires no more than a high school diploma. Some states may require a licensing course and exam, but these are generally not difficult to pass.

Cons:

• Difficult sales process: Life insurance can be a challenging product to sell as people are often reluctant to discuss their own mortality.
• Commission-based pay: Most life insurance companies classify their agents as independent contractors, which means they are paid solely on commission. This can result in an unpredictable income, especially for those who are not self-motivated.
• Effort of customer acquisition: Finding qualified life insurance prospects can be difficult, and even with the help of lead vendors, the leads may be nonexclusive and sold to multiple agents.
• Long sales processes: Selling life insurance often involves long sales processes, requiring perseverance and a thick skin.
• Establishing trust: Building trust with potential clients can be challenging, especially when meeting them for the first time.
• Regulatory compliance: Navigating regulatory compliance requirements can be complex and time-consuming.

While selling life insurance has its challenges, it can also be a rewarding and lucrative career for those who are self-motivated, have excellent communication skills, and are comfortable with sales technology.

How to sell health insurance over the phone

Selling health insurance over the phone can be a challenging task, but with the right techniques and preparation, it can be a successful and rewarding career. Here are some detailed instructions on how to sell health insurance over the phone:

Build Rapport and Empathy

It is important to remember that insurance is a personal product that can significantly impact the consumer's life. Be personable and take the time to understand their circumstances. Show genuine empathy and build trust with the prospect. Remember that these prospects could become loyal clients, so make them feel valued.

Have a Clear Call to Action

At the end of the call, be prepared to close the sale. You can use various techniques, such as directly asking for the sale, but the key is to guide the prospect towards taking action. Engage them in a conversation about their real reasons for needing insurance. Invest time in understanding their health, family situation, and their motivation for purchasing insurance. This will help you create a more personalized call to action that resonates with the prospect.

Prepare for Objections

Choosing insurance can be a stressful decision, and your clients may have valid concerns or hesitations. Be prepared to address these objections and have a strategy for handling them. This is a crucial aspect of selling insurance, so it is important to be well-equipped to navigate these conversations effectively.

Customize Your Conversation

Make each conversation with your clients or prospects unique to them. Use their name, and if you have spoken before, review your previous conversations. Follow up on any concerns or questions they mentioned. Make your clients feel important and valued by tailoring your conversation to their specific needs and circumstances.

Master Your Opening and Closing

Memorize and practice your opening and closing statements until they sound natural, confident, and sincere. Test your opening with someone you trust to get honest feedback. Your opening statement is crucial to keeping the prospect on the phone, so it needs to be engaging and effective. Additionally, seamlessly transition to your closing statement during the conversation. Be prepared to handle their choice, whether they are ready to enroll or need a follow-up meeting.

Automate Follow-Ups

Follow-up communications are essential for cultivating relationships with your clients and prospects. Automate these follow-ups using CRM tools with auto-response technology to save time and streamline the sales process. This will help you stay organized and provide excellent customer service.

Develop Active Listening Skills

Listening effectively is a crucial skill for selling insurance over the phone. Focus on what the prospect is saying and try to understand their concerns and needs. Ask questions and take notes during the call to keep them engaged and ensure you have a clear understanding of their situation.

Understand the Product and Industry

Selling insurance requires a strong knowledge of the products you are offering and the industry as a whole. Stay up-to-date with the latest rules, trends, and changes in the industry, such as rising premiums. This will enable you to provide accurate and valuable information to your clients and prospects.

Handle Rejection and Difficult Customers

Selling insurance can involve dealing with rejection and difficult customers. It is important to be persistent and not take rejection personally. Focus on providing solutions to your clients' problems and remember that it may take multiple touchpoints to make a sale.

Comply with Regulations

Ensure that you are registered, trained, and compliant with all state and federal regulations for selling insurance. Complete the necessary training and sign the required privacy and security agreements. Stay up-to-date with any changes in regulations to avoid legal issues and provide accurate information to your clients.

How to get started selling life insurance

Selling life insurance can be a challenging but rewarding career path. Here are the steps to get started:

Complete pre-licensing education requirements:

Before taking the licensing exam, you must complete the required number of hours of coursework, covering policy types, industry regulations, insurance principles, and ethics. These requirements vary by state, so be sure to check the specifics for your location.

Pass the state licensure exam:

Administered by your state's insurance regulatory department, this exam assesses your knowledge of insurance concepts, laws, and regulations. A passing score is typically between 60% and 70%.

Complete a background check:

Some states mandate a criminal background check as part of the licensing process.

Find your niche:

Life insurance has many types, including term, whole, and universal life insurance. You can choose to offer a range of plans or specialize in a specific area.

Set up your home office:

Ensure you have the necessary equipment, such as a smartphone, a strong internet connection, and video conferencing software. Create a quiet workspace in your home to conduct business.

Familiarize yourself with technology:

As many insurance companies are moving away from paper applications, it's essential to understand electronic applications and automated processes for quoting and underwriting.

Develop a lead generation strategy:

Finding good leads is crucial in the competitive life insurance market. Develop a strategy to attract potential customers before your competitors do.

Build strong customer relationships:

Success in life insurance sales depends on establishing solid relationships with clients. Focus on providing excellent customer service, understanding their unique needs, and offering appropriate solutions.

Maintain a professional image:

Whether working from home or in an office, always present yourself professionally, from your appearance to your communication.

Stay informed:

Keep up with the latest developments in the life insurance industry to ensure your knowledge is current and relevant.

Selling life insurance requires dedication, persistence, and a passion for helping others. By following these steps, you can set yourself up for a successful career in this field.

The challenges of selling life insurance

Selling life insurance is not without its challenges. Here are some of the difficulties that life insurance salespeople often encounter:

Difficulty in accepting death

The topic of death is not an easy one to broach, and many people find it challenging to discuss or even consider. Life insurance deals directly with this sensitive subject, making it hard to sell. Prospective clients may be reluctant to acknowledge their mortality and the need for life insurance.

Rejection

Rejection is a significant challenge in the life insurance sales process. It can be disheartening for agents, especially at the beginning of their careers, to constantly hear "no" from potential clients. Rookies need to develop the resilience and persistence to ride out these unproductive stretches.

Building trust

Establishing trust with strangers is crucial in life insurance sales. Agents must be adept at forging relationships and providing excellent customer service to build trust with potential clients and earn their business.

Long sales process

The life insurance sales cycle can be lengthy. After the initial sale, commissions may trickle in at a rate of 2-5% throughout the remaining years of the policy. Agents need to sell enough policies to ensure a comfortable income from these small percentages.

Regulatory compliance

Navigating regulatory compliance requirements can be challenging for life insurance salespeople. They must stay up to date with local and national laws and regulations regarding the sale of life insurance to ensure they are operating within legal boundaries.

Customer acquisition

Finding qualified leads is a well-known challenge in the life insurance industry. Even with the power of the internet, good leads can be scarce and expensive. Exclusive leads, which are less likely to have been contacted by other agents, come at a high price. As a result, many agents resort to cold-calling and door-knocking, which require perseverance and thick skin.

Frequently asked questions