Convince And Sell: Strategies For Life Insurance Sales

Approaching someone to sell them life insurance can be a tricky task. It involves addressing their need for your product and showing them how your solution is their best option. To be a successful salesperson, you need to establish rapport with your client, understand their motivations, and educate them about the value of life insurance. It is also important to dress impeccably, find common ground, and mirror and match the client's behaviour to build a connection. You should also be able to relay confusing information in a way that is easy for your client to understand and see the benefit of.

Establish rapport

Establishing rapport is critical to your success in selling life insurance. Here are some detailed tips to help you build strong connections with potential clients:

Dress to impress: Whether you meet clients physically or digitally, always dress impeccably for the first meeting. It is advisable to dress slightly better than your prospect to convey reliability and professionalism.

Build trust: Gaining a client's trust is essential for closing a sale. Use social media to your advantage by creating an active and valuable online presence. Share quick blurbs on Twitter and write blogs that address your clients' concerns and showcase your expertise. This approach will help you connect with prospects and build trust.

Find common ground: Encourage prospects to open up by asking open-ended questions. Show genuine interest in getting to know them by inquising about their hobbies, favourite sports teams, alma mater, and other personal topics. This will help you build a stronger connection and personalise your sales approach.

Mirror and match: People are naturally drawn to those they perceive as similar to themselves. Develop your mirroring and matching skills by paying attention to your words, body language, and speech patterns. Adapt your communication style to match your prospect's to create a sense of familiarity and comfort.

Empathy and confidence: Display empathy and confidence from the moment you introduce yourself. Make your prospects feel like distinct individuals, not just potential revenue sources. Show that you understand their unique needs and concerns, and tailor your sales pitch accordingly.

Storytelling: Instead of overwhelming prospects with facts, figures, and insurance jargon, tell relatable stories. Share inspiring narratives about parents who left small fortunes to their struggling children through life insurance. Balance these with stories of families who missed opportunities to protect their loved ones after an untimely death.

Remember, building rapport is about creating a genuine connection and demonstrating that you care about your client's well-being. By following these tips, you will be well on your way to establishing strong relationships and increasing your chances of success in the life insurance sales field.

Understand the customer's motivation

Understanding your customer's motivation is a crucial aspect of selling life insurance. Here are some detailed tips to help you grasp what drives your clients:

Know the Common Motivators:

People buy life insurance for various reasons, but some of the most common ones include:

• Replacing Lost Income: In the event of the policyholder's death, the insurance can replace their income to support their family or dependents.
• Covering Interment Expenses: Life insurance can help cover funeral and burial costs, which can be significant.
• State Requirements: Some states have mandatory minimums for certain types of insurance.
• Best Value: Clients may be motivated by finding the most comprehensive coverage at the best price.
• High Coverage: Certain clients prioritize having the highest possible coverage, regardless of cost.
• Payment Convenience: Making payments in installments or having flexible payment options may be a deciding factor for some.

Understand Their Personal Circumstances:

Get to know your client's personal situation, including their family dynamics, financial situation, debts, and future plans. Ask open-ended questions to understand their goals, aspirations, and the things they want to protect. For example, do they have children they want to provide for, or are they planning to buy a home soon? Understanding their unique circumstances will help you tailor your pitch to their specific needs.

Highlight the Benefits:

Once you understand their situation, paint a picture of how life insurance can benefit them. For example, if they have young children, emphasize the peace of mind that comes with knowing their children's future is secure. Or, if they're planning to start a business, highlight how life insurance can protect their entrepreneurial dreams.

Share Relatable Stories:

Instead of focusing on facts and figures, share inspiring stories of people who have benefited from life insurance. For example, tell the story of a parent who, thanks to life insurance, was able to leave their struggling children a small fortune. Alternatively, share a story of someone who missed the opportunity to protect their family after an unexpected death. These stories will help your client emotionally connect with the value of life insurance.

Understand Their Risk Tolerance:

Different people have different attitudes towards risk. Some clients may be more risk-averse and, therefore, more motivated to purchase life insurance to protect themselves from potential financial losses. Others may be more willing to take risks, and you'll need to emphasize the potential consequences of not having adequate coverage.

Offer Solutions to Their Problems:

Instead of focusing on selling a product, position yourself as a problem solver. For example, if your client is concerned about the financial future of their dependents, offer life insurance as a solution to that problem. Show them how life insurance can address their specific challenges and improve their situation.

Remember, understanding your client's motivation is key to tailoring your sales approach effectively. By taking the time to get to know your clients and their unique circumstances, you'll be better equipped to meet their needs and close the sale.

Educate the consumer

Educating the consumer is a critical part of selling life insurance. It is important to never underestimate or overestimate how much or how little a prospect knows about your products. The focus of consumer education should be on the benefits of the product rather than your achievements as an agent.

Before making a sale, your prospects have to believe that they need what you are offering. This will significantly impact closing a deal. Part of educating consumers is making them think about the future and what will happen if they don't have enough coverage to protect themselves and their families during challenging times. Dealing with grief and financial concerns simultaneously won't be easy for any family.

To educate your consumers effectively, you need to understand their concerns and counter their objections. Here are some key points to consider:

• Understanding their perspective: Recognize that six out of ten Americans value life insurance for protecting their family's security. Address their concerns and show them how your solution meets their needs.
• Perceived Affordability: Many people think life insurance is too expensive, and they can't afford it due to other financial obligations. Combat this perception by providing accurate information about the cost and affordability of your policies.
• Future Worries: Consumers often worry about the future, especially regarding the country's economy and their retirement savings. Address these worries by highlighting the role of life insurance in retirement planning and financial security.
• Preference for In-Person Purchase: While consumers may research online, they often prefer making the actual purchase in person, face-to-face. Ensure you are comfortable with this approach and can provide the human connection they seek.
• Lack of Understanding of Cost Calculation: Most consumers know that age and health affect life insurance costs. However, they may not be aware of other factors like family history, driving records, and hobbies. Educate them on these factors to help them make informed choices.

Remember, storytelling is a powerful tool. Share relatable stories and examples of how life insurance has helped others. Discuss specific insurance application scenarios, such as parents who left small fortunes to their struggling children or individuals who missed opportunities to protect their families. Give your prospects a chance to consider the benefits of getting life insurance.

Tell relatable stories

Telling relatable stories is a powerful tool for selling life insurance. It is a way to create an emotional connection with your client, helping them understand the importance of the product and how it can benefit them. People are more likely to remember stories – 63% of people, in fact, as opposed to only 5% who remember statistics.

When telling these stories, it is important to keep them grounded in reality and incorporate real-life examples or case studies. You could discuss specific insurance application examples, such as inspiring stories of parents who left their struggling children small fortunes because they had life insurance. You can also share stories of families who faced challenges after the death of a loved one without adequate insurance coverage.

If you are new to the industry and don't have your own stories to share, you can use real-life stories from other sources, such as the Life Happens website, which features stories of families who benefited from life insurance protection. Alternatively, you can ask your client to share their own stories or experiences related to the topic. For example, if you are pitching cancer insurance, ask if they have any friends or family members who have dealt with cancer and let them tell their story.

• Auto-Draft Payments: An independent insurance agent, Jeff Greenwell, shares a story about a friend whose Medicare Supplement policy had lapsed due to non-payment while he was bedridden and receiving dialysis treatments. This story persuades clients to set their payments on auto-draft to avoid policy lapses during illness.
• LTC Costs for Farmers: Jeff Sams, CEO of New Horizons, pitches long-term care insurance to farmers by relating the cost of care to the value of an acre of farmland per month. This helps farmers understand the potential financial impact and the importance of having adequate coverage.
• Experimental Cancer Drug Costs: Michael Sams, a 13-year insurance veteran, shares a story about a client who had to pay $4,700 per month out of pocket for an experimental cancer drug that was not covered by Medicare. This example helps clients understand the value of having a cancer plan to cover unexpected expenses.
• Cancer Costs for the Family: Chase Gruening, an independent agent, sells cancer plans by sharing stories of clients who cashed in on their policies. For example, a client with brain cancer whose daughter had to take time off work and incur travel expenses to care for her. This story highlights the unexpected costs that families may face when a loved one is diagnosed with a serious illness.

Discuss costs in a positive light

When discussing the cost of life insurance with a potential customer, it is important to remember that the conversation doesn't have to be negative. There are ways to present the topic in a positive light and help the customer see the value in the product.

Firstly, it is helpful to focus on the monthly amount when talking about payments, rather than the total cost. Breaking the cost down into manageable monthly payments can make the insurance seem more affordable. For example, a $250,000 term life insurance policy for a healthy 20-40-year-old typically costs between $24 and $29 per month. Presenting the cost in this way can help the customer see that the insurance is within their budget.

Additionally, you can emphasise the savings that the customer will benefit from in the long run. By discussing the yearly amount of savings, the customer can see the value of the insurance. For instance, a 20-year, $250,000 term life insurance policy for a healthy 30-year-old costs under $200 per year on average. Presenting the savings in this way can help the customer understand that they are getting a good deal.

It is also beneficial to remind the customer that life insurance is based on sharing the risk of death across a large group of people. This means that the cost of the insurance is spread out, and the customer is getting coverage at a reasonable rate. The customer is essentially investing in their future security and the protection of their loved ones.

Moreover, you can highlight that the cost of life insurance is generally affordable. According to the 2023 Insurance Barometer Study, most people overestimate the cost of life insurance. By providing a quote and breaking down the monthly payments, you can show the customer that the insurance is more affordable than they may think.

Remember, the key is to focus on the benefits and value that life insurance provides. By presenting the costs in a positive and manageable light, you can help the customer see that the insurance is a worthwhile investment for their future.

Frequently asked questions