Selling Life Insurance: Strategies For Success

Selling life insurance is a challenging career path, with a high burnout rate and a competitive environment. To be successful, agents need to be able to handle rejection, have excellent communication skills, and be comfortable discussing death. They also need to be self-motivated, as most are paid on a commission-only basis and are classified as independent contractors without a base salary or benefits. However, for those who can persevere, there is the potential for a high income and the flexibility of self-employment. This article will explore the skills, traits, and strategies needed to be successful in selling life insurance.

Develop excellent customer service skills

Developing excellent customer service skills is paramount to success in selling life insurance. This involves a combination of relationship-building, communication, and problem-solving skills.

Relationship-building is key. Selling life insurance is a relationship business, and successful agents create a foundation of friendship with their clients. This involves making connections with target prospects, selling yourself, and establishing a real friendship. By doing so, you position yourself as a trusted advisor and open up more sales opportunities and referrals.

Communication skills are also essential. You need to be able to communicate clearly and effectively, both verbally and in writing. Practice explaining your product and preparing retorts to common objections. Confidence is crucial here; professionals are highly articulate and able to tailor their messages to their audience.

Additionally, focus on solving your customer's problems. Demonstrate how your product can address their specific needs and solve their issues. This will increase your chances of making a sale.

Excellent customer service also involves maintaining high energy levels and a positive mindset, especially when dealing with rejection. Life insurance sales can be a grind, and you need to be motivated and resilient to handle the constant rejection and difficult sales process.

Lastly, always strive to provide peace of mind to your clients. Life insurance is a unique product that provides financial security to beneficiaries in the event of a loved one's passing. As an agent, you play a vital role in helping families through difficult times by providing financial support.

Embrace rejection

Selling life insurance is a challenging career path, and rejection is a significant part of the job. If you want to be successful, you must learn to embrace rejection and not let it get under your skin.

The life insurance industry is highly competitive, and the burnout rate for sales agents is high, with over 90% of new agents quitting within the first year. Many factors contribute to this, but a significant one is the difficulty of finding prospects and leads. Cold-calling and door-knocking are still common practices, and even the best salespeople in the world hear "no" far more often than "yes".

When selling life insurance, you are asking people to confront their mortality and plan for their own death. This is a difficult topic for many people to discuss, and you may find that potential customers hang up the phone or shut the door in your face before you can even begin your pitch. It is crucial to remember that this is not a reflection of your abilities or worth.

To be successful in this industry, you must develop a thick skin and not take rejection personally. It is important to maintain your energy levels, motivation, and stamina, as you will need to seek out new opportunities constantly and persevere in the face of frequent rejection.

If you can embrace rejection and view it as a normal part of the sales process, you will be well on your way to a successful career in life insurance sales.

Focus on solving problems

When a customer approaches you, they might not know what they want to buy, but they know they have a problem that needs to be solved. If you can demonstrate how your product can solve their problem, you're more likely to make a sale.

For example, if a client has a young family and is looking to expand, you could explain how the policy is structured with a new baby in mind. This would help the client understand the benefits attached to the agreement and the new sense of safety and security offered to their family.

Another example would be to ask questions that get the customer thinking about what could happen without the proper insurance coverage. For instance, you could ask: "If you passed away, how long would your family be able to live on your savings?" or "What would happen to your job if you were permanently injured?"

By focusing on solving problems, you can make appropriate solution recommendations and increase your chances of making a sale.

In addition, building a professional network and expanding your business relationships can also help you be successful in selling life insurance. Connect with more experienced agents who can mentor you or provide advice. As you build your network, you will find that these relationships can help you expand your business and secure more clients.

Create a sense of urgency

Creating a sense of urgency is a crucial aspect of selling life insurance. Here are some strategies to achieve that:

Highlight the importance of financial security:

Explain to your clients that life insurance is not just another bill but a vital tool to secure their family's financial future. Emphasize how it can provide peace of mind and protect their loved ones in the event of an unexpected death.

Discuss the impact of unexpected death:

Help your clients visualize the potential consequences of not having adequate coverage. Ask thought-provoking questions such as, "If something happened to you, how long could your family maintain their current lifestyle?" or "What would happen to your family's financial stability if you were no longer here?"

Explain the benefits of acting now:

Communicate the advantages of purchasing life insurance at their current age and health status. Highlight the fact that premiums are typically lower when clients are younger and healthier, and that locking in a good rate now can save them money in the long run.

Provide real-life examples:

Share stories or case studies of individuals who benefited from having life insurance. For instance, you could say, "One of my clients, a young father, recently passed away unexpectedly. Thanks to his life insurance policy, his family was able to stay in their home and maintain their standard of living."

Offer limited-time incentives:

Emphasize the uncertainty of the future:

Help clients understand that none of us know what tomorrow holds. While it's uncomfortable to think about, emphasizing the unpredictable nature of life can encourage clients to take action. You could say, "We don't like to think about it, but the truth is, none of us are guaranteed tomorrow. That's why it's so important to be prepared."

Remember, when creating a sense of urgency, it's essential to maintain a balanced approach. Be persuasive without being pushy, and always ensure that your clients feel respected and understood.

Build a professional network

Building a professional network is essential for success in selling life insurance. Here are some strategies to help you build a strong network:

• Focus on relationship-building: Selling life insurance is a relationship business. It's important to build connections and create a foundation of friendship with your clients. This will not only lead to more sales but also generate referrals. Remember, it's about building relationships, not just making sales.
• Utilize your warm market: Start by reaching out to your friends, family, and sphere of influence. They are more likely to listen to your sales offer and do business with you. This can also lead to easier referral generation, helping you expand your network.
• Introduce yourself and your work: When approaching your warm market, introduce them to what you do rather than trying to sell them something. Assure them that your focus is to explain the kind of work you do. This reduces tension and makes them more receptive to your message.
• Ask fact-finding questions: During your interactions, ask questions to learn more about your prospect's needs and see if your life insurance product can help them. Do this in a consultative and educational way, without using hype or high-pressure sales tactics.
• Build value: Focus on building value for your prospects by understanding their needs and tailoring your sales approach accordingly. This will increase your chances of making a sale and establishing a long-term client relationship.
• Seek referrals: Referrals are a powerful way to grow your network. Ask for referrals from your warm market, even if they don't end up buying from you. Their recommendation can lead to new prospects and potential clients.
• Connect with experienced agents: Reach out to more experienced agents in the industry and seek their guidance. They can mentor you, provide advice, and help you navigate the challenges of selling life insurance. This will also help you expand your professional network.
• Join industry organizations: Consider joining industry associations or groups where you can connect with other professionals in the field. This will allow you to learn from others, stay updated on industry trends, and potentially collaborate with like-minded individuals.
• Attend networking events: Participate in insurance industry events, conferences, and workshops to meet potential clients and expand your network. These events provide opportunities to connect with others in the field and build valuable relationships.
• Utilize social media: Create a professional online presence on platforms like LinkedIn, where you can connect with other professionals, join industry groups, and showcase your expertise. This can help you reach a wider audience and establish yourself as a trusted advisor.

Remember, building a strong professional network takes time and effort. Focus on cultivating genuine relationships, providing value, and seeking mentorship from experienced individuals in the industry. This will contribute to your long-term success in selling life insurance.

Frequently asked questions