Life Insurance Sales: Your Guide To Getting Hired

Life insurance sales can be a challenging but rewarding career path. It offers strong earning potential, flexibility, and the opportunity to make a positive impact on people's lives. However, it also comes with difficulties, including a high rejection rate, long sales processes, and the need to find customer leads independently. To become a life insurance salesperson, you must be licensed, which requires completing pre-licensing education, passing an exam, and meeting other requirements, such as background checks, set by your state. Once licensed, you can choose to work for a company or start your own business, with the latter providing more flexibility but also requiring additional steps, such as setting up a home office and familiarising yourself with technology for e-applications. Ultimately, a career in life insurance sales can be lucrative and fulfilling, but it requires resilience, perseverance, and an ability to build strong relationships with clients.

Learn about the different types of life insurance

Life insurance is a complex product with many different types of policies available. Here is a detailed overview of the different types of life insurance products:

Term Life Insurance

Term life insurance is a temporary coverage option that provides a fixed payout if the insured person dies within a specific period, such as 15, 20, or 30 years. It is typically the most basic and easy-to-understand type of life insurance policy. Term life insurance usually has lower premiums compared to permanent life insurance and does not build cash value over time. It is often the most affordable option and is sufficient for most people. However, if the insured person outlives the policy period, there is no payout to beneficiaries.

Permanent Life Insurance

Permanent life insurance provides coverage for the insured person's entire life as long as the premiums are paid. This type of insurance can build cash value over time and usually has higher premiums than term life insurance. There are different types of permanent life insurance policies:

Whole Life Insurance

Whole life insurance is a straightforward permanent coverage option that lasts for the insured person's entire life, with a fixed premium, guaranteed death benefit, and a fixed interest rate on the cash value of the policy. The cash value won't affect the death benefit, but if it grows to equal the death benefit amount by a certain age, the policy will be terminated, and the coverage amount will be paid out. Whole life insurance is generally more expensive than term life insurance.

Universal Life Insurance

Universal life insurance is a flexible permanent coverage option that allows the insured person to adjust the premium payments and death benefit value within certain limits. The cash value of a universal life policy grows at a variable interest rate, and the policy can eventually pay for itself through the built-up cash value. The death benefit and cash value growth are not guaranteed. Universal life insurance is typically less expensive than whole life insurance.

Variable Life Insurance

Variable life insurance is a riskier permanent coverage option where the cash value is tied to investment accounts such as bonds and mutual funds. The cash value can rise or fall based on the performance of these investments, providing the potential for considerable gains but also exposing the policyholder to higher risk. Variable universal life insurance is a hybrid policy that allows for adjustable premiums.

Final Expense/Burial Insurance

Final expense insurance, also known as burial insurance, is a type of whole life insurance with a smaller death benefit designed to cover funeral costs, burial expenses, and other end-of-life expenses. It often has a guaranteed death benefit ranging from $5,000 to $25,000 and is more accessible to older individuals or those with pre-existing health conditions as a medical exam is usually not required.

Other Types of Life Insurance

There are also other types of life insurance policies and add-ons available, including:

• Group life insurance: Offered by employers as part of workplace benefits, with basic coverage often provided for free and the option to purchase supplemental coverage.
• Mortgage life insurance: Covers the remaining mortgage balance and pays out to the lender if the insured person dies.
• Credit life insurance: Pays off a specific loan, such as a home equity loan, upon the insured person's death.
• Accidental death and dismemberment insurance (AD&D): Covers death or serious injuries, such as loss of limbs or sight, resulting from an accident.
• Joint life insurance: Insures two lives under one policy, with options for first-to-die or second-to-die payouts.

Develop good customer service skills

To get a job selling life insurance, you'll need to develop excellent customer service skills. Here are some tips to help you do that:

Understand the importance of customer service

Good customer service is crucial as it directly influences customer satisfaction, loyalty, brand reputation, and revenue. It can turn simple questions or challenging situations into opportunities to gain customers' trust and create positive experiences.

Develop a customer-centric mindset

Understand that the customer is the lifeblood of the business. Remind yourself that it is the customers who pay your salary, award bonuses, and are responsible for shareholder contentment. Foster a culture that prioritizes the customer and their satisfaction.

Focus on solving problems

When a customer approaches you, they may not know exactly what they want, but they have a problem that needs to be solved. Demonstrate how your product or service can address their issue. Focus on offering solutions rather than listing features.

Be an active listener

Give your full attention when a customer is speaking, and refrain from interrupting. Paraphrase what they've said to validate that you've understood them. Active listening helps you gather relevant information and address their needs accurately and quickly.

Communicate clearly

Use straightforward language and stay focused on the customer throughout the conversation. Be positive and enthusiastic, and express yourself using vocabulary that is easy for the customer to understand. Avoid technical jargon.

Show empathy

Understand and respond to customers' emotions. Acknowledge their feelings and let them know you hear and understand them. Empathy helps build trust and strengthens the relationship.

Be adaptable

Adapt to changing circumstances and be willing to collaborate with your team. Ask for help when needed, and provide support to your colleagues.

Manage your time effectively

Prioritize tasks and allocate time efficiently to minimize customer wait times and reduce frustration.

Continuously improve

Stay up-to-date with the latest developments in customer service. Participate in continuous training and professional development opportunities, such as workshops, webinars, industry conferences, or online courses.

Utilize technology

Familiarize yourself with the latest technology used in customer service, such as customer relationship management (CRM) systems and omnichannel support. This will help you provide seamless and personalized service to your customers.

Seek feedback

Regularly seek feedback from customers and peers to identify areas for improvement. Actively listen to their suggestions and make the necessary adjustments.

Build your product knowledge

Understand the features, benefits, specifications, and common issues of the products or services you're selling. This will enable you to address customer inquiries and provide accurate information.

Remember, developing good customer service skills is an ongoing process, and it will greatly contribute to your success in selling life insurance.

Get licensed

To sell life insurance, you'll need to be licensed. The specific requirements vary by state, but here are the general steps to obtain a license:

• Complete a pre-licensing insurance course: This course will cover topics such as policy types, industry regulations, insurance principles, and ethics. The required credit hours differ by state but typically range from 20 to 60 hours.
• Pass the state licensure exam: You must pass the life and health licensure examination administered by your state's insurance regulatory department. The exam assesses your knowledge of insurance concepts, laws, and regulations. The passing score is usually between 60% and 70%.
• Complete a background check: Some states require a criminal background check as part of the licensing process.
• Apply for a license: After passing the exam, submit your fingerprints, pay a fee, and designate an Errors and Omissions insurance provider to your state's insurance department. Once approved, you'll receive your license and a National Producer Number (NPN), which allows you to sell life insurance in your state.

It's important to note that the licensing process can take time and effort, but it's a crucial step to start your career in life insurance sales. Make sure to review your state's specific requirements and regulations to ensure you meet all the necessary standards.

Create a lead generation strategy

Lead generation is one of the most challenging parts of the job for life insurance agents. Here are some ideas for creating a lead generation strategy:

• Target a buyer persona: Develop a clear picture of your ideal customer, including age, gender, marital status, family composition, and income level. Then, dive deeper into their financial concerns, life goals, and motivations for buying life insurance. Use this information to tailor your messaging, offers, and communication channels.
• Find prospects on LinkedIn: Optimize your profile, join relevant groups, use advanced search to find leads, publish valuable content, and engage with other posts. When reaching out to leads, always personalize your message.
• Offer a free consultation: On your website, offer a free, no-obligation consultation to demonstrate your value to leads. Make signing up quick and easy with a prominent call-to-action (CTA) and scheduling tool integration.
• Run Facebook Lead Ads: Use Facebook's detailed targeting options to reach leads based on granular targeting. Create ads that speak to your target persona's needs and challenges, and offer a compelling reason to click, like a free resource or consultation.
• Build a content marketing campaign: Focus on answering your persona's top questions and concerns through blog posts and articles, interactive quizzes and tools, and case studies. Optimize your content for relevant keywords to boost your search engine rankings and drive organic traffic.
• Collect leads from listing sites and directories: Get your business on popular online directories like Google My Business and Yelp, and encourage satisfied customers to leave reviews.
• Use social media: Share a mix of educational content, customer stories, and personal updates on the platforms your leads use most. Use social listening to find conversations related to life insurance, and jump in when you can offer helpful advice.
• Optimize landing pages for lead conversion: Ensure your landing pages have a strong, benefit-focused headline, concise copy explaining your offer's value, eye-catching visuals, a prominent form to capture lead info, customer testimonials and trust signals, and a clear CTA.
• Create video content: Make educational videos on types of life insurance and their benefits, or promote customer testimonials and case studies. ‘Ask the expert’ videos answering common questions are also popular. Keep your videos short, engaging, and focused on providing value, and always include a CTA.
• Run a referral program: Provide exceptional service worth talking about, and make referring easy with a transparent process and shareable assets. You can also offer incentives like premium discounts or gift cards for successful referrals.
• Incorporate chatbots and live chat features: Adding chat to your website gives leads instant answers and gathers their info. Just make sure someone is available to take over if the chatbot gets stuck.
• Work with a trusted lead generation company: If building an in-house system isn’t feasible, consider outsourcing to a company that specializes in lead generation for the insurance industry.

Be prepared for rejection

Selling life insurance can be a challenging career path, and rejection is an inevitable part of the job. It's important to be aware of this and develop strategies to deal with rejection effectively. Here are some tips to help you prepare for and handle rejection when selling life insurance:

Understand the Challenges

Recognise that selling life insurance is a highly competitive field, and rejection is common. People are often reluctant to discuss or even consider their mortality, making it a difficult product to sell. You will likely face many "nos" before you get a "yes," so it's crucial to have resilience and persistence.

Develop a Thick Skin

Selling life insurance can be disheartening, especially at the beginning of your career. You will need to develop a thick skin and not take rejections personally. Remember that rejection is part of the sales process, and it doesn't reflect on your worth as a person.

Focus on Your Pitch

Work on refining your sales pitch and communication skills. Ensure you present yourself well, speak in a language your prospects understand, and demonstrate empathy. Focus on providing solutions rather than listing features. Ask questions that help potential clients understand their needs and how your product can benefit them.

Learn from Rejection

Try to view rejection as an opportunity to learn and improve. After each rejection, reflect on what you could have done differently. Ask for feedback whenever possible to identify areas for improvement. Use this information to refine your sales approach and increase your chances of success in the future.

Maintain a Positive Attitude

Stay positive and don't let rejection discourage you. The agents who succeed are those who can ride out the unproductive stretches. Remember that each "no" brings you one step closer to a "yes." Maintain a positive mindset and don't give up.

Explore Other Options

If you're facing repeated rejections, consider exploring other companies or policy options. Different insurance companies have varying standards for insurability. Getting rejected by one company doesn't mean you're not insurable. You can also look into different types of policies, such as "guaranteed acceptance whole life insurance," which doesn't require medical exams or allow rejections for medical reasons.

Remember that rejection is an inevitable part of selling life insurance, but it doesn't have to define your career. By staying resilient, refining your skills, and exploring alternative options, you can improve your chances of success and build a rewarding career in life insurance sales.

Frequently asked questions