Strategies For Independently Selling Life Insurance Successfully

Selling life insurance can be a rewarding career path for those with the right skills, interests, and personality traits. It offers flexible work, a high earning potential, and the opportunity to change people's lives. However, it also comes with challenges, including a high-pressure work environment, unpredictable income, and the difficulty of finding leads. To sell life insurance, you'll need to meet licensing requirements, establish a home office, create a lead generation strategy, and develop strong sales and communication skills.

Get licensed

To sell life insurance independently, you will need to obtain a license. The specific requirements vary by state, but the general process involves:

Completing a pre-licensing course

Complete a pre-licensing insurance course to gain a basic understanding of local and national laws, industry regulations, insurance principles, and ethics. The required credit hours vary by state but typically range from 20 to 40 hours. This step will help you prepare for the licensing exam and ensure you are well-versed in the fundamental concepts of selling life insurance.

Passing the state licensure exam

The next step is to pass the life and health licensure examination administered by your state's insurance regulatory department. This exam assesses your knowledge of different life and health insurance concepts, laws, and regulations. The passing score is usually between 60% and 70%, depending on your state. Make sure to allow sufficient time to prepare for this exam, as it is an essential step in obtaining your license.

Completing a background check

Some states require individuals to undergo a criminal background check as part of the licensing process. This step helps ensure the integrity and security of the insurance industry. By conducting background checks, state authorities can make informed decisions about an applicant's suitability for a license.

Applying for a license

Once you have passed the licensing exam and fulfilled any other requirements, you can apply for your license. This typically involves submitting an application, paying a small fee, and providing any necessary documentation to your state's insurance department. After your application is approved, you will be assigned a unique National Producer Number (NPN) that identifies you in the national producer database and authorizes you to sell life insurance in your state.

Obtaining licenses in other states

If you plan to sell life insurance in multiple states, you will need to obtain the necessary licenses in those states as well. This may involve taking additional exams and fulfilling specific requirements for each state. Make sure to research the requirements for each state in which you intend to do business.

Maintaining your license

It is important to note that obtaining your license is not a one-time process. To maintain your license and stay compliant with regulations, you will need to renew it periodically and stay up to date with any changes in laws and industry standards. Each state has its own requirements for license renewal, so be sure to familiarize yourself with the rules in your state.

Develop a sales pitch

Selling life insurance is all about the pitch. It is important to present yourself well, be comfortable, and confident. Here are some tips to help you develop your sales pitch:

• Understand your customers' needs and speak their language: It is important to speak in a language your prospects understand. Avoid using slang or jargon and focus on demonstrating empathy with their situations. When you put yourself in their shoes, you can better explain how your insurance products will benefit them.
• Focus on solutions, not features: Potential clients are looking for solutions and benefits, not a list of features. Examine and understand how the features you offer solve problems so you can make appropriate solution recommendations. For example, explain how your insurance products can help safeguard their families in case of an unexpected death or injury.
• Ask thought-provoking questions: Many leads might think they don't need life insurance or are reluctant to commit due to cost. Ask questions that will get them thinking about what could happen without adequate insurance coverage. For instance, "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?"
• Build trust and focus on relationships: Trying to sell policies right away can ruin clients' trust. Focus on building relationships and establishing yourself as a trustworthy expert in your field. By being patient, you are more likely to secure long-term customers who may refer you to others.
• Dress and communicate professionally: Whether you are selling life insurance from home or in an office, it is important to dress and communicate professionally. This helps establish your credibility and expertise.
• Stay up-to-date with industry developments: Keep abreast of the latest trends, news, and updates in the life insurance sector. This will help you provide accurate and relevant information to your clients and establish yourself as a knowledgeable professional.
• Utilize digital tools and social media: Create a user-friendly website and leverage social media platforms like Facebook, LinkedIn, TikTok, and Instagram to reach a wider audience and generate leads.
• Offer free quotes and reports: Convert website visitors into leads by offering free reports or free quotes. This provides value to potential customers and helps build trust.

Remember, a successful sales pitch for life insurance involves understanding your customers' needs, building trust, and focusing on providing solutions to their problems.

Create a website

Creating a website is an essential step in selling life insurance independently. Here are some detailed instructions and considerations to help you build an effective website for your business:

Define the Purpose of Your Website:

The primary purpose of your website is not to directly sell life insurance but to generate leads. Your website should be designed to convert visitors into leads by capturing their contact information, such as their name, phone number, and email address.

Focus on Lead Generation:

Each page on your website should have a clear call to action (CTA) that encourages visitors to provide their contact details. For example, you can offer free quotes, free reports or white papers on life insurance, or other valuable resources in exchange for their information.

Optimize Your Website for Conversions:

Ensure that your website is designed with a strong visual focus on lead generation. The layout, graphics, and content should all direct visitors towards taking action and submitting their contact information. Make sure that your CTA is prominent and easy to understand.

Provide Valuable Content:

Offer informative and engaging content on your website. This can include blog posts, articles, or videos that educate your audience about life insurance, address common concerns, and provide valuable insights. This will establish your expertise and build trust with potential customers.

Simplify the Quote Process:

Make it easy for visitors to request a quote by keeping your quote form simple and straightforward. Ask for basic contact details and avoid requesting excessive personal information, as this may deter potential customers.

Integrate Calculators and Tools:

Provide online tools such as calculators to guide users through the quote process and help them understand their options. This enhances their experience and allows you to gather information about their needs, which can inform your sales strategy.

Optimize for Search Engines:

Utilize search engine optimization (SEO) techniques to improve your website's ranking on search engine results pages. This will increase your website's visibility and drive more organic traffic. Focus on relevant keywords, optimize your website's metadata, and ensure your site is mobile-friendly and fast-loading.

Leverage Social Media:

Integrate social media platforms such as Facebook, LinkedIn, TikTok, and Instagram into your marketing strategy. Regularly create and share content on these platforms to engage with your audience, drive traffic to your website, and build a community around your brand.

Remember, your website is a powerful tool in your marketing kit. By implementing these strategies, you can effectively generate leads, build relationships with potential customers, and ultimately increase your sales as an independent life insurance salesperson.

Find your niche

When starting as an independent life insurance salesperson, it's important to decide whether you want to be a specialist or a generalist. While both roles are important, choosing a niche can help you stand out in a crowded market.

Types of Niches

There are many different types of niches to explore:

• Industries: You could focus on a specific industry, such as restaurants or construction.
• Line of insurance: You can specialize in providing a specific type of insurance, such as workers' compensation coverage, professional liability insurance, or cyber insurance.
• Segments of the population: If you sell life insurance, you could focus on a specific demographic, such as women, high-net-worth individuals, or people who need affordable coverage options. You could also target alumni of a specific school or members of an organization.

Advantages of Niche Marketing

• Develop expertise: By specializing in a niche, you can gain expertise and save time on research, helping you avoid mistakes and establish yourself as a trusted expert in your field.
• Gain word-of-mouth business: When you establish yourself as the best agent in your region for a specific niche, you are likely to receive a lot of word-of-mouth business and referrals.
• Reduce competition: Focusing on a niche market allows you to compete with a smaller pool of agents, making it easier to stand out and differentiate yourself.
• Grow your network: Specializing in a niche insurance market makes networking easier as you are offering something unique, incentivizing people to connect with you.

Choosing the Right Niche

When selecting a niche, it's important to consider your knowledge, experience, and connections in that area. You should also research the potential profitability of the niche, the level of competition, and whether the niche is growing or shrinking.

Establish your home office

Establishing a home office is a crucial step in setting yourself up for success when selling life insurance independently. Here are some detailed instructions to help you establish an effective home office setup:

Choose a Dedicated Workspace

Firstly, select a quiet and private space in your home where you can set up your office. This space should be free from distractions and ideally located in a quiet area of your home. It is important to have a dedicated workspace to help you stay focused and organised. If possible, choose a room with a door that you can close to minimise interruptions during work hours.

Equip Your Office with Essential Technology

Invest in a good computer or laptop, a reliable high-speed internet connection, and a printer. These are essential tools that will enable you to work productively and meet with clients virtually. Additionally, consider purchasing a separate work phone, ideally a smartphone with excellent reception, to maintain clear communication with clients and colleagues.

Enhance Your Virtual Meeting Setup

As you will be conducting most of your business virtually, ensure your video conferencing software is up to date and user-friendly. Test your audio and video equipment regularly to avoid any technical glitches during client meetings. A good practice is to have a backup plan in case of technical difficulties, such as a reliable mobile phone with video calling capabilities.

Check for Business Licenses and Permits

Contact your local business department to inquire about any specific business licenses or permits required for operating a business from your home. Some states may have certain regulations or requirements, especially if you plan on meeting clients at your residence. It is important to ensure you are compliant with all necessary licenses to avoid any legal issues.

Create a Professional Environment

Even though you are working from home, it is important to maintain a professional image. Ensure your dedicated workspace is tidy, organised, and free from clutter. Create a comfortable and welcoming atmosphere for any clients you may meet with, and consider adding some personal touches that reflect your professionalism and expertise.

Establish Work-Life Boundaries

Working from home can blur the lines between your professional and personal life. Set clear boundaries to maintain a healthy work-life balance. Communicate your work hours to family members or housemates and request that they respect your work time. Similarly, allocate specific time for personal activities and make sure you disconnect from work during those periods.

By following these steps, you will be well on your way to establishing a functional and productive home office setup, which is essential for your success as an independent life insurance salesperson.

Frequently asked questions