Life insurance is a difficult industry to enter and be successful at. Being a life insurance sales agent can be challenging, but it is a personally and financially rewarding career. In 2020 alone, there were 409,950 life insurance sales agents in the United States, which means there was one life insurance agent for every 1,234 people. this can make competition among industry professionals fierce.
You’ve likely spent a lot of time learning and honing your skills in selling life insurance policies over the years. If you’re looking to brush up on your life insurance sales skills, we’ve got a few tips that can help.
why sell life insurance?
Selling life insurance is not for everyone! however, you can choose this career if you are ready to take on the challenges it presents. In 2020, the median salary for life insurance agents was $52,180, while top salespeople with outstanding sales skills earned more than $127,840 during the same period.
These numbers show that life insurance marketing is a rewarding career with high earning potential. The low barrier to entry in the life insurance business makes it very attractive to millennials in particular. You can become a certified life insurance professional without earning a degree.
In addition, you can benefit from numerous advantages that can encourage you to continue your career in the insurance company.
- benefits include:
- high commission
- significant career growth opportunities
- flexible hours
- continuous income with renewals
how to sell life insurance successfully
The first step is to learn the fundamental rules and regulations to become a successful life insurance agent. Learn about state-specific insurance licensing requirements and make every effort to obtain a life insurance license. Visit the National Association of Insurance Commissioners (NAIC) website to explore more about state insurance exam pass rates.
lean on references
Your insurance company will provide you with clues; however, you can get lower commissions. That’s why referrals are such an ideal option. Contact your clients for references. If you already have happy customers, ask them to recommend your business to friends, family, and co-workers. You can generate life insurance leads and nurture them over time with the right knowledge, skills, and experience.
stay up to date with changes
If you’re an independent agent, you’ll have to find new leads on your own. cold calling can be an effective sales strategy that helps in lead generation. keep in mind that the needs of your current customer will change as their lives change. life-changing events such as marriage, divorce, and having children can change your life insurance needs.
Many of your customers may have started with term life insurance, so don’t forget to revisit policyholders after the first year of purchase to discuss the benefits of purchasing a whole life insurance plan. Help your clients understand the different types of life insurance plans, such as term life insurance, whole life insurance, or universal life insurance.
understand your target audience
once you enter the insurance industry with a set of key skills, it’s time to study and understand your market. Familiarize yourself with your audience’s key goals, challenges, and expectations, and understand how your product can solve them. Knowing who your target audience is can help you customize your marketing strategies.
For example, the key audience for term insurance is buyers in the 25-45 age group. this is the age group in which major life events take place, such as getting married, buying a home, building families, and more. With a higher debt-to-income ratio, this age group generally has lower net worth than their older buyers.
As a life insurance agent, knowing this data can give you a comprehensive understanding of market trends and demographics. This will help you better understand your buyers, such as what they are looking for and how you can provide them with the best life insurance policy to fit their needs.
Before you sell your product to customers, thoroughly learn all the features, benefits, and other aspects. Instead of exploring all the products the company offers, opt for specialization. consider specializing in one product, as this gives you a deeper understanding of the product, competitors, and target market pain points.
Insurance representatives are more likely to sell with confidence when they specialize in a few niche products. master a product and be prepared for any questions your client may ask you before buying the policy. With a deep understanding of a product, you can better help and convince buyers to buy it right away.
Your client may ask you about the difference between term life insurance and permanent life insurance policies. So, before they move on to the next question, you can explain to them that the first question may seem cheap, but the benefit of buying permanent life insurance is that you gain cash value and other benefits, all because you choose to specialize.
try cold calling
Cold calling is a common sales technique in which the sales agent contacts the potential buyer to gauge their interest in purchasing a life insurance policy. For effective calls, create an efficient insurance script to use during calls to engage prospects early on and keep the conversation moving. Creating insurance scripts takes a lot of work, but the results are rewarding.
Establish credibility and try to build rapport as you go on the outbound call. Understand your prospect’s pain points and align your offers with your customer’s expectations to spark interest. During your first call, you shouldn’t expect your lead to convert, so you’ll need to nurture the lead seamlessly through consistent conversion efforts.
Build trust by reviewing your client’s personal life insurance goals, as this is crucial to a cordial agent-client relationship. Building relationships with your customers will open the doors to more upselling and cross-selling opportunities as they are likely to come to you for all of their insurance policy buying needs.
invest in continuous learning
Life insurance is a dynamic industry that is rapidly changing with changing lifestyles and changing industry trends. stay current with the industry and continue to expand your knowledge to become a trusted source for your customers. theoretical knowledge about various insurance products is not enough; Emphasize real life examples.
Reading books, attending seminars, exploring training material, linking on LinkedIn, or learning social media selling tips can help you gain a deeper understanding of various life insurance policies, and hands-on experience will help. generate more leads. As you mature as a life insurance agent, you tend to learn things through experience that no book or tutorial can offer.
Also, learn helpful tools to stay current and set yourself up for success. Learn how some of the popular life insurance CRM platforms help keep track of clients while helping you manage the book of business. Learning insurance quote tools like iLife will help you build your business while generating qualified leads that streamline the sales process.
unlock the tools you need for successful sales with ilife
Managing leads and optimizing your sales process can be challenging for experienced life insurance agents. For smooth business management, life insurance agents need a tool that streamlines complex insurance sales processes.
ilife is your one-stop platform, whether you’re looking for life insurance quotes from different companies, managing clients through a crm, building a website, or client approvals.
sign up for ilife and increase your insurance sales by creating an online presence.