Choosing a life insurance policy is a personal activity for most consumers and one of the hardest to approach for many agents. No one is happy to talk about their death, and there are many misconceptions amongst customers regarding life insurance. Over half of customers are unsure benefits from insurance are not taxed. Many don’t know cash value from permanent life insurance may be utilized to assist fund college educations, supplement retirement income or meet other financial needs.
A life insurance agent needs to believe in the product, be excited about selling, display resilience, and be a good communicator. It might be tough to market life insurance to a person who, in all likelihood, won’t see the return themself. Agents must be able to transmit life insurance information in a fashion in which your prospects understand and see the benefit in acquiring. Once you gain consumers, your insurance business can start relying on premium renewals to bring in revenue. So, how do insurance agents attract clients?
Most independent insurance agents remember their early years as many long hours and difficult times while they build up their portfolios. But the problem of locating clients doesn’t necessarily lessen over time—37 percent of agents name “getting new business” as their top issue.
Even if you’ve been selling insurance for years, you need to bring in new business to boost your revenue and replace clients who leave policies. There is a lot of emotion involved in selecting life insurance. We’ve highlighted the most effective strategies for encouraging folks to get life insurance below.
EDUCATE YOUR CUSTOMERS ON LIFE INSURANCE
The first stepping in selling life insurance is convincing your prospect that they need what you are selling. If you can’t get someone to believe in the necessity for life insurance, you won’t make a sale, regardless of the quality of your product pitch. Educating clients and prospects about life insurance is a fantastic opportunity and will go a long way in convincing options that they need your product.
You might have heard the sayings, ‘save for a rainy day,’ or ‘invest for your future,’ both are appropriate for selling life insurance. As part of educating your clients, it is helpful to get them to think about the future and what will happen to their families after they are gone. You might start by asking these questions:
- How will your family support itself without your income?
- Will your family suffer financially if they have to pay for your end-of-life arrangements?
- Will you gain from the peace of mind that comes with knowing that your loved ones will not be burdened?
Describe the advantages of purchasing the adequate life insurance coverage available. Although life insurance is one of the most critical types of protection, it gets the least amount of attention. When it comes to acquiring life insurance, people have a lot riding on their decision. About a third of people who don’t carry life insurance don’t because they don’t want to think about mortality. A seasoned insurance salesman knows how crucial empathy is during the life insurance sales process.
Give your buyers a comprehensive description of the advantages of the best life insurance policy you believe in. Avoid adopting industrial jargon because your audience will have problems understanding you and may lose interest.
When your client is getting married, you should aid them with their wedding planning. When a person marries, it is one of the most memorable and significant times in their life. We’re not just talking about the wedding, which is often a significant financial outlay, but also about the changes that occur after the wedding, like pooling resources and making plans for the future as a couple. To buy a new house, young couples may decide to apply for a loan together, which needs the signature of loan documents by both parties.
If one of the partners dies, the other party is usually left with repaying the loan. To properly prepare your clients for the unlikely chance that anything terrible occurs, you must tell them of all possible options. When clients are ready to establish a family, they should know that life happens in a definite order: marriage comes first, then a baby in a carriage.
Children will always be a source of joy for you and your family, but like with your clients, you must be financially ready before bringing them into the world. Having a child is expensive, and sometimes even two wages are insufficient to sustain a child. Now consider what would happen if one of your child’s parents died suddenly.
The thought is frightening, yet it does occur. Having life insurance policies in place gives peace of mind to the surviving parent by providing a little financial cushion to aid with the child’s upkeep and education. Knowing that a baby is on the way may be an excellent opportunity to gently and politely remind your clients of this fact.
FOCUS ON THE FUTURE
Deciding on how much life insurance is needed can be more challenging than a person initially expects. Help your customer rethink the less-thought-of-expenses that come along with life insurance. Most people aim to pay the cost of their house or have a set monetary number in mind but remind them about other expenses they won’t be able to contribute to, such as their spouse’s retirement savings or a child’s future wedding.
Given how tight money is for many individuals, it can be hard to encourage clients to think about their future. While nearly 95 percent of participants in a recent survey stated that the ability to save enough to retire comfortably was a top priority when planning for the financial future, a little fewer than half of those respondents have permanent life insurance with a financial professional. The idea is to assist people in comprehending how financial decisions they make today will affect their future wealth. Once customers grasp the significance of long-term investments, they are ready to invest in life insurance. Confidence plays a significant influence on an agent’s ability to deliver the right message to the person. Insurance agents need to be able to customize their notifications to their audience.
Emphasize adaptability.
Life insurance is a large category of products that encompasses many different forms of coverage. Life insurance, in particular, is available in a wide range of premiums and coverage options. When a customer displays signs of hesitance, underline your company’s capacity to work with people of different ages and backgrounds. There are policies for any condition and budget, whether your consumer is buying life insurance over 50 or wishes to insure their young family.
Don’t forget to go over all the life insurance facts with them, including whether or not they need to consult a doctor after completing their application. Clear away the ambiguity surrounding life insurance and provide it to clients so that they can comprehend and support it. Most people haven’t bought the most significant life insurance yet since they don’t know how or are uninformed of the proper procedures to take. Help the buyer cut through the vocabulary and get to the substance of why families want life insurance in the first place.
