Selling life insurance is an excellent career option for many individuals. The median wage for agents in 2020 was $52,180, while the top 10 percent of agents earned over $127,840 during that time.
With such high potential earnings, it makes sense that so many people gravitate toward this career path. However, it's imperative to understand that those earnings are directly dependent on individual performance. The following tips will help you learn how to sell life insurance and broaden your client base.
Insurance agents tend to be more successful when they master a few products upfront instead of trying to be a jack of all trades. Mastering a product means knowing more about it than your competition and providing clients with valuable insight and tips on that product.
For a deeper understanding, consider the medical field. A general practitioner learns about many different things, but that knowledge is limited in comparison to specialists. If you go to see your general practitioner, they can treat you for minor issues. However, if you have a brain or heart issue, they have to send you to a neurologist or a cardiologist — specialists in those fields. They know how to address brain or heart trouble and potentially treat life-threatening problems. As such, these specialists make a great deal more money than general practitioners.
The same holds true for life insurance agents. Those who focus on mastering one product initially tend to make more money, as they can offer more specialized wisdom and insight to potential clients.
For a greater chance of success selling life insurance, consider the following tips:
Choosing a product that falls into one of these categories can help you start your insurance career on solid footing and is often the best way to sell life insurance.
The life insurance industry is full of great product options to specialize in, such as:
Pick one or two to start with and add more later if you wish.
Any time you start a new job and go through training, you have the opportunity to ask questions. Unfortunately, it's common to have few or no questions at all during training, as it can be challenging to be aware of your knowledge gaps until they come up in practice.
For example, if you were to start a job as a server in a restaurant, you might think of a few questions while in training. However, you likely wouldn't think about the ingredients in a particular dish until a customer asks about them.
The same goes for selling life insurance. You can read all of the books and training materials you can get your hands on, but they will only teach you so much. Much of your knowledge will only come from experience.
Don't think you need to learn it all before you head out into the field. Gather all of the knowledge you can from your available materials, but know that every day is a learning experience.
Once you've chosen your area or areas of specialization, it's time to complete one of the most important life insurance selling tips: study your target market. Understand their challenges, goals, and how your product can help them.
For example, term life insurance is most prevalent in people aged 25-45 who are working their way through key life events. This is typically the age group buying homes, getting married, building families, and saving for kids' college funds. They usually have a lower net-worth than older age groups and higher debt-to-income ratios.
Knowing these facts can help you understand the market on a more personal level. It's fairly easy to see that many people in this age group worry about what would happen to their families if they passed away. A wife and mother of three, for instance, is likely concerned about whether her family could stay in their home and pay bills if she were to lose her income.
As such, she is probably looking to ensure that her spouse has everything they need to take care of these things. Insight makes it much easier to determine your target market's needs and help find potential solutions.
Consumers are often on guard when they sense a sales pitch coming on. Not many people enjoy being "sold to," so you'll need to handle your prospects with care. Don't focus on selling your insurance product. Focus instead on selling the benefits your insurance product provides.
Here's where your research from the previous step comes in handy. When you study your target market and understand their pain points, it's much simpler to determine how precisely your product can help your prospects.
Consider approaching the husband and father from the previous example. If he’s already focused on ensuring that his family is cared for, the last thing he will want to hear is that you want him to spend money on something. He's already working to save money for his family and keep it secure. If you focus on selling the product, he will probably turn away from you quickly to protect his family's money.
You will probably get much better results if you focus on what exactly that life insurance product can do for him. In this case, you might paint a picture of how term life insurance would help his family pay off their mortgage and help the kids save for college if he were to pass away.
A relatable scenario like this can help him understand how purchasing term life insurance is an investment in her family's future. And remember, always do what’s best for the prospect.
Another way to make your sales strategy more effective is to keep your sales pitch simple. Remember when you are out prospecting that your target market is not full of insurance specialists, and your presentations are not a test. You'll spend most of your pitch time prospecting to people with no insurance background and little to no understanding of complicated or technical life insurance terms.
Your prospects don't want to hear industry jargon and complex explanations. Instead, they want simplified language that clearly explains how your product will help them.
When designing your presentations and pitches, remember who your audience is. Write the language as though you're speaking to a friend. This will put your prospects more at ease and make your presentations go more smoothly.
As time goes on, you can add products to your toolbox. You'll most likely find yourself learning about more products throughout your career and adding new areas of specialization as a result. Learn and add when you can, but be sure that you master each new product thoroughly before moving on to the next one.
It's important to prospect consistently. You will not sell to every single prospect you meet, but the more you prospect, the more you will sell. Try these tips to help:
When it comes to being a successful life insurance agent, the biggest challenge is lead generation. There are several steps you can take to find quality leads:
Many life insurance companies provide their agents with leads. This can be helpful, but it also comes with a price: a lower commission. The company takes part of the money you make in exchange for giving you the lead in the first place.
You can create a website for your agency to help generate more life insurance leads, but it takes work. Having a website that converts visitors into leads requires you to do more than simply list your contact information and the products you offer. You have to provide valuable content to attract leads in the first place.
For example, you will need to write useful, engaging content (think articles like "10 Ways Term Life Insurance Benefits Your Family" or "What's the Difference Between Whole Life and Term Life Insurance?") Making this effort is worth the reward, and establishing a converting website should certainly be part of your lead generation plan. However, building the website, getting it to rank in search engines, and building a following takes time. You likely will not see the results of this effort for a while.
Social media has become a popular tool for generating leads and making sales. Unfortunately, it's similar to creating a website in that it takes time to build your following, create unique and valuable content, and attract customers.
Another useful way to generate leads is to reach out to your current clients. You can ask them for referrals (friends and family members) who might benefit from using the life insurance products you sell.
It's also important to remember that your current clients' needs will adapt as their lives change. While they may have needed term life insurance when you first started doing business, you can revisit them later to discuss the benefits of switching to a whole life plan.
Each of the tips above can provide its own benefits, but sometimes you need a helping hand when you're first starting out. Thankfully, there's a simpler way to get your life insurance career off to a strong start by buying life insurance leads.
Buying leads as an insurance agent has proven to be quite fruitful and beneficial. This is especially true when purchasing through companies that have high standards, such as Nectar. We provide the following benefits when buying insurance leads:
A Final Word
If you're committed to mastering your insurance products, generating leads, and consistently prospecting, you're well on your way to establishing an outstanding career in life insurance. Use Nectar and the tips above to give yourself a strong start.
This article reflects the features of Nectar as of the date of publication. Features are subject to change at any time. This article is meant for informational purposes only, it is not a guarantee that using Nectar will help you achieve specific business or financial results and is not intended to serve as the sole recommendation for any business financial decisions.