Selling insurance is a booming career, as increased people are coming to realize the benefits of investing in this protection for their families. But what exactly is life insurance? And how do you sell it?
What Is Life Insurance?
Life insurance can be defined as an agreement between a policy owner and an insurer that offers monetary compensation to the insured's dependents following the owner's death. There are two main types of life policies: term and permanent. Term life insurance provides coverage for a specific period (known as "term"), while permanent life insurance remains in effect until the insured's death.
Who Needs Life Insurance?
If your clients have dependents who rely on their income or assets, then they need to protect them in case something should happen unexpectedly. This way, they will be able to maintain their current lifestyle without income. If they do not have dependents, then they do not need insurance unless they want to leave funds for assets such as funeral expenses or charitable donations.
The Benefit of Term Life Policy Vs. Permanent Life Policy for Your Clients
Term life policies are less expensive than permanent ones because they only last for a specific period and do not accumulate cash value. For example, a 20-year term policy costs less than a 20-year whole life policy because your guaranteed coverage for only 20 years with a term policy but have coverage for your entire life with a whole life policy.
Term policies also tend to be more flexible than whole ones, allowing your clients to renew or convert if their circumstances change.
The Benefits of Selling Insurance as A Career
There are many benefits to being a life insurance agent. Here are some of them:
It is a growing field. More people are buying life policy every year, which means more opportunities for agents like you.
You are helping people. When you write a policy for someone, you are protecting their family from financial ruin if something happens to them. You will be able to sleep at night knowing that you have helped people protect their loved ones.
There is no ceiling on your income. You can make as much money as you want by writing more policies and getting bigger clients. The sky is the limit for how much money you can make in this profession!
What Does a Life Policy Salesperson Do?
The primary role of a life insurance salesperson is to sell individual policies to clients. This involves meeting with clients to assess their needs, explaining the diverse types of policies available, and determining how appropriate coverage is.
How To Sell Life Policy Effectively?
Selling anything comes down to one thing: building relationships with your customers/clients. This is true for any industry, whether real estate or insurance sales. People want to know they can trust the person they are working with before buying anything from them -- including policies to protect their families against tragedy!
Marketing Life Insurance
Life policy is intended to provide financial security for your family and loved ones. If you die prematurely, the insurance can provide a payout that protects your family from having to pay for the funeral, outstanding debts, and other expenses. The payout can also help maintain their standard of living after you are gone.
Selling life policies can be challenging, but it does provide an opportunity for agents to create a lasting business that can provide a healthy annual income. To make a living selling life policies, you have to be willing to engage in regular prospecting and marketing efforts.
Helping Your Clients Find the Right Life Policy
There are several types of life policies available. There are term life policies where coverage is provided for a specified amount of time. There are also universal and whole life policies that offer lifetime coverage with an investment component. An insurance broker will need to understand the different options available to match clients with the best plan for their needs.
Can You Make a Decent Living as A Life Policy Agent?
If you are looking for a new career, consider becoming a life insurance agent. It is a challenging job that can be financially and emotionally rewarding.
Life insurance agents sell policies that protect the financial future of clients' families in case the worst happens. If the insured dies during the term of the policy — which might run for 20 or 30 years, or even longer — the insurer pays a death benefit to whoever is named as a beneficiary in the policy.
The beneficiary uses this money to pay for funeral expenses, maintain their lifestyle, and meet other obligations.
How Much Does an Insurance Agent Make?
Income statistics are hard to pin down because they vary widely by company, location, and individual agents' efforts. This is not a job where you can sit back and wait for commissions to roll in on autopilot.
According to PayScale, the median annual salary for life policy insurance agents is about $50,000 — but that's just base salary (which is not common in the industry). What matters is how much you can earn from commissions and bonuses, which PayScale estimates at about $40,000 or more per year.
Tips For Selling Life Policies
The sale of a life policy is much more than the mere exchange of dollars for a piece of paper. The sale is an opportunity for you to help your client protect their family.
It is about being there when your clients need you most and helping them afford to do the things they want in life. Most importantly, it is about being able to provide peace of mind.
If you are starting in the insurance industry, there are several things you may find helpful to know about selling insurance:
Make A Good First Impression
Meeting someone new is your chance to make an excellent first impression. The same is true when you are selling insurance. You want to make a good first impression with the prospect or client at hand to have a cheerful outlook towards you and what you are selling.
This can be done through effective use of your voice, face, and body language. These three things are important because people often buy from those they like and trust, not just because of the product you sell.
Overcome The Objection of The Need:
A common objection is that people do not want to be sold on something they do not want. This section explains how life policies work and why it is needed. For example, depending on the size of the family, you could say, "An average-sized family will spend $200,000 or more on their children before they reach 18 years old.
As a parent, can you afford to leave them without insurance?" You could also use this section to go over quotes from other carriers with similar coverage. This allows you to show them how much money they could save by switching to your company instead.
Overcome The Objection of Price:
Another common objection is that insurance is too expensive. At this point, you can use your knowledge of your clients' needs and budget to present options that will work for them.
Prove You Are the Right Choice:
You have earned your client's trust by listening to their needs and presenting them with options for coverage. Now it is time to show them why you are their best choice for insurance.
Takeaway: Life insurance sales are all about making a positive first impression and showing thorough product knowledge.