How To Sell Life Insurance – 12 Tips From The Top
As a life insurance agent, you may have wondered what separates the top producers from everyone else. Or, depending on your position, you may have a few techniques that separate you from everyone else. Either way, the truth is that it’s usually the little things that create that separation. At the Insurance Squad, we have learned what makes the difference in life insurance. Whether you’re wondering how to sell life insurance more effectively or looking to hone the skills you’ve already developed, here are 12 tips from the top on how to sell life insurance that will make a huge impact on you and your life insurance sales process.
1. Always Quote the Female First
In most cases, when quoting couples, the female will come back with a lower rate than the male. This is a small but very effective action you can take to help bring the client’s guard down. You’ll often hear a sigh of relief when you’ve presented her quote, and the customer will experience a “so far so good” feeling. Conversely, by presenting the male’s quote first, you can often create a sense of sticker shock that may result in an objection, or even cause the customer to be reluctant to continue the conversation and shut down.
2. Never Present More Than Three Options
The three-option rule is a general sales rule and applies just as much in life insurance. Anything more than three options will usually cloud the customer’s mind and make it more difficult to come to a decision. More often than not, presenting more than three options may result in the classic “let me think about it” objection.
3. Always Go Over the Benefits of Their Policy
It may seem like a no-brainer to go over the policy benefits in detail, but it’s an absolutely crucial part of the insurance sales process that is often overlooked. Clarify that once your client has qualified for a particular premium, that price will NEVER change during the entirety of their policy term, whether you’re selling final expense life insurance, term, or whole life.
Also make sure to tell them that their death benefit will NEVER change, about day one immediate coverage, access to cash value in emergencies and any other benefits that will help them see the value of their policy including accidental coverage that may have been added. Only once you’ve talked about the benefits should you start talking about premiums and quoting them.
4. Always Present Your Quotes Immediately After the Benefits
This reinforces the last tip. The client’s focus should be on the value of the policy rather than the price. Once you’ve successfully presented the value of the policy, then present quotes (female first).
5. Always Ask the Client What They Think the Policy Will Cost (this is high level stuff)
This is another very effective way of minimizing the client’s focus on the cost of the policy. When you’ve covered the benefits clearly and exhaustively, the customer will overshoot the premium 9 out of 10 times. For example, if the policy costs them $50 per month, they will usually guess $80 or $90. At this point, when they realize it’s more affordable than they assumed, they will often begin to upgrade themselves and ask for quotes at higher death benefits. (ONLY do this if you are super confident about your presentation and report that you have built with the client)
6. Always Let the Spouse/Partner You Know Can Handle the Phone Interview Go First
If the policy or company you’ve chosen requires a phone interview, make sure to observe which of the two partners you think would be most comfortable with such a process and have them take the interview first. This allows the more hesitant partner to see the process and relax. If this partner is the female, all the better. They typically take the interview better than the male partner.
7. Always Avoid Phone Interviews if There Is a Language Barrier
You have many options to choose from, and customers with a language barrier can often feel like starting the policy is more headache than they’re willing to go through. Don’t put this pressure on them if you can avoid it. Even though I prefer to “know before I go” in this instance I will go with a carrier with no interview needed.
8. Always Focus on One Thing Until You’ve Mastered It
It can be easy to get overwhelmed with the vast number of policy types and trying to sell them all at once. This will usually do you more harm than good because you become a jack of all trades and master of none. Once you’ve studied tips for selling final expense and mastered it, move on to universal life or medicare supplements, for example.
Consider Central and South American national soccer teams. Most kids in these countries have played nothing but soccer their entire lives because all they really need is a soccer ball and they’re cheap. Some countries with populations the size of Chicago have better national teams than the United States because American kids are often stretched between soccer, baseball, basketball, and football. The same principle applies to life insurance. FOCUS FOCUS FOCUS!
9. Always Show Your License During the Interview
You should ideally show your license to the client within the first three to five minutes. This helps build trust between you and the client.
10. Always Find Opportunities to Demonstrate Your Knowledge of Medications
During the presentation, the customer’s health will inevitably be discussed. It’s not mandatory to memorize the names of medications and the symptoms they treat, however it will impress the client and help build extra trust in you if you are able to.
11. Always Make a Customer Feel Good About Being Approved
As soon as the client finds out they’re approved after a phone interview or e-app, make a big deal out of it. Give them a high five or a pat on the back. This human contact can help solidify the sale. In fact, studies show that closing ratio increases by 41 percent when human contact is involved during the sales process.
12. Always Leave Something Behind for the Customer
Many agents will leave a business card behind after an interview or first meeting. It’s always good to leave something with your number on it, but a business card is easily lost or thrown away. Some agents will instead leave behind a refrigerator magnet or a mug, two things that are much more likely to be used and therefore seen often. You will be much more likely to get a call from them that way.
Are you feeling better about your chances at making a sale and keeping clients happy? You should be. With these 12 tips from the top on how to sell life insurance, you’re ready to make a difference.