If you want to sell life insurance, it’s essential to understand that it’s a very competitive sector. For example, the Bureau of Labor Statistics reports one life insurance agent for every 1,234 people in the United States as of early 2020. While this makes for a difficult road to prolonged success, there are still plenty of good reasons to sell life insurance. One of the top reasons is that it can be a very lucrative career. Below, we provide a basic guide on how to start selling life insurance.
Advantages of Selling Life Insurance
Don’t be discouraged by the fact that selling life insurance is a challenge. On the contrary, there are many positive advantages of selling life insurance.
When you sell life insurance, you don’t have to take on a typical job working from 9 a.m. to 5 p.m. You’ll have the flexibility of working the hours that are best for you and your clients.
There aren’t any specific qualifications you’ll need to have before you can start selling life insurance, at least from an educational standpoint. So while you’ll be required to be licensed to sell life insurance, you won’t need to earn a Bachelor’s degree to get started, but you will need a strong work ethic.
There are also plenty of job opportunities selling life insurance. There’s a reason there are so many agents throughout the country—life insurance is in high demand. It’s also an industry that’s growing. The BLS estimates that the number of agents is likely to grow at an annual rate of 7% from 2020 to 2030.
Finally, you can earn very high commissions selling life insurance, especially compared to other types of insurance. For example, independent agents have the potential to make 100% of the premiums for the first year of the policy in commissions, followed by an annual rate of 5% after that.
Know the Products
With life insurance sales being so competitive, you must find a way to separate yourself from other agents in your market. A great way to do that is to educate yourself on the various life insurance policies.
Unlike some other types of insurance, life insurance policies vary greatly. The two main categories of life insurance policies are term and whole life, though many different policies fall underneath each.
By becoming an expert in the various types of life insurance and understanding who would benefit from each, you can serve as a trusted adviser for your current and prospective clients. Not only will you be helping them provide for their loved ones after they pass, but you could also be helping them secure their own future in retirement.
If you know the in-depth features of each type of policy and its benefits and potential drawbacks, you can help educate clients and put them in the best position. Then, as you earn their trust by selling them a life insurance policy, they might turn to you for other insurance products if you offer them.
Specialize in One Particular Product
While it’s a good idea to know about all the products and policy types that are available, the most successful life insurance agents specialize in one or two niche products. This is because they can drill down to the products they believe the most in and that they think will serve their customers best.
Narrowing the products you sell to only a few will help you focus all your marketing and sales efforts. Instead of casting a wide net and trying to reel in all the fish, you can be more selective and targeted when you prospect.
Know Your Market
What type of life insurance products you decide to sell could be based on what the market dictates. Certain life insurance products might be more attractive to your target audience than others based on a number of factors, including your location and the general demographics of the people who live there.
Defining your target audience is essential in any sales job, but it proves especially so when selling life insurance. That’s because certain products won’t appeal to some people.
Try and Try Again
To be a successful life insurance agent, you must try and try again. You cannot let minor setbacks get in the way of your long-term goals. Go into it knowing that you will face rejection more often than you’re going to land clients, and that’s okay so long as you don’t look at these rejections as failures. Instead, learn from every situation to refine your approach, message, and, if necessary, your target audience.
Also, know that a “no” might mean “not now.” In other words, the same people who reject you today may be interested in your life insurance policies at a later date. So, be polite and helpful to everyone no matter what. You never know who might come back around and turn to you when they need something you’re selling.
Discover the Good Life
We hope you enjoyed this guide on how to start selling life insurance! As you can see, the path to success can be full of challenges, but the potential payback makes it all worth it.
At Good Life Insurance Associates, our experienced sales associates are here to provide support and training for both new and seasoned agents. To learn more about careers with GLIA, explore our business support services. Or, speak with a team member today about your journey to becoming an independent agent. Again, thanks for visiting our blog; we hope to help you soon!
Want to learn more about what it takes to succeed in insurance sales? Read our blog on effective lead-generation strategies for insurance agents.