Ready to make a difference and earn well while doing it? Life insurance sales could be your ticket to success.
I’ve spent years helping life insurance agents thrive online (check out these testimonials from happy clients!). I’ve seen beginners transform their lives and achieve incredible success. Now, it’s your turn.
Here’s a simple, no-nonsense guide to kickstarting your career in life insurance sales. Let’s dive in.
Are you in a rush? Here are the main points:
- To become successful in life insurance sales requires you to have a predictable stream of new leads and appointments each month (this video explains how)
- The more leads & appointments you have, the easier it will be to practice your sales strategies on the phone with prospects
- Find ways to differentiate yourself from other insurance agents so that your marketing & sales is easier
- Utilize technology & tools, stay informed of industry trends, and engage in professional development opportunities for success!
Why does selling life insurance matter?
A career in life insurance sales isn’t just about the paycheck; it’s about making a tangible impact in people’s lives by providing them financial security through permanent life insurance policies.
As a life insurance agent, you’re not just selling a product but offering peace of mind and the potential for a financially stable future.
The U.S. Bureau of Labor Statistics suggests that the job market for insurance sales agents is set to grow at a steady 7% annually from 2020 to 2030.
A career in life insurance sales offers opportunities for high earnings and the chance to impact clients’ lives positively. In 2020, life insurance agents earned an average of $52,180. Top performers with exceptional selling capabilities took home an impressive $127,840 during the same period.
Specializing in specific products allows agents to:
- Acquire a comprehensive knowledge of the product.
- Understand competitors in the market.
- Identify the target market’s needs.
- Provide the best advice and assistance to buyers with confidence.
Getting Licensed to Sell Life Insurance
To embark on the journey of selling life insurance, it’s essential to get licensed. This crucial step involves getting to grips with state regulations, completing exam preparation courses, and taking the licensing exam.
Venturing down the path to a life and health insurance license opens the door to a fulfilling career. Here’s the lowdown on getting licensed.
Each state lays down its requirements and licensing procedures for life insurance agents. These include education, training, exams, background checks, and ongoing education.
Getting well-versed with your operating state’s regulations ensures you meet the standards and can sell insurance products. Staying in line with state regulations can shield you from civil penalties, fines, or other enforcement actions.
Exam Preparation and Licensing
To earn your life insurance license, complete a pre-license education course, submit an application, ace the state exam, and satisfy any additional requirements. The licensing exam covers a broad spectrum of life insurance topics, state-specific regulations, policies, and testable areas such as insurance benefits, client interaction, and state and federal regulations.
Typically, agents should set aside 35 to 40 hours of study time to nail the licensing exam. With pass rates ranging from a hopeful 52% to an impressive 60% or more, depending on the state and the specific exam series, your determination and hard work can lead to a triumphant exam outcome.
Choosing the Right Life Insurance Products to Sell
As a life insurance agent, product selection is critical to success. You’ve got a variety of life insurance products at your disposal, each with its unique appeal:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Final expense insurance
Understanding the pros and cons of each product equips you with the knowledge to guide your clients toward the best choice, paving the way for a prosperous career in life insurance sales.
Top tip: Selling Indexed Universal Life insurance is one of the most lucrative life insurance products to sell. Learn how to get indexed universal life insurance leads here.
Term Life Insurance
With its set duration and affordable price tag, term life insurance is a hit among young, healthy buyers. It’s an excellent choice for those looking to save a penny or two, allowing them to invest in other financial ventures.
Term insurance is primarily intended for people between 25 and 45. If a client dies during the term, the insurance carrier will consider it, and the death benefit will be paid to the client’s designated beneficiary.
Whole Life Insurance
Whole life insurance, a permanent life insurance policy, offers lifelong coverage and includes a cash value component. It’s the go-to option for those wanting to ensure their loved ones are financially secure, regardless of when they pass away.
The cash value component is generated by the insurance company investing a portion of the annual premiums, providing policyholders with a financial safety net when needed.
Universal Life Insurance
Universal life insurance is a flexible counterpart to whole life insurance, offering varying premium and death benefit options. With permanent coverage and premiums that are more affordable than a whole-life policy, it’s an excellent choice for long-term financial security.
Universal life insurance allows policyholders to choose from various premium payments and death benefit options, offering the opportunity to accumulate cash value.
Final Expense Insurance
Final expense insurance, designed to cover funeral and burial costs, is typically marketed to seniors. With coverage amounts as low as $1,000, it provides an affordable alternative for life insurance coverage.
Selling final expense insurance allows agents to tap into a rapidly expanding market, enjoy the freedom of an independent agent, and potentially earn a 100% commission.
Developing Effective Sales Strategies
Ready to conquer the world of life insurance sales? It’s time to equip yourself with the right strategies. Let’s discuss generating leads, cultivating client relationships, and mastering the art of closing a sale.
By honing these strategies, you’re setting yourself up for a successful career in the life insurance industry.
Generating life insurance leads is the lifeblood of a life insurance agent’s career. It’s how you find potential clients and expand your business.
You can generate life insurance leads in various ways, such as through referrals, cold calling, or purchasing aged leads.
However, for best results, I recommend using more modern marketing strategies.
Many of these lead generation strategies can instantly boost your pipeline, increasing your chances of success.
Want to learn more? My free masterclass on lead generation goes through in more detail how you can use each of these channels.
Generating leads is great, but a lead does not equal a sale. Not yet, anyway!
So you. need a way to convert these leads into sales.
By building relationships with your life insurance leads.
In the world of life insurance sales, building robust relationships with clients is paramount.
So, how do you do this?
One of the best ways is to position yourself as an expert in life insurance. You can do this by creating content in the form of articles (like the one you’re reading now) or videos.
The more content you create, the easier it will be for leads to trust you.
Want to know the best type of content to create to get more life insurance sales? Watch this video!
Closing Sales Techniques
Closing a sale is a vital skill for life insurance agents. To close a sale successfully, you must ask the right questions, address objections, and present tailored solutions.
Being well-versed in the life insurance products you sell and handling objections skillfully can help you close sales effectively and secure new clients. And remember, the more you practice, the better you get!
Remember, the road to success in life insurance sales is about learning, applying, and growing. And my free masterclass on lead generation can help you kickstart that journey.
Utilizing Technology and Tools for Success
In this modern age, life insurance agents must harness the power of technology and various tools to streamline their sales process and maintain a seamless connection with clients. Agents can optimize their sales potential and deliver exceptional client service using CRM systems, automation tools, and social media platforms.
These tools can be game-changers, saving agents time and money while enhancing the customer experience.
CRM systems are mighty software solutions that help agents maximize lead management, track client interactions, and stay organized for optimal efficiency.
Automation tools can assist agents with lead nurturing and follow-up processes, simplify administrative tasks, and streamline the sales process.
Social Media Platforms
Social media platforms, on the other hand, can be used to connect with potential clients and share valuable content.
Agents can focus more on building relationships and closing sales by incorporating these tools into their sales process.
Ongoing Education and Professional Development
Just as the world of life insurance is ever-evolving, so too must be the knowledge and skills of the life insurance agent. The key to staying on top of your game? Commit to continuous learning and professional development. This will keep you abreast of industry trends, sharpen your sales skills, and ultimately lead you to thrive in your career.
Staying Current with Industry Trends
Keeping up with trends in the life insurance industry is crucial. By staying informed, you can adjust to changes, stay competitive, and offer the best options to your clients. Some current trends you should know about include:
- System modernization: Insurance companies are updating their systems to improve efficiency.
- Digital transformation: More services are being offered online.
- ESG focus: Environmental, Social, and Governance aspects are becoming more important.
- Embedded life insurance: This type of insurance is becoming more popular.
- Evolving distribution: The ways insurance is sold are changing.
- Personalized products: Customizable insurance options are on the rise.
- AI automation: Artificial Intelligence is being used to automate processes.
- Accelerated underwriting: The underwriting process is becoming faster.
By understanding these trends, you can improve your sales strategies and serve your clients better.
Personal Development Opportunities in Life Insurance Sales
From improving communication skills to fostering emotional intelligence, personal development opportunities abound in this field. Let’s delve into some key areas where life insurance agents can focus their personal development efforts.
- Communication Skills: Effective communication is the cornerstone of a successful career in life insurance sales. Agents must convey complex insurance concepts in a way that clients can easily understand. Regular training in communication skills can help agents become more persuasive and effective in their interactions with clients.
- Emotional Intelligence: Understanding and managing your and your clients’ emotions is a valuable skill in life insurance sales. Agents often deal with clients making significant and sometimes emotional decisions about their financial future. Agents with high emotional intelligence can navigate these conversations with empathy and understanding.
- Time Management: Life insurance agents juggle multiple tasks and clients. Mastering time management skills can help agents stay organized, meet deadlines, and maintain a healthy work-life balance. Various courses and workshops are available to help agents improve their time management skills.
Sales Techniques: While technical knowledge is essential, life insurance is ultimately a sales job. Agents should continually refine their sales techniques to stay competitive. This might include training in lead generation, closing techniques, and handling objections.
If you want to enhance your life insurance sales skills, Sales Accelerator is a great choice. This course covers everything to do with finding clients and lead generation. It’s designed for beginners and experienced agents who want to improve their skills and succeed more. In this course, you’ll learn the following:
- How to get new insurance clients
- Ways to build strong relationships
- Techniques for generating leads automatically
- How to follow up with life insurance leads using email marketing
Private support and help along the way
This course is a valuable resource for anyone looking to succeed in life insurance sales.
Embarking on a successful career in life insurance sales hinges on a deep understanding of the significance of life insurance, obtaining the necessary licensing, selecting the most suitable products to sell, crafting effective sales strategies, leveraging technology and tools, and continuously engaging in education and professional development.
By mastering these components and staying abreast with industry trends, you set yourself on a fulfilling path as a life insurance agent, positively impacting your clients’ lives and securing their financial futures.
To kickstart your journey and learn more about generating leads in the life insurance industry, don’t forget to check out my free masterclass on lead generation. It’s packed with valuable insights and strategies to help you get started with getting your very own clients.
Ashley Davis (or ‘Ash’ for short) is the CEO & Founder of Skyline Social. For over 15 years, he has been helping business owners with lead generation. Ash specializes in helping businesses get high-quality leads, appointments and clients each month in an automated, scalable and profitable way. You can watch his free Masterclass training to learn more.