Anyone thinking about a career in insurance should know how to sell insurance. Hard work, determination, networking, marketing, follow-up, and a genuine interest in people’s lives, plans, and future are all required for insurance sales. Working on commission (in most circumstances) and having at least one insurance license are required. This article outlines the processes of selling insurance.
Choose the type of insurance you want to sell and get your license
Insurance sales is a large field, and a single insurance license does not cover all of them. As a result, you should decide what kind of insurance you want to market. Life, health, property, and casualty insurance are all frequent alternatives. Surplus line insurance, which covers exceptional situations with risks not covered by ordinary insurance, and variable goods insurance, which has an investment component, are two more forms that are rather prevalent.
To obtain an insurance license for anything other than variable products insurance (which requires a FINRA Series 6 license), you must be at least 18 years old. You must pass an exam offered by the state in which you wish to sell insurance. Before taking the exam, many states require you to take prelicensing instruction. In addition, you must pass a background check, which may include fingerprinting.
Select your preferred method of selling insurance
After you obtain your license, you can sell insurance in two ways. You can work as a “captive” agent or as an independent agent. Captive agents operate for a single insurance company and can only market their company’s insurance products to prospects and clients. Their office expenses are often covered, and they receive perks and continuing education training.
Independent agents operate for themselves and sell insurance products from several companies. They start and market their firm with their own funds, although they often earn higher commissions than captive agents. They can tailor solutions for their prospects and clients by selling products from various carriers.
You’re ready to sell insurance after receiving your license and deciding how you want to sell it. You know you need to help clients understand the distinctions between insurance policies so they can choose the best plan for them, but first you have to obtain those clients. So, how do you go about doing that? You’ll need to generate leads.
As a captive agent, your employer may offer you with leads, typically by selling them to you. If you work on your own, you will need to produce leads in various ways. Many independent agents buy lists, and some even hire insurance marketing firms or field marketing firms to assist them with marketing and lead generating.
Even with the assistance of another party, it’s always a good idea to ensure that you also receive leads the old-fashioned way—via networking and referrals. Encourage your family and friends to recommend you. Participate in insurance and other community events to publicize your status as an insurance agent. Remember to set up a website and profiles on Facebook, LinkedIn, Twitter, Instagram, and Snapchat, and to interact with them as much as possible.
Prepare your pitch
The pitch is everything when it comes to selling insurance to leads. You must present yourself well, communicate in a language that your prospects understand (no slang or jargon), and show empathy for their difficulties. You can better explain how your insurance products will help them if you put yourself in their place.
Potential customers want a solution and advantages, not a laundry list of features. As a result, you should investigate and comprehend how the features you provide solve problems in order to give acceptable solution recommendations. Solution selling is more effective than simply mentioning features such as a 24×7 helpline or a one-click accounting report.
Many leads might think they don’t need insurance or are reluctant to commit to the best policy, fearing the cost. Or, they might be required by a bank or law to purchase insurance and want the lowest-price option. In those cases, you should ask questions that will get them to focus on what could happen without the proper amount or type of insurance:
- What’s the most valuable thing in your house?
- What happens if it is stolen?
- What kind of serious weather events—such as floods, hurricanes, blizzards, or storms—have happened near your house?
- If you passed away, how long would your family be able to live on your savings?
- How much do you think a funeral costs?
- What would happen to your job if you were permanently injured?
- If you’re injured or hospitalized for a long period of time, how would you and your family be supported?
After you get answers to those questions, you can explain how the insurance solutions you provide can help them safeguard for those situations.
Great tips to follow when selling Insurance
Here are some additional tips that can help you get new clients and keep them:
- Create sales goals to keep you on track throughout the year.
- Find something in common with prospects and clients to put them (and yourself) at ease.
- Find opportunities to learn from experienced coworkers or, if you’re independent, from other independent agents.
- Keep up with the markets and insurance trends so you can introduce new solutions to prospects and existing clients.
- Listen to your prospects and clients more than you talk to them.
- Never miss an opportunity to network.
- Partner with other professionals, like lawyers and accountants, who can answer client questions that you can’t. Then, offer to answer insurance questions that they can’t as a way to get referrals.
If you want to help individuals plan for the future by providing them with the correct insurance products, the first step is to obtain your license. Exam preparation kits can help you improve your chances of passing, allowing you to begin your exciting new career.