Embarking on a career in insurance sales often presents a unique blend of opportunities and challenges. This path isn’t just about selling policies; it’s about providing people with the reassurance and protection they need in uncertain times.
This article offers an in-depth look into what selling insurance entails, from grasping the intricacies of various insurance products to overcoming common hurdles, and effectively reaching potential clients.
Whether you’re considering a career in this field or seeking to enhance your existing skills as an independent agent, this comprehensive guide is here to illuminate your path and answer the question: how hard is it to sell insurance?
Understanding the Insurance Selling Landscape
Before you can begin selling insurance, you need to have an understanding of the insurance landscape. Insurance policies are much more than just a product; they’re a promise of security and protection that could make a significant difference in someone’s life.
This means, as an insurance agent, your role goes beyond merely selling a product as you are responsible for helping customers choose the best coverage tailored to their unique needs.
As such, in order to successfully sell insurance, an independent insurance agent needs to be aware that this is fundamentally a business of trust. If your clients trust your insurance company, they’ll trust what you’re selling.
After this, the final step before you are able to sell insurance is to pass your state’s licensing exam and obtain your insurance license.
While some prospective insurance agents opt to study by themselves, the majority employ the help of a pre-exam course to ensure they pass on their first attempt.
For insurance agent pre-license education courses and exam prep, we recommend:
The Challenges of Selling Insurance
Navigating the landscape of insurance selling isn’t always smooth sailing. It has its fair share of hurdles. Here are some key challenges that new independent agents often find tricky:
- Client acquisition: Finding potential clients is often the first hurdle in insurance sales. It involves reaching out to people, generating leads, and informing them about the importance of insurance. This task demands substantial time, effort, and strategic planning
- Building trust: As mentioned earlier, trust is the cornerstone of insurance sales. It’s common for people to be skeptical about purchasing insurance. They might have concerns about cost, necessity, or the trustworthiness of insurance companies. As an insurance agent, it’s your responsibility to assuage their concerns, build solid relationships, and earn their trust
- Keeping up with regulations: The insurance industry is highly regulated. Staying updated with changing laws, regulations, and compliance rules is both necessary and challenging
While these challenges might seem formidable, remember that they are not insurmountable. With the right marketing strategies and persistence, you can tackle them head-on.
Recommended: Read more about this topic in the context of a life insurance agent in our Is Selling Life Insurance Hard article.
Marketing Strategies for Selling Insurance
Overcoming challenges requires the right strategies. Below, we’ve delved into some effective marketing techniques that can help you reach out to potential customers, communicate effectively, and ultimately persuade them to buy insurance.
Content marketing can significantly aid your efforts to educate and attract potential clients. Develop informative content like blog posts, articles, infographics, and videos that simplify insurance concepts and underline their benefits.
Through valuable content, you can position yourself as an authority in the field, attract potential clients to your website or social media pages, and cultivate trust with them.
Recommended: If you are interested in boost-starting your content marketing campaign, have a look at Sitetrail’s premium press release services.
Pay-per-click (PPC) advertising is a method where you pay a fee each time someone clicks on your online ad. These ads, when tailored with the right keywords and targeted demographics, can help you reach a larger, more relevant audience.
Consider utilizing platforms like Google Ads or Facebook Ads for your PPC campaigns. While this requires an upfront investment, the return in terms of increased visibility and potential customer leads can be substantial.
After devising robust marketing strategies, the next step is to hone your skills by working for an insurance agency or establishing your own business.
Social media is a potent tool in your arsenal for connecting with potential customers. Start by creating a professional profile on platforms like Facebook, LinkedIn, Instagram, and even Twitter.
Consistently share informative and engaging content about insurance. Answer queries, initiate conversations, and interact actively with your followers. This approach will not only boost your visibility but also help in establishing your credibility and trustworthiness in the field of insurance.
However, it is important to note that maintaining your online profiles consistently up-to-date with exciting content that engages users is a difficult and time-consuming job. For this reason, many insurance agents take advantage of third-party services to run their social media for them.
We recommend insurance sales agents work with Arrow; Arrow uses AI in order to offer up to five personalized posts a week, online traffic boosts, and weekly reporting ($49 per month).
Essential Skills for Selling Insurance
Working for an insurance business necessitates a unique set of skills. Here are some vital ones you’ll need:
- Sales skills: Good sales skills are at the heart of a successful insurance agent. This includes the ability to persuade, negotiate, and close a deal. But remember, effective selling isn’t about pushing a product; it’s about understanding your client’s needs and presenting the insurance policy as a solution.
- Communication skills: Clear, empathetic communication is paramount in building trust and understanding between you and your clients. You should be adept at explaining complex insurance terms in simple, easy-to-understand language.
- Customer service skills: Excellent customer service can turn first-time buyers into loyal, repeat customers. It’s all about attentiveness, patience, and a sincere desire to help your clients. When clients feel valued and taken care of, they’re more likely to return and refer others.
- Problem-solving skills: Your clients will have diverse needs and situations. Being able to think on your feet and provide custom-tailored insurance solutions is a critical part of the job.
Selling insurance might seem challenging at first, but with an in-depth understanding of the landscape, effective marketing strategies, and a repertoire of essential skills, it’s a mission that’s entirely achievable.
For more information on successful selling, have a look at our How to Sell Insurance article.
How to Become an Insurance Agent
If this all sounds appealing to you, selling insurance may be a lucrative career option for you. However, in order to begin selling, you will need to acquire an insurance license in your state.
Although the specific steps of this process vary between states, you will generally need to do the following in order to successfully become licensed:
- Complete a pre-licensing education course in your state: This is a legal requirement in most states; even where it is not required, we recommend purchasing a course in order to ensure that you pass your exam on your first attempt. This can end up saving you both money and time.
- Take your state’s insurance licensing exam: State insurance exams are generally administered by Pearson VUE, PSI, or Prometric. Line-specific outlines are offered to help with your preparation.
- Get a fingerprinting and/or background check: The exact fee for this will be dependent on your state but is generally less than $100.
- File an official license application: You can usually do this with your state’s Department of Insurance. (This can also be known as the Division of Insurance, depending on your location.)
Recommended: For more information, we recommend having a look at our state-specific How to Become an Insurance Agent guide by selecting your state.
How Hard is it to Sell Insurance FAQ
Is it hard to make money selling insurance?
While selling insurance can be challenging, especially at the beginning, it’s certainly not impossible. Over time, insurance sales agents earn much more as they begin to build a strong client base and develop their selling abilities. For more insight into the challenges new insurance agents often face, as well as how you can overcome them, see our How Hard is it to Sell Insurance article.
Is selling insurance a good way to make money?
Selling insurance can be an excellent way to make money. It offers the potential for high earnings, especially as you gain experience and expand your client base. In particular, the commission structure can be very lucrative, especially for agents who are dedicated, resilient, and adept at building strong client relationships.
What are the most effective ways to sell insurance?
The most effective way to sell insurance typically involves a combination of strategies, such as building strong interpersonal relationships, effectively utilizing social media and content marketing, and providing excellent customer service. For more information on effective strategies that you can implement to boost your insurance sales, be sure to check out our How to Sell Insurance article.
How hard is the insurance licensing exam?
The difficulty of the insurance licensing exam can depend on a number of factors, including your familiarity with the material, your study habits, and the specific type of insurance license you’re pursuing. See our How to Get Your Insurance License article for a guide that walks you through the entire process of becoming an insurance agent.
What type of policy pays the most when selling?
Typically, life and health insurance policies can pay the highest commissions in the insurance industry, sometimes as high as 90-100% of the first-year premium for certain products. However, this can vary significantly based on the specifics of the life insurance policy. Our Is Selling Health Insurance Hard article explores the reality of selling these lucrative policies, as well as strategies to overcome the challenges often faced by new life insurance agents.