If you’re an insurance agent or considering becoming one, selling a term life insurance policy may seem like a complex task. However, with the right knowledge, strategies, and tools, you can succeed in this endeavor.
Our How to Sell a Term Life Insurance Policy guide will provide you with actionable insights into how you can effectively boost your sales of these policies.
How to Sell Term Life Insurance Successfully
Success in selling term life insurance hinges on several elements. Mastering these can transform your sales approach and yield far better results.
Digital marketing is one of the most important elements. The main components of this highly effective strategy have been explored below.
Using Social Media to Sell Term Life Insurance
In the digital age, social media platforms have emerged as potent tools for marketing and sales. These platforms, such as Facebook, Twitter, LinkedIn, and Instagram, provide immense opportunities to connect with potential customers and generate leads and sales.
In order to use social media effectively, try to:
- Create an engaging profile: Your social media profile is your digital storefront. It’s the first thing potential customers see when they visit your social media page. Hence, it’s crucial to create a profile that is professional, compelling, and engaging
- Post regularly: Consistency is key on social media. Take advantage of this by keeping your audience engaged with term life insurance content ranging from posts explaining different aspects of term life insurance, infographics showcasing its benefits, to articles discussing its relevance in different life scenarios
- Engage with your audience: Social media is about two-way communication. Responding promptly to comments, messages, and queries from your followers not only shows your reliability but also helps build strong relationships with potential customers
As a life insurance agent, we recommend working with Arrow; Arrow uses AI in order to offer up to five personalized posts a week, online traffic boosts, and weekly reporting.
Content Marketing for Term Life Insurance
Content marketing is a powerful way to attract, engage, and convert your target audience. It involves creating and sharing valuable content related to term life insurance that educates your audience and guides them toward making a purchase.
We’ve broken down some of the ways you can use content marketing to sell term life insurance in more detail below.
Blogging About Term Life Insurance
Blogs are an excellent platform to share in-depth information about term and permanent life insurance policies.
Regularly writing and posting blogs that answer common queries or address misconceptions about term life insurance can position you as an industry expert.
For instance, you could write a blog explaining the difference between term and whole life insurance or one detailing the steps to buy a term life insurance policy.
Leveraging Videos for Term Life Insurance Sales
Similarly, visual content, particularly videos, has a high engagement rate with users. Creating simple yet informative explainer videos on term life insurance can help break down complex aspects of insurance into digestible content.
These videos can then be shared on your website, social media channels, or video-sharing platforms like YouTube for further brand exposure.
Email Marketing for Term Life Insurance
Email newsletters are another great form of content marketing since they serve as a consistent touchpoint between you and your subscribers.
Sharing valuable content like tips on choosing the right insurance policy, updates on insurance regulations, and personalized insurance solutions can help nurture your leads and steer them toward a purchase decision.
Using Pay-Per-Click Advertising
Pay-per-click advertising is a digital marketing strategy where advertisers pay a fee each time one of their ads is clicked.
It’s a way of buying visits to your site rather than attempting to earn those visits organically. PPC advertising is one of the most cost-effective ways to reach potential customers since you only pay when someone visits your website through the ad.
Here’s how it works:
- Choose your keywords: The success of a PPC campaign largely depends on identifying the keywords your potential customers might use when searching for term life insurance. These could range from generic terms like “term life insurance” to more specific ones like “affordable term life insurance for seniors”
- Create your ads: Creating engaging ad copy is crucial in PPC advertising. Your ad copy should resonate with your target audience’s needs and interests, compelling them to click on the ad and learn more. Highlight the benefits of term life insurance and why they should choose your services.
- Set your budget: PPC advertising allows you to control your advertising costs by setting a budget. You only pay when someone clicks on your ad, so make sure to set a budget that aligns with your overall digital marketing strategy. Monitor your campaign performance regularly and adjust your budget as needed to maximize your return on investment (ROI)
Building a Website for Term Life Insurance Sales
In today’s digital landscape, having a professional website is a must for any insurance agent. Your website serves as the central hub for all your digital marketing efforts, offering potential customers a one-stop platform to learn about your services.
To create an effective website it is important to:
- Provide clear information: Your website should provide comprehensive information about term life insurance. Explain what it is, its benefits, who it’s best suited for, and how customers can purchase a policy from you
- Include a contact form: An easily accessible contact form can streamline communication with potential customers. Ensure the form is simple to fill out and is placed strategically on your website, such as on the homepage or the “Contact Us” page
- Optimize for SEO: Search engine optimization (SEO) is the practice of optimizing your website to rank higher in search engine results, thereby increasing its visibility. Incorporating relevant keywords throughout your website and regularly updating your content are two essential SEO practices for improving your website’s ranking
We recommend the GoDaddy Website Builder as a small insurance agent company. GoDaddy meets most small business needs while providing an extremely straightforward user experience.
Tips for Selling Term Life Insurance
Apart from leveraging digital marketing strategies, there are several general tips that can improve your effectiveness in selling term life insurance.
Understand Your Product Thoroughly
Before you can convince others to purchase term life insurance, you need to understand it thoroughly. Familiarize yourself with the various aspects of term life insurance, including its benefits, limitations, and ideal beneficiaries.
This knowledge enables you to answer any questions a potential customer might have confidently.
Listen to Your Clients
Every client has unique insurance needs and concerns. Active listening can help you understand their specific situation, allowing you to recommend the most suitable term life insurance coverage.
Remember, selling insurance is not just about making a sale; it’s about providing a solution that meets the client’s needs.
Be Honest and Transparent
Honesty and transparency are crucial in the insurance industry. Always be upfront about the terms of the policy, including any limitations or exclusions.
This not only builds trust with your clients but also ensures there are no unpleasant surprises for them in the future.
More specific tips and strategies to enhance your selling have been explored in our How to Sell Insurance article.
How to Become a Term Life Insurance Agent
If you’re interested in becoming a term life insurance agent, there are several steps you need to take:
- Education: Most states require a high school diploma or equivalent to become a licensed insurance agent. Some may even prefer a bachelor’s degree in business or a related field
- Licensing: To sell life insurance, you must pass a state licensing exam. This exam tests your knowledge of insurance laws, ethics, and the types of policies available
- Training: Many insurance companies provide training programs for new agents. These programs typically cover product knowledge, sales techniques, and regulatory compliance
Becoming a successful term life insurance agent requires constant learning and refinement of your sales techniques.
Recommended: For more information, we recommend having a look at our state-specific How to Become a Life Insurance Agent article.
How to Sell Term Life Insurance FAQ
Can you really sell a term life insurance policy?
Yes, you can sell term life insurance policies, but it’s not as common as selling a permanent life insurance policy. This process, known as a life settlement, typically happens when the policyholder no longer needs the coverage or can’t afford the premiums anymore. To read more about generating income as a life insurance agent, see our article on How Do Life Insurance Companies Make Money.
How much can I get from selling a term life insurance policy?
The amount you can get from selling life insurance policies depends on several factors, including the policy’s cash value (aka cash surrender value), your age, health condition, and the policy terms. On average, sellers receive around 20% to 25% of the policy’s death benefit. For more general information on selling these policies, see our How to Sell Insurance article.
How does selling your term life insurance work?
Selling term life insurance policies, or life settlements, involves the owner of a policy selling it to a third party (such as a life settlement provider) for a lump sum. The buyers, which are often life settlement companies, then become the policy’s new beneficiary, take over all future premium payments, and collect the entire death benefit when the insured dies.
How much is a term policy worth to sell?
A term policy’s worth when sold depends on various factors such as the policyholder’s age and health, policy premiums, and the death benefit amount. On average, policyholders can expect to receive around 50% to 80% of the policy’s death benefit (the remainder often goes to a life settlement company as a commission).
What license do I need to sell term life insurance?
To sell term life policies, you need to acquire a life insurance license in your state — which will require you to pass your state’s licensing exam in order to do so. This exam typically covers insurance laws, ethics, and different types of insurance policies. For more information, check out our article on How to Get Your Insurance License.