In the evolving world of remote work, learning how to sell life insurance over the phone is an essential skill for any aspiring independent insurance salesperson.
With advancements in digital technology, phone-based communication has become more efficient and widely accepted, fostering a significant shift in the insurance industry. This shift has enhanced the importance of phone sales, particularly for selling life insurance.
This article is dedicated to guiding you through this journey and providing a comprehensive understanding of life insurance, as well as teaching you how to sell it over the phone and seize the opportunities presented in this remote work environment.
Understanding Life Insurance
Life insurance is a pivotal financial product designed to provide monetary support to the policyholder’s loved ones in the event of their untimely demise.
The policyholder makes regular payments known as premiums, and in exchange, the insurance company promises a lump sum payout upon the policyholder’s death.
In order to effectively sell insurance, whether online or over the phone, understanding the following key terms is crucial to ensure clear communication with your potential clients:
- Premium: This is the amount paid by the policyholder to the insurance company on a regular schedule, usually monthly or annually
- Policy: This is the contract that defines the terms and conditions between the insurance company and the policyholder
- Beneficiary: The individual nominated by the policyholder who will receive the insurance payout upon their death
If all this information comes naturally to you or is very easy for you to understand, be sure to see our article on How to Become a Life Insurance Agent — as this could be the career for you.
Types of Life Insurance
Life insurance policies are typically divided into two primary categories:
- Term life insurance: This policy covers the policyholder for a specific duration, such as 10, 20, or 30 years. If the policyholder passes away within this term, the insurance company makes a payout to the beneficiaries.
- Permanent life insurance: Unlike term life, this policy covers the policyholder for their entire life as long as the premiums are paid. It also includes a cash value component that can accrue value over time, providing an additional financial resource for the policyholder.
Now that you understand the key concepts and types of life insurance, it’s time to learn how you can obtain the necessary license to sell this insurance policy.
Getting Licensed to Sell Insurance
To be able to sell life insurance you must obtain the relevant insurance license in your state. The exact process for doing so varies on a state-by-state basis, but you’ll generally need to:
- Complete pre-licensing education: Many states necessitate a specific number of hours of pre-licensing education. This curriculum typically covers a broad range of insurance fundamentals, laws, and industry practices
- Pass the licensing exam: Once you complete the pre-licensing education, you’ll need to pass the state licensing exam. The exam usually covers insurance regulations, types of insurance, and ethical considerations in the insurance industry
- Apply for your license: After successfully passing the exam, you can apply for your insurance license through your state’s insurance department
In order to streamline the process of acquiring your insurance license, it is strongly recommended that you select a reputable pre-licensing course provider.
For insurance agent pre-license education courses and exam prep, we recommend:
Preparing for Phone Sales
With your knowledge of the fundamentals of life insurance, and the appropriate license in hand, the next step involves preparing to sell insurance over the phone.
Below we’ve included some tips to help you get started below:
- Set up your workspace: A quiet and comfortable workspace is critical for productive and uninterrupted phone conversations. In particular, investing in a good-quality headset for clear audio communication goes a long way
- Prepare your pitch: Write a script that succinctly covers the key points of your sales pitch and practice it until you feel confident. Remember, your script is a guide — try to sound natural and conversational
- Understand your prospect: Prior to making the call, conduct some research on your potential client. Understanding their needs and circumstances allows you to tailor your pitch more effectively
Once you’re up and running, it’s important to take advantage of effective sales techniques in order to boost your phone sales.
Phone Sales Techniques
Here, we’ve included some proven techniques you can use to help get the most sales of your life insurance policies over the phone:
- Build rapport: Begin the call with a warm introduction and a genuine inquiry when calling prospects. Building rapport with a positive first impression can set the tone for the rest of the conversation and is essential to establish credibility quickly
- Listen actively: Pay keen attention to the prospect’s words and respond empathetically to their concerns, showing you value their input and understand their needs. This is a great help in ensuring your communication doesn’t come across like a cold call
- Explain clearly: Life insurance can be complex, so ensure you explain concepts in a simple and straightforward manner. Your prospect might not have a strong background in insurance, so clarity is key
- Overcome objections: It’s natural for prospects to have doubts or objections. Prepare responses for common objections to show that you’re knowledgeable and confident in your product
- Close the sale: Once all the prospect’s concerns are addressed, guide them toward making a decision. Be confident and assertive, but remember to respect their decision-making process
For more guidance on how you can increase your life insurance sales as an independent agent, be sure to check out our How Do Life Insurance Companies Make Money article.
Tips and Best Practices
Selling life insurance over the phone is a skill that improves with practice. Here are some tips to help you along the way:
- Follow up: If a prospect isn’t ready to commit during the call, schedule a follow-up call. Persistence is crucial in insurance sales
- Stay positive: Rejection is part of the sales process. Maintain a positive attitude, regardless of the response you receive
- Keep learning: Stay updated on new products, sales techniques, and industry regulations. Continuous learning is essential in the ever-evolving world of insurance
How to Sell Life Insurance Over the Phone FAQ
How do you start a conversation when selling insurance?
When starting a conversation, it is important to balance professionalism and personal connection as you will only have one call. Begin by introducing yourself, mentioning the company you represent, and explaining the reason for calling. Then, express genuine interest in the potential client by asking about their current insurance situation and listening attentively to their response.
How to sell life insurance without being pushy?
Selling life insurance without coming off as pushy starts with being empathetic and understanding. Be interested in the client’s needs and how you can resolve them instead of solely focusing on closing the deal.
For a more detailed breakdown of the strategies you can use, our How to Sell Life Insurance Over the Phone article covers some effective ones you can use from home.
How do you sell over the phone?
Selling over the phone involves building a relationship with the client, despite the lack of face-to-face interaction and body language. Begin with a warm and professional introduction, then begin to ask the client relevant questions in order to understand their needs. For more information on using phone calls to sell, see our How to Sell Insurance Over the Phone article.
How do I become a life insurance agent?
Becoming a life insurance agent generally involves several steps. First, you should complete any required pre-licensing education, which varies by state. Then, you’ll need to pass a state licensing exam. After passing the exam, you can apply for your insurance license through your state’s insurance department. For more information on this process, see our article on How to Become a Life Insurance Agent.
How do I market myself as a life insurance agent?
Life insurance agents can market themselves with a number of different strategies. You could start by building a strong online presence, including a professional website and active social media profiles. Networking is also crucial, so you should attend industry events and join professional associations. Offering informative seminars or webinars can showcase your expertise and generate insurance leads.