Life insurance is a topic that both prospective clients and financial advisors don’t care about. Product design can be complicated, and the event that triggers benefits does not evoke pleasant images, which is different from retirement plan advertisements that include sailing boats and beach walks.
However, there is a demand for life insurance among most consumers who generate income and borrow. Finding ways to increase life insurance sales has returned to some time-tested methods and involves some new issues to help consultants open up the ever-evolving market.
- When you thoroughly understand your product, potential buyers of life insurance will feel relieved.
- However, please keep your sales presentation simple and short. Be truthful in the conversation.
- Establishing a referral network can help increase sales and find potential customers through social media.
1. Know your stuff
Find a product and learn it from the inside out. Consultants who have a thorough understanding of the contracts they promote will impress potential clients. Variable Universal Life Insurance (VUL) policy design and additional terms are complex, but letting yourself understand the features, benefits, and sub-accounts can help drive sales opportunities forward. Rotating aimlessly between products can mess up the presentation.
Develop the habit of communicating policy benefits to potential buyers in an easy-to-understand manner. Rather than using industry jargon and acronyms, find a way to attract potential customers without sacrificing transparency. Buyers need to know what they got. Reducing confusion at the point of sale contributes to sales success and policy retention.
2. Hone your presentation skills
Reassuring potential customers in an appointment environment can translate into a higher transaction rate. Before starting a formal speech, finding some common interests is an effective way to connect with potential buyers. The sales trajectory should be organized, simplified, and most importantly, short.
Avoid leading the conversation in a sales meeting. Through open-ended questions, let potential customers participate in the process and maintain interest through interaction. A 2014 study conducted by the Life Insurance and Market Research Association (LIMRA) and Maddock Douglas found that life insurance sellers need to be more authentic in their communication. A frank dialogue between the consultant and the prospective buyer can help relieve anxiety and boost sales.
3. Have a story
Many experienced consultants have related stories that humanize the life insurance purchase process. The story does not have to be tragedy at the center. After all, life insurance policies also have life benefits: to provide liquidity to an emergency fund or to supplement retirement income.
On the other hand, some buyers are moved by emotions. Parents want to see their children go to college, while spouses want to ease the financial burden on their partners. Most consultants have to provide checks that help stabilize the life of the beneficiary. Be prepared to tell your story in the right circumstances.
4. Build partnerships
Indeed, the best advertisements are free. Word of mouth has played a big role in building a customer base. Acting alone can be troublesome, especially when your advantages may extend to financial products and services beyond life insurance. If this is the case, please establish a symbiotic relationship with a consultant who specializes in life insurance sales.
The partnership may generate a small referral network from which to increase sales and allocate commissions. Adopt a team approach and create synergies to let customers know that you are a loyal trustee.
5. Use social media
Successful life insurance sales are still a numbers game. The more potential customers you attract, the more likely you are to complete the transaction. With the popularity of digital advertising, social media platforms such as Facebook provide an effective way to market services at low prices to thousands of buyers in your geographic area. Nearly 29% of consumers said they prefer to buy life insurance online.
Take advantage of the fact that most people have mobile devices and log in frequently during the day. The era of “smile dial” is over.