How to Approach a Customer About Life Insurance

Are you wondering how to approach a customer for life insurance? Selling life insurance requires empathy, knowledge, and confidence. Customers may find life insurance overwhelming or unnecessary, so it's crucial to approach them with care while demonstrating the value of your offering.

This guide will show you how to connect with leads and close sales without overwhelming them.

What Stops People from Buying Life Insurance?

Did you know that only 52% of Americans have some type of life insurance policy? This means nearly half of people in the U.S. are not aware of the benefits of a life insurance policy. Some of these individuals may be misled by myths and conceptions surrounding life insurance. A lot of work needs to be done to educate and inform customers about insurance in a calming manner. 

According to LIMRA’s Life Insurance Barometer Study 2021, there are four major misconceptions Americans have about life insurance: 

1. Life insurance is cost intensive.

2. Employer-provided insurance coverage is adequate.

3. Purchasing life insurance is a complex process.

4. Life insurance isn’t required at a younger age.

   
   

Most people believe that they do not qualify for a sufficient life insurance plan while others are uncertain about what type or how much life insurance they need. In addition, people tend to avoid thinking about death, so they don’t even think about buying life insurance. 

The Best Way to Approach a Customer for Life Insurance

1. Address Reservations Early

   Start by asking open-ended questions to uncover your client’s concerns. Many people overestimate the cost of life insurance. Use tools like Agent CRM to compare plans and provide accurate quotes, showing clients how affordable life insurance can be.
   

2. Build Rapport

   Establish trust from the start. Make a strong first impression with a friendly introduction, pronounce their name correctly, and actively listen. Ask thoughtful questions like:

   • “What financial goals are you planning for your family?”

   • “Do you have any questions about how life insurance works?”

   • “What would you want your loved ones to have in place if something happened to you?”

   Your willingness to listen will make clients feel valued and open to your suggestions.
   

3. Personalize Your Approach

   Tailor your recommendations to fit each client’s unique situation. Use customer relationship management (CRM) software, like Agent CRM, to track client preferences and provide solutions that align with their needs. For example:

   • Compare whole life and term policies based on their financial goals.

   • Highlight benefits like cash value accumulation or coverage flexibility.
     

4. Keep the Conversation Positive

   Avoid fear-driven tactics. Instead, focus on the legacy they’ll leave for loved ones. Replace phrases like “death benefits” with “family financial protection.” For instance, emphasize how life insurance can:

   • Cover debts like mortgages or student loans.

   • Provide income replacement for their family.

   • Offer peace of mind knowing their loved ones are secure.
     

5. Educate Clients

   Many clients hesitate because they don’t fully understand life insurance. Break down complex terms into simple, relatable language. Create a comparison of “life with insurance” vs. “life without insurance” to illustrate its impact.
   

6. Prepare and Use Tailored Scripts

   Scripts help you stay focused and consistent during sales conversations. Personalize your scripts for different client scenarios and practice active listening. Tools like Agent CRM can help you organize scripts, automate follow-ups, and keep track of client interactions seamlessly.

Tips for Success in Life Insurance Sales

• Be Patient: Life insurance is a big decision. Give clients the time they need to consider their options.

• Be Transparent: Answer all questions honestly and clearly to build trust.

• Follow Up: After your initial conversation, reach out with personalized information or reminders to keep the conversation alive.

Tools to Streamline Your Life Insurance Sales

Running a successful life insurance business requires the right tools. Platforms like Agent CRM offer solutions to simplify your operations and enhance client relationships. Key features include:

• Automated lead tracking and follow-ups.

• Comparison tools for quoting accurate premiums.

• Pre-designed scripts for calls and texts.

Approach Clients with Confidence and Empathy

Approaching customers for life insurance isn’t just about selling policies—it’s about providing solutions to protect their loved ones. By building rapport, addressing concerns, and educating clients, you can create meaningful connections and close more sales.

Start simplifying your sales process with Agent CRM. Learn more about this all-in-one tool here.