How to Sell Life Insurance Successfully - Top Tips & Tricks

Whether you are an individual life insurance agent or a life insurance agency owner, selling life insurance can be challenging yet highly rewarding. With 409,950 life insurance agents in the U.S. in 2020, competition is fierce, but a solid strategy can set you apart.

Even experienced agents need a refresher to stay competitive, and agencies benefit from revisiting the basics to support agent recruitment and retention. This guide offers actionable tips to improve productivity, enhance client relationships, and increase sales success.

Why Sell Life Insurance?

Selling life insurance isn’t for everyone, but it’s a career with significant rewards for those willing to meet its challenges. In 2020, the median wage for life insurance agents was $52,180, with top earners bringing in over $127,840.

Here are some reasons why many choose this career:

• High Commission Potential: Life insurance sales can yield substantial earnings.

• Career Growth Opportunities: The industry offers numerous avenues for advancement.

• Flexible Scheduling: Agents often have control over their work hours.

• Ongoing Income: Renewal commissions provide consistent income over time.

How to Sell Life Insurance Successfully

1. Lean on Referrals

   Referrals are one of the most effective ways to generate high-quality leads. Satisfied clients can introduce you to friends, family, and coworkers. Build strong relationships with your clients and don’t hesitate to ask them for referrals—they’re often happy to help.
   

2. Stay Current with Client Needs

   Life circumstances change, and so do insurance needs. Regularly check in with clients after major life events like marriage, divorce, or having children. For example:

   • Term to Whole Life Upgrades: Revisit term policyholders to discuss the benefits of whole life insurance.

   • Family Coverage: Suggest adding dependents or partners to existing policies.
     

3. Understand Your Target Audience

   Knowing your audience is key to customizing your approach. For example:

   • Younger Buyers (25-45): Focus on term life policies for those starting families or purchasing homes.

   • Older Clients (45+): Highlight whole life or universal life policies as tools for wealth preservation and estate planning.

   Understanding demographics and trends allows you to position your offerings as the ideal solution for their needs.
   

4. Consider Specializing

   Rather than selling every type of insurance, specialize in a specific product or niche. Specialization:

   • Enhances your credibility.

   • Provides deeper product knowledge.

   • Builds confidence to handle client questions and objections effectively.

   For example, a client may ask about the difference between term and permanent life insurance. Specializing allows you to clearly explain that while term policies are often cheaper, permanent life insurance builds cash value and offers long-term benefits.
   

5. Master Cold Calling

   Cold calling remains a valuable strategy when done correctly. Here’s how to make it work:

   • Create a Strong Script: Craft an engaging opening that addresses the prospect’s needs.

   • Build Rapport: Establish trust by asking thoughtful questions about their goals and challenges.

   • Follow Up Consistently: Few prospects convert on the first call—nurture leads over time.
     

6. Invest in Continuous Learning

   The insurance industry evolves constantly. Stay ahead by:

   • Attending seminars and training sessions.

   • Following industry leaders on LinkedIn and social media.

   • Using real-life examples to demonstrate the value of insurance policies.

   Continuous learning ensures you remain a trusted resource for your clients and adapt to changing industry trends.
   

7. Use Technology to Streamline Sales

   Leverage tools like Agent CRM to simplify lead management, track client interactions, and optimize your sales process. Key benefits include:

   • Automating repetitive tasks like data entry.

   • Tracking customer relationships and follow-ups.

   • Accessing real-time analytics to improve sales strategies.
     

Tips for Agencies to Support Agents

Life insurance agencies can boost agent success by:

• Providing regular training on new products and sales techniques.

• Offering access to life insurance CRM platforms to manage leads effectively.

• Encouraging a collaborative environment to share best practices.

Conclusion

Selling life insurance successfully requires a combination of skills, strategies, and tools. By focusing on referrals, staying attuned to client needs, and continuously expanding your knowledge, you can build a thriving insurance business.

Utilize technology like Agent CRM to streamline your workflow, manage leads, and improve client relationships. With the right approach, you can confidently navigate the competitive world of life insurance sales and achieve long-term success.