Anyone thinking about a career in insurance should know how to Sell Insurance Policy. Hard work, determination, networking, marketing, follow-up, and a genuine interest in people’s lives, plans, and future are all required for insurance sales. Working on commission (in most cases) and having at least one insurance license are required. This article outlines the steps to selling insurance.
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Insurance policy
An insurance policy is a legal contract between an insurer (insurance company) and an insured (individual) in which the insured receives financial protection from the insurer for losses incurred under certain conditions.
An insurance policy requires the insured to pay regular premiums to the insurer. If an unfortunate event occurs, such as the death of the insured or damage to the insured or his property, the insurer pays a predetermined sum assured to the insured.
Related reading: best jobs in the insurance industry
What is the Function of an Insurance Policy?
To understand how insurance works, you should be familiar with the following terms:
- Premium: the amount of money you pay to the insurance company in order to receive insurance policy benefits.
- Sum Insured: The sum insured applies to non-life insurance policies such as home and health insurance. It refers to the maximum limit on the costs you are covered for in a given year in the event of an unfortunate event.
- Sum Assured: The sum assured is the amount paid to the nominee by the life insurance company if the insured event occurs (death of insured).
Insurance, as previously stated, is a legal contract between the insurer and the insured. The insurance policy specifies all of the conditions and circumstances under which the insurance company is required to pay the insurance amount to you or the nominee.
When you purchase an insurance policy from an insurance company, you must make regular payments (premium) for a set period of time.
Step to selling Insurance policy
Choose the type of insurance you want to sell and get your license.
Insurance sales is a broad category, and a single insurance license does not cover all of them. As a result, you should decide what kind of insurance you want to sell.
Life, health, property, and casualty insurance are all common options. Surplus line insurance, which covers unusual situations with risks not covered by standard insurance, and variable products insurance, which has an investment component, are two other types that are fairly common.
To obtain an insurance license for anything other than variable products insurance (which requires a FINRA Series 6 license), you must be at least 18 years old. You must pass an exam administered by the state in which you wish to sell insurance.
Before taking the exam, many states require that you complete pre-licensing education. A background check, which may include fingerprinting, is also required.
Select your preferred method of selling insurance.
After you obtain your license, you can sell insurance in two ways. You can work as a “captive” agent or as an independent agent.
Captive agents work for a single insurance company and can only sell their company’s insurance products to prospects and clients. Their office expenses are typically covered, and they receive benefits and continuing education training.
Independent agents work for themselves and sell insurance products from various companies. They start and market their business with their own funds, but they typically earn higher commissions than captive agents. They can tailor solutions for their prospects and clients by offering products from various carriers.
Create leads.
You’re ready to sell insurance after earning your license and deciding how you want to sell it. You know you need to help clients understand the differences between insurance policies so they can choose the best plan for them, but first you have to get those clients. So, how do you go about doing that? You’ll need to generate leads.
As a captive agent, your employer may provide you with leads, typically by selling them to you. If you work on your own, you will need to generate leads in other ways. Many independent agents buy lists, and some even hire insurance marketing firms or field marketing firms to assist them with marketing and lead generation.
Even with the assistance of another party, it’s always a good idea to ensure that you also get leads the old-fashioned way—via networking and referrals. Encourage your family and friends to recommend you.
Participate in insurance and other community events to publicize your status as an insurance agent. Remember to set up a website and profiles on Facebook, LinkedIn, Twitter, Instagram, and Snapchat, and to interact with them as much as possible.
Prepare your pitch.
The pitch is everything when it comes to selling insurance to leads. You must present yourself well, speak in a language that your prospects understand (no slang or jargon), and show empathy for their situations. You can better explain how your insurance products will benefit them if you put yourself in their shoes.
Potential customers want a solution and benefits, not a laundry list of features. As a result, you should investigate and comprehend how the features you provide solve problems in order to make appropriate solution recommendations. Solution selling is more effective than simply listing features such as a 24×7 helpline or a one-click accounting report.
Many leads may believe they do not require insurance or are hesitant to commit to the best policy due to cost concerns. Alternatively, they may be required to purchase insurance by a bank or by law and seek the cheapest option. In those cases, you should ask questions that will focus their attention on what could happen if they do not have the appropriate amount or type of insurance:
- What is the most valuable possession in your home?
- What happens if it is lost or stolen?
- What severe weather events, such as floods, hurricanes, blizzards, or storms, have occurred near your home?
- How long would your family be able to live on your savings if you died?
- What do you think the cost of a funeral is?
- What would happen if you were permanently injured on the job?
- How would you and your family be supported if you were injured or hospitalized for an extended period of time?
After you’ve received responses to those questions, you can explain how the insurance solutions you offer can help them prepare for those scenarios.
Implement these suggestions.
Here are some additional pointers to help you attract and retain new clients:
- Set sales targets to help you stay on track throughout the year.
- To put prospects and clients at ease, find something in common with them.
- Look for opportunities to learn from experienced coworkers or, if you’re self-employed, from other self-employed agents.
- Maintain an awareness of market and insurance trends so that you can introduce new solutions to prospects and existing clients.
- Listen more than you speak to your prospects and clients.
- Never pass up a networking opportunity.
- Collaborate with other professionals, such as lawyers and accountants, who can provide answers to client questions that you cannot. Then, as a way to get referrals, offer to answer insurance questions that they can’t.
Consider developing referral programs.
Current customers and business colleagues who know what you do will be rewarded for referring their friends and acquaintances. Promote the potential referral on all of your social media accounts.
Make referral cards that include your company’s information as well as the customer’s handwritten name. That way, the customer can distribute them to whoever they want.
Include referral requests in all possible communications. When you send an email or a letter, ask your clients to refer you to someone who could benefit from your services.
Use your social media profiles to express your gratitude to anyone who refers to you.
Referrals should be checked with state and local laws.
Conclusion on how to sell insurance policy
If you want to help people plan for the future by providing them with the right insurance products, the first step is to obtain your license. Exam preparation packages can help you improve your chances of passing, allowing you to begin your exciting new career.
Frequently Asked Questions FAQ
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