Life insurance is probably one of the hardest things to sell. Unlike household and vehicle insurance, which is more of a requirement than an option, insurers have to sell the importance of life policies and often have to go through strenuous lengths to highlight why it is necessary. Let’s face it, no one wants to talk or hear about the morbid subject of death and often denial is a happier place.
But, death is a part of life and as much as we would like to think that we are born with immortal genes, reality says otherwise. As an independent agent, broker or perhaps just a very caring friend, it’s your job to make prospects consider putting a Life Insurance plan in place so that they can ensure that their families are protected before it’s too late.
While no one is ever going to love Life Insurance, they might eventually learn to appreciate it, especially if you use the correct sales procedures and references that will help you get your prospects into the right frame of mind. If you learn how to sell the value of life insurance, then your clients and friends are more likely to feel good about paying money for something that is a lot easier to just ignore.
Here are a few ways to help prospects see the value of life insurance:
Timing Is Everything
There are a few moments in an individual’s life where they are more open to the discussion of life policies. Whilst a school leaver who is about to embark upon his journey of a lifetime might not give life insurance a second thought, the people who are in the following stages off life might be more susceptible to listen to what you have to say:
- Engaged couples or newlyweds
- Individuals who have recently had a baby
- New homeowners
- People who have recently experienced the loss of a loved one
- A milestone birthday has just passed
The people who are in the life stages listed above have probably already given thought to life cover and simply need someone to broach the subject and ease them into the process.
Avoid Using the Term “Life Insurance”
People usually tend to be more comfortable talking about Life Insurance when the words “life insurance” are actually not uttered. This is quite understandably so in that no one wants to have a discussion where they feel they are perhaps tempting fate.
Referring to terms with more positive connotations like “mortgage protection” or “family coverage” might make them relax a little and feel positive about the fact that they can do something extra to make sure that their loved ones are always taken care of.
Let the Figures Do the Talking
This is the part where reality really hits. Maths does not lie and if you use it to explain the advantages of life cover, your prospects are more likely to listen intently.
Ask your client how much money their families would need to make it through each month without them. Would they have enough to cover bills? Could they continue to live in the same home? Drive the same car? Would there be enough money to help with additional child care?
Allow your client to answer these questions out of their own and then let the story unfold for itself.
While this might seem like a brutal way to convey a message, there’s no denying that it’s a story that holds true to the numbers and numbers are what is of concern. The prospect will very quickly realise that the picture might not be very pretty without life insurance in place.
Tell A Story
Most of us learn best by example. So, tell a story about a family you know who needed coverage but didn’t have any. Describe their hardships and what they had to do to make ends meet. If you prefer, you can keep your message in a positive light by explaining a scenario where the deceased did have life cover and that the family was well provided for.
Always stick to telling true stories, which should be easy. You will want to keep privacy in mind, of course. Keep the confidentiality of those involved in the story by not disclosing any real names, unless the participants have given you permission to do so.
Have Someone Else Tell Their Own Story
There are many videos and articles online where individuals and families share their stories of how they were left picking up the pieces once their loved one and dependent departed. The sad reality of how family members battle to make ends meet while covering funeral costs and figuring out a new plan in life is enough to leave anyone with a heavy heart and the hard realisation that life insurance is so utterly important.
Links to videos can be emailed to prospects or can be included in your E-newsletter. You could also play them on a screen in your waiting room or if you have social media pages, you could share them on there too.
Sometimes the honesty and sheer emotions that come from someone who has lived the experience is all it takes to encourage a prospect to take preventative measures so that they do not make the same mistakes.
Talk to The Family as A Whole
Perhaps a person is in denial and they do not want to discuss their death and the fact that one day they will have to leave this world and their dear ones behind. Maybe they simply don’t want to talk about something that they have to pay for, but won’t benefit from at all once they have departed.
It’s a whole lot easier getting a husband and a father to see the value of life insurance when he has his wife seated next to him and he can see the worry in his partner’s eye.
At the same time, this might give the family an opportunity to discuss a few other “what ifs” that might be taboo subjects at other occasions. Maybe the family could discuss life policies together and agree on what needs to be done and how it should be done as a unit.
Talk About Their Kids
When someone becomes a parent, their whole outlook in life changes and all of a sudden, they become these protective beings. Most people will do anything for their kids at the drop of a hat, so why should life cover be omitted from this list?
Funnily enough, there have been many scenarios reported by insurance brokers where all they had to do to sell the value of a life policy was talk about kids, with very little mention of the phrase “life insurance”. This is because people love to talk about their kids, so much so that when they do, the neurons in their brains that are associated with taking care of family are on overdrive and they might come up with the realisation of how crucial life cover is all on their own.
Use Assumptive Conversation
This simply entails that you talk about life insurance as you would about going to the shop to buy bread and milk. It’s just one of those things that must be done. The question is not whether to buy it or not. The questions are what kind do you want and how much do you need? When you assume in your conversation with a prospect that everyone in his or her life has cover that will pay out once they pass, they will likely automatically assume that they need it too.
Put the Prices on The Table
When it comes to life insurance, there’s no need to hide the figures. This is because the premiums for life cover really are very little when compared to the potential pay-out. This is especially the case if you are a young and healthy newlywed.
Of course, the older you get and as your health declines, the more your premiums will increase. But this also means that the need for life insurance is more crucial and that it needs to be put in place as soon as possible if it has not yet been applied.
No matter one’s age, however, your prospective clients might be surprised at how cheap life insurance actually is, so the figure is worth the mention.
Ask About the Last Funeral They Went To
Sometimes we go through life very unaware of death, that’s until someone close to us passes away, that is.
When you ask someone about the last funeral they went to, they are very likely to reply with something along the lines of “I never thought I would have to say goodbye to her” or they might make a comment that “life is short”. This is because when one thinks of a funeral, death becomes a reality and while your prospect was once in denial about it, they might now be more accepting that it is inevitable.
Prompt a conversation with questions like:
- When last did you attend a funeral?
- How did it make you feel?
- Would you want a similar funeral?
Avoid Using Statistics
Talking about the subject of death is hard enough, there’s no need to hurt the brains of your prospects further by throwing non-applicable statistics at them. Avoid approaching them with figures like “did you know that 9 out of 1000 people die each year” or “did you know that a person has a 1 in 14 chance of catching a disease with a 20% treatment rate over the next 7 years” …blah blah blah.
No one can relate to these numbers. They don’t know if they are the “one” in 14 and why should they be set into panic mode thinking that they could be. This approach might possibly be counter-productive altogether and could move the focus off the topic of why life insurance is valuable.
Associate Life Insurance With being An Adult
As teenagers, we dream of having the freedom that adults have. Little do we realise then, that this freedom comes with a ton of responsibilities, financial ones included.
Engage your prospect and start a conversation that discusses adult life. Mention the good times, the milestones, and then sway to the topic of how adulthood comes with obligations and commitments.
Remind your client or friend that life would be made somewhat easier or at least one will have more peace of mind knowing that their commitment to care for their family will be covered once they are gone and for many years thereafter.
Sell for The Right Reasons
Last, but not least, learn how to sell the value of life insurance for the right reasons.
While selling life insurance might be your job, you should sell the “product” because you believe in it and not only because it’s going to put bread and butter on your own table.
Client’s are clever, they can tell when you are truly passionate about something or when you are simply trying to meet your monthly quota. If you truly believe yourself that Life Insurance will be of value to them, then they are very likely to believe you wholeheartedly too.
Life Insurance is sold to protect families, remember that.
While not all of the suggestions listed above might work with every prospect and perhaps you have been including many of them in your approach already, having them set in your mind as a guideline will help as you adapt them to each situation or personality.
There are unfortunately no magic tricks that will make people automatically see the reasoning behind life insurance. There are only topics of conversation and hard facts that can back up our claims and help to persuade prospects that life insurance will only make “life” better.
If there are at least one or two ideas in the above list that can help you to sell the value of life insurance more often, then we can sleep well tonight knowing we helped make more families safe.