How to Sell Life Insurance as an Independent Agent

To be a successful independent life insurance agent, you need to understand the basics of the industry.

Most states require agents to pass a licensing exam to become licensed.

Building a strong network of contacts is essential to finding potential clients.

You can start by reaching out to friends, family, and colleagues to let them know you're now a licensed agent.

According to the article, 75% of new clients come from referrals.

As an independent agent, it's essential to understand the business you're in. Life insurance is a complex product that requires a deep understanding of the market, competition, and customer needs.

The life insurance industry is a multi-billion dollar market, with various types of policies catering to different demographics and risk profiles. For instance, term life insurance is often preferred by younger individuals with families, while whole life insurance is more suitable for older adults with established estates.

To succeed as an independent agent, you need to stay up-to-date with industry trends, product offerings, and regulatory changes. This includes familiarizing yourself with the various types of life insurance policies, such as universal life, variable life, and indexed universal life.

To start selling life insurance, you'll need to complete your state's pre-licensing education requirements. This is in addition to preparing for the life insurance licensing exam, which will test your knowledge of local and national laws about selling life insurance.

You'll want to have a basic understanding of these laws to do well on the exam and in your career. This familiarity will also help you navigate the concepts being taught in your life insurance licensing prep.

Local and national laws are crucial to understanding the business of selling life insurance.

Independent marketing organizations, or IMOs, are a crucial part of an insurance agent's business. They provide top-level contracts that agents need to succeed.

Insurance companies often don't have the staff to support directly contracted agents, which is where IMOs come in as a middle man between the distribution force and the direct insurance carriers.

A good IMO can help manage your book of business, providing services like leads, CRM, marketing programs, and hiring new agents.

Top-level commissions are also available through a reputable IMO, as they act as your up-line.

As an independent agent, it's essential to understand the different types of life insurance products you can sell. There are two primary categories: term life insurance and permanent life insurance.

Term life insurance provides coverage for a specific period, usually between 10 to 30 years. It's generally less expensive than permanent life insurance but doesn't build cash value over time.

Permanent life insurance, on the other hand, offers coverage for the insured's entire life as long as premiums continue to be paid. This type of insurance can build cash value over time, and some policies allow policyholders to qualify for loans or withdraw cash.

Here are some examples of permanent life insurance policies:

Whole life insurance is a type of permanent life insurance that's guaranteed to last a person's entire life. This means that whole life insurance policies are typically guaranteed to age 121, so you don't have to worry about a term period expiring.

Whole life insurance premiums never rise over the policy's life, which can be a huge relief for those who value predictability. You can also expect to see a savings account grow over time, known as the cash value accumulation. In a nutshell, there's a savings account inside a whole life insurance policy that grows over time.

Whole life insurance policies can be quite lucrative for insurance agents, yielding the highest commissions, often exceeding 100% of the total premiums for the policy's first year. The exact percentage depends on the age of the policyholder.

Some key features of whole life insurance include a fixed premium, guaranteed death benefit, and a fixed interest rate on the cash value of the policy.

Term life insurance is temporary coverage that usually lasts for a specific duration of time, such as 15, 20, or 30 years.

Term life insurance plans pay the lowest commissions, ranging from 30% to 80% of the policy's annual premiums.

This type of coverage offers a fixed payout if the insured person dies within the coverage period.

Term life insurance typically has lower premiums compared to permanent life insurance.

It's worth noting that term life insurance does not build cash value over time, unlike some other types of insurance policies.

Selling life insurance is about presenting yourself well and speaking in a language your prospects understand. You need to demonstrate empathy with their situations and explain how your insurance products will benefit them.

Potential clients are looking for solutions, not just a list of features. They want to know how your insurance will solve their problems, not just what it includes. For example, a 24x7 helpline is a feature, but it's the solution it provides that's more important.

Asking the right questions can help your leads focus on what could happen without the proper insurance. Consider asking them: If you passed away, how long would your family be able to live on your savings?How much do you think a funeral costs?What would happen to your job if you were permanently injured?If you’re injured or hospitalized for a long period of time, how would you and your family be supported?

These questions can help them see the value in your life insurance solutions and how they can safeguard against potential risks.

Partnering with an IMO can be a game-changer for life insurance sales agents. An Independent Marketing Organization (IMO) links Life Insurance carriers and independent life insurance sales agents.

It's essential to partner with a reputable Life Insurance IMO that offers a good mix of carriers and products. A reputable IMO can empower you to sell more and earn more.

A fully-vested contract is a must-have when partnering with an IMO. This ensures you have a stable and secure agreement.

Selling Life Insurance can be overwhelming when working alone, but a good IMO can make a significant difference. Companies like The Brokerage Inc. exist to support independent life insurance sales agents.

For more information on how to find the best Life Insurance IMO, check out the provided guide.

Selling life insurance from home offers several benefits that can boost your productivity and savings. You can rededicate the time you'd otherwise spend on your commute to growing your life insurance business.

With the flexibility to work from home, you may be able to increase your productivity by avoiding office distractions. This means you can focus more on selling life insurance and less on navigating office politics.

Selling life insurance from home can also help you save money. You'll reduce your transportation, meal, and wardrobe expenses, which can add up quickly.

Universal life insurance can be a complex product for agents to sell, but understanding the commission structure is key to success. Commission rates for universal life insurance policies are at least 100% of the premiums the policyholder pays in the first year up to the amount of the target premium.

The commission rate decreases for any premiums the insured pays above the target level in the first year, which can impact your earnings.

To get accurate quotes, you can use the life insurance quoter tool in the broker back office. This tool allows you to run comparisons for term life, GUL, and final expense.

The tool is very simple to use and can be accessed by all contracted agencies. You can also use Winflex Web for more advanced permanent life insurance illustrations.

Having access to these quoting tools can save you time and help you find the best policy for your clients.

Selling life insurance is all about the pitch. You need to present yourself well and speak in the language your prospects understand.

People are looking for a solution and benefits, not a list of features. You should examine and understand how the features you offer solve problems so you can make appropriate solution recommendations.

Asking the right questions can help your leads focus on what could happen without the proper amount or type of insurance. For example, you could ask:

By getting answers to these questions, you can explain how the life insurance solutions you provide can help them safeguard for those situations.

Dealing with rejection is a crucial part of selling life insurance, as you'll likely face it often.

Getting used to rejection will help you stay motivated and focused on your goals. If you can handle rejection, you'll be better equipped to handle difficult customers.

Working in retail sales can be a great way to develop these skills, as you'll encounter common issues life insurance representatives face.

As an independent agent, you need to be proactive in generating leads and finding potential clients. You can start by creating a lead generation strategy, which is crucial in a highly saturated market like life insurance.

To generate leads, consider purchasing lists, engaging insurance marketing organizations or field marketing organizations, or even getting referrals from family and friends. Participate in insurance and community events to spread the word about your services.

You should also create a website and profiles on social media platforms like Facebook, LinkedIn, TikTok, and Instagram, and keep them regularly updated. This will help you establish a strong online presence and connect with potential clients.

Selling life insurance can be a lucrative career choice, with the financial services industry generating more millionaires than any other industry.

You can earn ongoing, residual income from life insurance sales, which is a big difference from a traditional job where your paycheck is the same regardless of how much effort you put in.

With a strong work ethic and willingness to establish relationships with clients, you can be rewarded with higher income potential that has strong potential for growth.

According to the U.S. Bureau of Labor Statistics, median salaries for Insurance Sales Agents are about $60,000 USD.

Top earners in life insurance sales can reach as high as six figures, making it a great way to make a good living, especially for those who are successful and passionate about their work.

You can make a six-figure income by getting your "book of business" up to several hundred clients, giving you the potential to earn a good living while being your own boss.

Generating life insurance leads is crucial for success in this industry. It's the lifeline of a career in insurance sales.

You need a sound strategy to catch the attention of potential buyers before your competition does. Finding good leads is a big challenge in a highly saturated market like life insurance.

To generate leads, you can start by networking and using referrals. Encourage family and friends to refer you.

You can also purchase lists or engage insurance marketing organizations or field marketing organizations to help with marketing and lead generation. Many independent agents do this.

Don't forget to create a website and profiles on social media platforms like Facebook, LinkedIn, TikTok, and Instagram.

Selling from home requires a strong relationship with your customers. Building trust and rapport is key to success in selling life insurance from home.

To sell life insurance from home, you'll need to be licensed and insured as an independent life insurance salesperson or find an employer that allows remote work.

Establishing a strong professional relationship with your clients is crucial for success. This involves understanding their needs and providing personalized solutions.

You can establish a strong relationship by using practical strategies, such as understanding your clients' needs and providing personalized solutions.

Finding customer leads can be a daunting task for life insurance agents. They often have to rely on their own efforts to find new leads.

Paying for exclusive leads is an option, but it can be extremely expensive. You may need a very high close rate just to break even.

Life insurance agents may receive leads from their insurers, but there's a strong likelihood that these leads have already been contacted by other agents.

To be successful as an independent life insurance agent, you need to be comfortable with inbound sales, calling warm outbound leads, and upselling. This requires a strong ability to overcome objections and engage with clients to provide tailored insurance solutions.

In a sales environment, building rapport with clients is key. If you're skilled at establishing trust and understanding your clients' needs, you'll thrive in insurance sales.

To get licensed to sell life insurance, you'll need to meet the basic requirements. You must be at least 18 years old to apply.

You'll also need to complete pre-licensing education, which will give you a basic understanding of local and national laws about selling life insurance. This will help you feel more confident and prepared for the licensing exam.

To prepare for the exam, plan to study for at least 3 months. Look for a course that offers flexibility and includes essential study items like a pre-study assessment, study calendars, and Qbanks.

Here are the steps to get licensed:

After passing the exam, you'll need to submit your fingerprints, pay a small fee, and designate an Errors and Omissions insurance provider with your state's insurance department. This will allow you to get your license approved and receive a unique NPN number from the National Insurance Producer Registry (NIPR).

Selling life insurance has surprisingly few entry barriers.

You don't necessarily need a college degree to pursue a career in life insurance sales. Many insurers implement mentorship and training programs to help new hires prepare for their jobs.

These training programs are designed to get you up to speed quickly, so you can start selling life insurance policies to clients.

Life insurance policies are in high demand, which means there are plenty of opportunities to work in the sector.

Finding your niche is a crucial step in building a successful career as a life insurance agent or broker. Life insurance policies come in different forms, including term, whole, and universal life insurance plans.

You can choose to offer different types of plans, such as term, whole, and universal life insurance, or specialize in certain areas. Hybrid life insurance policies that combine a death benefit with an annuity and long-term care coverage are also available.

Developing your expertise in a specific area can help you stand out as an expert and build your brand. This can make it easier to sell life insurance from home.

Some agents and brokers even branch out to health insurance policies, expanding their niche to include other types of insurance.

Having great customer service skills is essential for success in selling life insurance. You'll be working directly with customers, and being able to understand and meet their needs is crucial.

Great communication skills are also vital, especially when working with potential customers. You need to be able to quickly make your pitch and respond naturally and appropriately to their response.

Being able to overcome objections is a key skill for success in insurance sales. This involves being able to address concerns and provide tailored insurance solutions that meet the customer's needs.

Building rapport with clients is also important, as it helps you to understand their needs and provide them with the right insurance solutions. This involves being able to engage with clients in a way that is natural and authentic.

Being comfortable with inbound sales, calling warm outbound leads, and upselling is also a key part of being successful in insurance sales.

Selling life insurance can be tough, especially if you're not comfortable with difficult conversations and rejection. It's a challenging market out there.

Navigating regulatory compliance requirements can be a hurdle, as it's a complex and ever-changing landscape. You have to stay on top of the latest rules and regulations to avoid any issues.

Establishing trust with someone you just met is crucial in selling life insurance, but it can be hard to build that rapport quickly. You have to be genuine and transparent in your approach.

Here are some common challenges independent agents face in the life insurance sales process:

Selling life insurance from home can be a liberating experience, especially when it comes to flexible work hours. You can set your own schedule, which is a great perk.

However, be prepared for instances that may require you to meet with clients in-person outside your residence. This can be a challenge, especially if you're not comfortable with traveling or meeting new people.

Selling life insurance from home can be a challenging career due to unpredictable income. Your next paycheck can be difficult to predict because it's based on the number of successful sales.

Insurance sales are a commission-based role, which means your income will depend on the number of sales you make. This can be a problem if you're not used to working under pressure or if you have a lot of expenses to pay.

For example, a successful salesperson might earn a significant amount one month, but struggle to meet their targets the next. This can make it hard to budget and plan for the future.

To mitigate this issue, you need to be proactive and work hard to make sales. This might mean putting in extra hours, attending networking events, or finding new ways to reach potential customers.

Trying hard to sell policies right away can ruin clients' trust. By being patient and focusing on establishing good relationships, you're more likely to secure a long-term customer.

Establishing trust takes time, and rushing the process can have negative consequences. This is a sure-fire way to lose clients' trust.

Being patient and building relationships can lead to referrals from satisfied customers. They may be willing to recommend you to other potential clients.

Focusing on long-term relationships rather than short-term gains is a key strategy for success. This approach helps you build a loyal customer base.

Securing a long-term customer is more valuable than making a quick sale. They can provide a steady stream of referrals and repeat business.

Finding leads can be a challenge for life insurance agents. Many agents are responsible for finding their own leads, which can be difficult as these leads may have already been contacted by several other agents.

Paying for exclusive leads can be an option, but it can be extremely expensive. In fact, you may need to have a very high close rate just to break even.

Selling life insurance can be tough, especially if you struggle with difficult conversations and rejection. You'll need to navigate a competitive market and establish trust with someone you just met.

Some of the other challenges you may face include navigating regulatory compliance requirements and dealing with long sales processes. These can be time-consuming and may require a lot of paperwork.

Here are some of the key challenges you may encounter:

As you navigate the challenges of selling life insurance, it's essential to stay focused on the goal of helping clients secure their financial futures.

Below are some helpful life insurance sales tips.

First, understand that building a relationship with your client is key to successful sales. This can be done by asking open-ended questions to understand their needs and concerns.

Being transparent and honest about the product and its benefits is crucial in building trust with your clients. As the article on tips for selling life insurance suggests, being helpful is essential.

Knowing your product inside and out is vital to effectively addressing client concerns and questions. This means being familiar with the policy terms, conditions, and benefits.

You can also use the tips for selling life insurance to your advantage by being proactive and anticipating client needs. This can include offering additional services or products that complement the life insurance policy.