Selling Life Insurance is not easy and if you only sell it on price alone, you are making the job even harder.
Price should never be the only consideration for a prospect, as there will always be another company with lower rates. People who are switching their life insurance just to save money, will leave you just as fast when they receive a cheaper and faster quote from a call center agent or even a website, which can give you a quote in seconds!
Many prospects consider price as a major factor in their decision making process. The trick is to get them in the right frame of mind to understand the value of life insurance. You need to make them feel good about spending money for something, which they could potentially just overlook.
Here are a few ways of making your prospect see the value of life insurance:
1. Use Examples
By telling prospects a story about a family who needed life insurance and didn’t have it, or a story about a family that did have coverage and how important it was, the easier it is for your prospect to see the value in having life insurance coverage.
Don’t make up a story, have something real and tangible that will have a meaningful impact. A picture, a testimonial or even a video can work well.
For example, there are so many videos online of people explaining how life insurance either saved their family or the lack of it destroyed them.
Be creative in the way which you share this with your prospect. Although it’s probably not the most common way of prospecting for life insurance, social media is probably the best platform for this – Why?
- According to statistics, there are almost 1.96 billion users on social media.
- Prospects are always on the lookout for businesses with who they can connect with.
- Prospects are interacting and not just with friends and family.
By using Social media, this will appeal to millennials who are most likely to use social media platforms as a primary source of information.
2. Do It At The Right Time
People aren’t always open to having a discussion about life insurance. However, there are certain times in a person’s life that they will be willing to listen to you.
Finding prospects based on their current life situation will save you a lot of time and effort. You will spend less time convincing a prospect on the value of life insurance.
You are going to have to do some homework to identify these key life changing events in your prospects world. Getting married or having a baby, buying a house, changing careers or even a significant birthday are some of these key milestones.
There are a few ways to stay in tune with what’s happening in a prospects life:
- If you have your prospects details as a contact on an Instant Messaging platform like Whats-app, you can view their profile updates periodically. You may come across updates of marriage proposals, pregnancies and babies being born, which are all triggers for changes in life insurance needs.
- Use Social Media to see and hear what’s happening in their lives. On Facebook, there is an option to turn on notifications of any changes in friend’s profiles or status updates, which could be a useful tool.
3. Use Statistics
Statistics may have an effect on a prospect in a deeply emotional way. However statistics alone, won’t mean much.
Instead of just quoting some statistics, show me something concrete. It must also be something relatable – if I can’t relate to numbers, they will mean nothing to me.
Here are a few examples of relatable statistics:
- Say how much it costs to bury me by showing me some invoices from local funeral homes.
- Speak about what percentage of children who lose a parent go to college versus the children who don’t.
- Chat about the statistics around disease and disability rates.
4. Compare Prices
Although we are saying that price is not the only value indicator, it shouldn’t be ignored. There is a value proposition in itself when talking about price. When it comes to young healthy people, life insurance isn’t that expensive when you consider the potential pay-out.
Your prospects should know how cheap some life insurance policies can be. It’s also a good exercise to compare the cost of a perfectly healthy young adult with that of an average middle aged adult. This can prove the importance of buying young.
Also speak about the potential cost of not buying. Compare how much money someone could save by buying your insurance policy with the potential cost of not buying it.
Use phrases like these, to illustrate your point:
- “By not buying this life insurance policy you will save (so much money) a month… but what’s the potential cost of being diagnosed with a disease like cancer, after making that decision?
- “If you don’t increase your coverage limits, you will save (so much money) a month… but what’s the potential cost of your children’s education in the future and how will it be paid for should something happen to you?
Let the prospect ponder and think your question through before you step in.
Although some prospects may think that they do, most of them don’t actually understand how life insurance really works.
When clients feel that you understand the product you are selling, they will feel a lot more contented about the decisions which you are guiding them to make.
Prospects will also feel more confident that you will be a positive resource in the event of a claim.
The following factors are essential in providing a client with relevant life insurance knowledge:
- Don’t use insurance jargon or terminology.
- The ability to explain a subject to anyone regardless of their age, background, or education.
- Ask questions and engage with your prospect
- Do not lecture them!