Life Insurance Sales Ultimate Guide

Do you feel like your life insurance sales have grown stagnant?

Knowing how to find leads, nurture prospects and close the deal can be tricky for even the most seasoned life insurance producer.

This guide will give you the insight and ability to look at your current practices and see where you need to make some adjustments in order to give your sales new life.

Life Insurance Sales: Table of Contents

  1. Chapter 1: Are You Positioned For Life Insurance Sales Success?
    1. A Successful Life Insurance Agent Has These Six Attributes
    2. Here’s How the Little Guy CAN Win Life Insurance Sales
    3. Building Trust With Prospects to Sell More Life Insurance
  2. Chapter 2: How to Convince Prospects to Buy Life Insurance
    1. How to Educate Clients About the Value of Life Insurance
    2. How to Get People to Buy Life Insurance: Appeal to Their Concerns and Counter Objections
    3. How to Choose the Right Life Insurance Policy to Sell to Clients
    4. Why You Should Ditch the Spreadsheets
  3. Chapter 3: Life Insurance Prospecting
    1. Selling Secret: Target the Right Life Insurance Market Segments
    2. Life Insurance Prospecting Tips
    3. Connecting With Life Insurance Customers in a Digital World
  4. Chapter 4: Life Insurance Sales
    1. Accelerate Life Insurance Sales With a Great Cover Letter
    2. Referrals: They’re Gold to Life Insurance Agents

Next Steps: Get Ready for Your Life Insurance Sales to Take Off

Accelerating Life Insurance Sales

Chapter 1: Are You Positioned For Life Insurance Sales Success?

frustrated worker

There’s a difference between surviving and thriving.

Success doesn’t just happen.

Getting where you want to be requires a lot of hard work and strategic planning or you’ll be spinning your wheels, just getting by.

How do you position yourself to reach your sales goals?

A Successful Life Insurance Agent Has These Six Attributes

There are some characteristics you need to have in order to flourish and without them, you’re likely to keep running on the hamster wheel, never getting anywhere.

Do you have these six attributes?

1. Faith in the concept of life insurance

You should believe in your product enough that you’re also a customer of that product  –  you’re protecting your own family.

2. Passion for helping people

Let your prospects see that you’re enthusiastic about what you do and how you can help them reach their goals.

3. Focused on their goals

The producers who are the most effective are driven by the pursuit of their business objectives.

4. Motivated by money

Make no bones about it – successful producers are driven by dollar signs.

It’s okay to want to make a good profit!

Actually, studies have shown that those who are motivated by money tend to do better than those who have different goals.

5. Effective communicator

It can be difficult to sell an abstract product to a person who in all likelihood won’t see the payoff themselves.

One of the most important attributes you can have is to be able to relay confusing information in a way in which your prospects not only understand but also see the benefit in purchasing your product.

6. Resilient

Sales is hard.

You have to be able to cope with disappointment and not be deterred by rejection.

It’s going to come, but it doesn’t have to derail your motivation to go for your goals.

When you have these characteristics, you can expect success!

Here’s How the Little Guy CAN Win Life Insurance Sales

Sometimes the fight against the “big” guys can look like a losing battle.

They seem to have an endless supply of resources, leaving you feeling like there’s no way you can compete.

Here are some tips you can use to do battle and come out the winner.

Educate your customers

It can help to think about what they need to know about buying life insurance.

Once you have a handle on that, you can create valuable, relevant chunks of content to share with them using a variety of mediums.

Be relatable

How are your storytelling skills?

Today’s consumers love to hear your stories.

Use your story to:

  • Strategically put the emphasis on your customers, not your product.
  • Highlight how you can solve their problems.
  • Show them how you can help them protect their families’ future.

Build Trust With Prospects To Sell Life Insurance

You won’t gain customers  –  and increase sales  –  if you don’t have their trust.

It’s that important.

How can you do it?

Here are three ways to build trust with your prospects.

1. Use social media to your advantage

Your customers have changed and you need to keep up.

They’re active online and they want to work with someone who can meet them where they’re at.

If you don’t already have a social media marketing campaign – the time is now!

2. Get Comfortable with social media

Just having a social media account won’t have customers banging down your doors, ready to throw their business at you.

You have to learn the ropes.

But don’t panic – it’s not hard!

You can take what you know and combine it with your online presence to connect with your prospects and build trust.

The best way to do it is to just start writing.

You can begin with some quick blurbs for Twitter and move into writing a few blogs that you can post on your social media sites.

3. Enjoy the rewards

All this work will have the effect of positioning you as an expert in your industry.

You’re building trust and soon prospects will be coming to you – especially when they face the loss of a loved one.

They’ll know exactly who to come to for help getting their own affairs in order.

Chapter 2: How to Convince Prospects to Buy Life Insurance

life insurance sales shaking hands

Unfortunately, life insurance doesn’t sell itself.

You have to know the right way to approach possible clients, addressing their need for your product and showing them how your solution is their best option.

Here are the ways you can accomplish this.

How to Educate Clients About the Value of Life Insurance

People don’t always understand what they need.

You have the job of educating them!

Show them that needs trump wants.

They may want term life insurance because the monthly price tag is cheaper.

Their excuse may be that they’re going to invest the difference between the term cost and the expense of cash value coverage.

The problem is that they don’t.

Check out these three telling statistics:

  1. A study published by Bloomberg shows that 18% of people who earn between $100,000 and $149,000 a year don’t have any savings. Almost half of this same demographic have less than $1,000.
  1. The Federal Reserve Board did a study and the results showed that 47% of those participating would have a hard time coming up with $400 for an emergency.
  1. Research by economist Edward Wolff also uncovered some astounding results. An average family that makes approximately $50,000 per year could only cover their expenses for six days if they were to lose their income.

What does this mean?

You have to sell your clients what they need and not what they want.

How to Get People to Buy Life Insurance: Appeal to Their Concerns and Counter Objections

Times have changed and so have your customers. Your old tactics probably aren’t as effective as they once were, right?

In order to get people to buy what you’re selling, you have to be able to see life insurance they way they do.

Here are the six things you should keep in mind as you’re trying to sell to modern consumers.

1. They do see the value

Six out of 10 Americans have life insurance coverage that they carry in order to protect the security of their family.

Here are the reasons that people are buying life insurance:

  • 51% purchase it to cover burial and funeral expenses.
  • 34% buy it to replace lost income.
  • 26% purchase it to pay off their mortgage.
2. They know they need more

Well, 30% of them do and 25% wish their spouse would buy more coverage.

Thirty percent may seem small, but it adds up to more than 70 million Americans!

3. They think they can’t afford it

Did you know that 65% of Americans think that life insurance is too expensive and that their other financial obligations are such that they can’t afford it?

The issue is that some people think it’s more expensive than it actually is.

It’s important for you to combat that thinking with the truth!

4. They worry about the future

It’s hard for people to understand the role of life insurance in retirement planning, especially when they’re consumed with worry about the country’s overall economy and their own lack of saving for retirement.

5. They like to make the purchase in person

Though they may be doing most of their research online, when it comes to making a purchase, they want to be able to do it in person, face-to-face.

6. They don’t know how the cost is calculated

Most Americans do understand that their age and health status play a role in calculating their life insurance costs.

What they don’t know is that family history, driving records and even their hobbies can have an effect.

How to Choose the Right Life Insurance Policy to Sell to Clients

Your customers trust that you’re steering them in the right direction when you suggest policies for them.

When in doubt, here are six questions you can ask to make sure that you’re giving prospects and clients the best life insurance product options, while also doing what’s best for you.

  1. Is there a limit to the term policy and is it convertible?
  2. If and when a conversion happens, will your customer be able to switch to the best permanent policy?
  3. Will the client have the future option of reducing the face value of their term policy?
  4. What about a conversion credit?
  5. If the carrier has more than one option, is the compensation the same on level term products?
  6. What about compensation for a policy that was converted?

The bottom line is that you need to know all the ins and outs of a policy before you decide if it’s one that you want to sell to your clients.

Why You Should Ditch the Life Insurance Spreadsheets


The fact is that, while they may remain a tool you can use, life insurance spreadsheets aren’t as effective as you may think they are.

Let’s take a look at the different elements that have an impact.

1. The entire industry is in flux

Low interest rates and other factors have put carriers in a crunch.

In order to remain competitive, they have to change up what they’re offering and get innovative.

They have found themselves in a sort of balancing act and some of the changes are good for you and others aren’t!

2. Price isn’t the biggest factor anymore

This is one of the reasons that life insurance spreadsheets don’t tell the whole story any longer – price is just one element that comes into play, but it isn’t the biggest.

3. Think about diversity

There are some other important factors that should be a part of your decision-making process when it comes to the insurance products that you’ll offer.


  • The features of the product.
  • The conversion options for term policies.
  • The underwriting method of the carrier.
  • The service standard.
  • The customer service.
4. The best ways to choose a life insurance product

Talk to a brokerage manager at your life insurance brokerage firm.

They have the necessary knowledge and skills to help you see the big picture and not focus solely on the price tag.

Chapter 3: Life Insurance Prospecting

man using calculator

You won’t be able to maintain a very successful business if you don’t have a tried-and-true method to bring in clients.

It’s all about knowing how to connect – who you should sell to, tips for prospecting and doing it all in a digital world.

Selling Secret: Target the Right Life Insurance Market Segments

You want the biggest bang for your buck, which means you can’t afford to be too picky about who’ll you reach out to.

Here’s what you need to think about.

1. Don’t ignore the middle market

Your most lucrative sales will be those that are for permanent coverage.

It used to be only the affluent who purchased this type of coverage, but that isn’t the case anymore.

Ignoring the middle market could cause you to miss out on the best group to target!

2. The time is now

The majority of the middle market is made up Baby Boomers.

They’re in their prime earning years and are about 10 years from retirement.

It’s the best time to approach them about securing their future.

Plus, this demographic is ripe for the picking because most financial firms and advisers aren’t targeting them.

By going after their business now, it could mean long-term profitability and business growth for you.

Life Insurance Prospecting Tips

It’s great to compile tons of leads.

But, does the quality of those leads matter?

Of course, they do.

You need quality and quantity leads.

Striking the right balance

Don’t sacrifice customer retention to get new leads.

You should be building relationships and deepening connections, in addition to seeking out new business.

Why do you need to nurture those clients whose business you’ve already secured?

  • They already know you and like you.
  • You have their trust.
  • They’re obviously comfortable making a purchase from you.
  • If you take care of them, they’ll continue making purchases from you.
  • They may refer you to friends and family or introduce you to new prospects.

Your business will continue to thrive and grow when you give your loyal customers the attention they deserve as you continue to nail down new customers.

Connecting With Life Insurance Customers in a Digital World

By now, it’s no secret that technology has changed the way you interact with everyone, including your customers and prospects.

If you want to connect with customers, you need to meet them where they are.

1. Online introductions have benefits

The consumers of today want to be able to get to know you online before they make a more personal contact.

This is why your social media accounts need to be active, up-to-date and provide a ton of value.

Don’t forget the power of blogs, emails and maintaining a well-designed website.

It’s important to note that even the slickest website or the coolest Facebook account won’t work without the personal, relationship building aspect.

2. The stats don’t lie

Your connection to your prospects and clients is powerful.

Check out this data:

  • 97 percent of loyal customers will renew their policies with you.
  • 25 percent will purchase more insurance products than someone who isn’t loyal.
  • A loyal customer is 2.5 times more likely to refer you to someone else.

The lifetime value of a loyal customer is seven times higher than a customer with whom you haven’t maintained a relationship!

That’s not an insignificant return on investment!

Chapter 4: Life Insurance Sales

life insurance sales highway

You’ve gotten leads, nurtured them and now it’s time to make a sale.

Here’s what you need to know about accelerating your sales and the importance of referrals.

Accelerate Life Insurance Sales With a Great Cover Letter

Sometimes a small detail can have a big impact.

Your cover letter may not seem like all that big of a deal – but it is!

Why the cover letter matters

There are three big benefits you stand to gain when you have a detailed cover letter.

  1. It will ensure the life insurance applications goes far.
  2. It raises the chances of the application getting approved.
  3. It helps you to make more money.

These are the elements that your cover letter should include in order to be the most effective:.

  • story about who your client is. Share what you know about them personally and professionally, as well as why they want to make the purchase.
  • Write about what you know about their medical history and hobbies or travel that may increase their risks for death or injury.
  • Give a description of what their diet, exercise and overall lifestyle habits look like.
  • How did the sale develop? Tell how you came up with the face amount and any beneficiary designations.

When you paint your client in the best possible way, you’ll be raising your chances of getting a sale.

Referrals: They’re Gold to Life Insurance Agents

Referrals aren’t the goose that laid the golden egg like you may have thought.

Of course, they’re important and referrals definitely add value to your sales strategy, but you may need to change up your tactics a bit!

Here’s how you can build a strong referral network.

  • Look for those with whom you already have some sort of connection, like your geographical location, hobbies or interests. These leads are more likely to be open to your products and services.
  • Use social media. It’s a great way to identify those who may be the most interested in talking with you or at least wanting to know more.

You’re actually connected to more referral opportunity than you realize.

Using your customers is great, but it isn’t the only way to go!

Next Steps: Get ready for your life insurance sales to take off

You’ve been given the tools you need to give your life insurance sales a boost.

Once you’re aware of the importance of educating your clients, you’ve determined the way to choose the best life insurance policy for them and you know how to handle referrals, your confidence will grow.

When you’re in that position, you’ll be more effective than ever.

To find out more about how Leisure, Werden & Terry’s specialized services can help you reach your goals, give us a call today!