As an insurance agent, you know one thing to be true—any sale is a good sale.
There’s never a time to get upset about not selling a bigger policy. However, that doesn’t mean you can’t want to do better than “good enough.” There’s always room for improvement.
Even though it may be your goal to sell bigger insurance policies, it’s not always possible. Some prospects know what they want and they’re going to stick with it no matter what you say.
If you’re ready to sell bigger insurance policies, these five tips can put you on the path to success.
1. Don’t just suggest, explain why the client needs a bigger policy
It’s easy to suggest that a current client or lead should purchase a bigger policy, but that’s not generally enough. You must explain why this is a good idea. Give them reasons to move down this path. Take for example an individual buying life insurance.
Reasons could include:
- A lower premium due to their young age and good health
- The recent growth of their family
- A whole life policy that covers them for their entire life (compared to term)
Give the consumer all the information they need to make an informed and confident decision. Sometimes, this is all it takes to gently push them toward a bigger insurance policy.
2. Respect the process of selling insurance
There’s a lot that goes into selling insurance policies. This holds true regardless of the size. However, the bigger the policy the more money the person is spending. And for that reason, you can expect the process to take longer to reach completion.
The best way to prepare is to outline the steps that you want to take. This can include details such as:
- How to make first contact
- Sharing quotes for various types of policies
- Answering questions
- Following up
That’s a basic foundation, but it gives you an idea of the steps you’re likely to experience. The key to selling a bigger insurance policy is to consider this at every step.
For instance, provide the lead with quotes for policies of varying coverage levels and premiums. This allows them to see what they will get in return for their money.
3. Know their policy budget
The word “bigger” means something different to every prospect and agent.
As an agent, your job is to better understand a prospect’s budget so that you can provide the right quotes.
Maybe a prospect has a life insurance budget of $100/month. If you only provide quotes for policies that cost $50/month, you could be leaving money on the table. It also never hurts to show them what they can get if they expand their budget by a few dollars.
While some prospects may not want to share their budget upfront, most are willing to give you an exact number or ballpark range if you ask. This is one of the first pieces of information you want to collect.
4. Exercise patience
Generally, the more money someone spends, the longer it will take them to make a decision.
You’ll need to exercise patience from start to finish. Getting ahead of yourself increases the likelihood of scaring the prospect away.
Provide guidance, answer questions, and give your prospect time to think things through. Some people can make a final decision within a matter of minutes, while others take several weeks or longer.
As long as your prospect has the right information and is aware that you’re available to help, you’re in a good position.
5. Put yourself out there
Don’t be afraid to put yourself out there. This means two things:
- Telling the prospect that there are bigger insurance policies to choose from
- Sharing your thoughts on why they should consider thinking big
This won’t always work, but you can’t let your fear of rejection slow you down. With a respectful approach, you’re not taking much of a risk. The worst that can happen is the person telling you that they don’t want to consider a bigger policy.
The top challenges of selling bigger insurance policies
When you understand the top challenges of selling bigger insurance policies, you’ll feel more confident in your ability to do so. The following are three challenges that you need to overcome.
Client’s fear of overspending
A bigger policy means a higher premium, and that’s something that scares most prospects. The way you address this challenge will affect the size of the policy and ultimately how much you earn for selling it.
Choosing the right strategy
The bigger the policy the more important it is to have a defined strategy backed by previous results. Experiment with various strategies, track the results and tweak your future approach as necessary.
Finding the right prospects
Selling a bigger policy means finding prospects who are in a position to spend more. Life insurance prospects are among the best because there are so many policy types and coverage levels to choose from.
Don’t let anyone tell you that it’s simple to sell bigger insurance policies. You’ll face rejection, hundreds of voicemail messages, and leads that disappear. But when you stick with it, all your hard work will pay off.
Final thoughts on how to sell big insurance policies
Every insurance agent wants to sell bigger policies, but there’s a difference between “saying” and “doing.” The five tips above will help you formulate a strategy to regularly sell bigger policies.
The only other thing you need is a steady flow of leads. Fortunately, we have you covered.
No matter if you need one lead or thousands, we have you covered. Once you place an order, it’s time to follow these five tips.
Photo by Vlad Deep