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How to Educate Your Life Insurance Prospects

Overcoming the biggest objection to buying life insurance:

People don’t want to talk about death and it’s not an easy subject. If you’re ready to play both the educator and seller roles, you’ll easily overcome these objections – and sell more life insurance policies.

Editor’s note: This post was originally published on 3/2/17 and has been updated for accuracy and comprehension.

It’s not enough to simply sell life insurance to your prospects.

Today, you need to educate consumers about the need for the product.

That means you have to play two roles: educator and seller.

But it’s not easy to talk about death.

In fact, most people are afraid to talk about the idea that it will eventually happen, while others believe the “date” is so far away that they don’t have to worry about it yet.

Educating your life insurance prospects is the best way to counter these objections  – without scaring people into buying life insurance.

How to educate life insurance prospects

Here are some topics you should broach with prospects when talking about life insurance.

1. Talk about when "that day" comes

Your prospects should think about having enough life insurance NOW.

If they were to pass tomorrow, what kind of financial condition would their loved ones be in?

Would they be well taken care of?

If not, the prospect should purchase life insurance now  – because no one knows if they’ll get another tomorrow or not.

2. Show that procrastination gets you nowhere

The waiting game is easy to fall into.

We all procrastinate, but in the case of life insurance, putting off the purchase can lull many consumers into thinking they have all the time in the world.

In one moment, life can change  – and that change can be devastating for loved ones who remain (and who don’t have a life insurance policy to fall back on).

3. Leave the gambling at the casino

Without a life insurance policy, your prospects are gambling with their future.

Perhaps they’re banking on living another 50 years, prioritizing things like investments and a home.

But if it all crumbles tomorrow, it’s a life insurance policy that will help the loved ones who remain get through the difficult financial repercussions – and ensure that the home stays in the family.

A 3-step strategy for identifying leads

You need to do more than just address objections and fears.

You’ll also need to create a system for identifying leads.

Here are some ideas.

1. Choose a niche

You can hone the education piece of your sales process by choosing a niche and then coming up with a more focused and effective message.

For example, niche markets that feature people who inherently have more risk in their jobs (like doctors, lawyers, contractors, and firefighters, etc.) can make it easier to educate and then sell life insurance.

2. Plan for referrals

Getting referrals from existing customers is one of the best ways to boost your business.

While you may be reticent to bother customers for referrals, it’s one of the more effective ways to get leads.

When you do ask for a referral, avoid broad questions, like “Do you know someone who needs insurance?”

It’s too easy to answer “no” to this question.

Instead, ask more pointed questions, like “Do you know someone who could benefit from my services, as you have” or “Could you favorably introduce me to one of your colleagues”?

3. Cross sell

If you sell other types of insurance, you have the opportunity to talk to prospects and customers about additional insurance products they might need, like term life insurance.

A face-to-face meeting that doesn’t also cover additional needs or life changes (like getting married or having a child) is a wasted cross-selling opportunity.

Education is the key

By educating prospects about life insurance, you can boost your sales and increase revenue.

So back off the “hard” sell, and guide your prospects to see the value of the product.

Once they understand what it’s actually worth to them, they’re more likely to invest in your services.

In what areas do you struggle to educate prospects?

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