Editor’s note: This post was originally published on 4/11/17 and has been updated for accuracy and comprehension.
What life insurance sales mistakes should you avoid?
You should avoid making these life insurance sales mistakes:
- Relying on stats
- Not helping customers see the need
- Not listening
- Using jargon
- Talking too much
Life insurance sales mistakes can cost you – dearly.
But a life insurance policy can be a huge benefit to your prospects and customers, so knowing how to sell this valuable product is essential.
If you want to place more cases and see your life insurance sales improve significantly, learn how to avoid making these five common life insurance sales mistakes.
Don’t make these life insurance sales mistakes
1. Relying on stats
This is a mistake because consumers don’t care enough about statistics for them to be a reason to buy.
Instead, use stories to demonstrate how a family might suffer without life insurance. This will have a greater impact than stats because it shows a real outcome.
2. Not helping customers see the need
You may think you have a good understanding of what your customers need.
But do yourself – and them – a favor and still ask the questions.
The most successful life insurance producers ask the kinds of questions that get customers talking and thinking about their lives.
For example, one way to get prospects thinking in the right direction is to ask them what they imagine their financial situation would look like if the family’s breadwinner were to die.
3. Not listening
When you don’t listen well, you run the risk of making incorrect assumptions.
That doesn’t do anything to help your life insurance sales – or your customer.
You’ll learn a lot about the prospect and their needs simply by paying attention and listening.
Use the information you glean to steer your conversation toward solutions that will meet those needs.
For example, you may point out how life insurance can help pay off a mortgage or put the kids through college.
4. Using jargon
When you speak to a prospect using your life insurance insider-jargon, they’ll likely be confused and you’ll lose the sale.
They’re too busy deciphering what you’re saying to even think about if it’s going to be a solution for them.
Communicate using their language. Prospects typically don’t understand words like “underwriting,” nor can they distinguish between different types of life insurance.
The bottom line is that if they don’t understand, they’re not going to buy. As much as possible, use everyday language to explain why your potential customer needs what you’re offering.
5. Talking too much
When you’re talking, your prospect isn’t.
It goes back to listening, right? If you spend too much time talking, you won’t be able to get a full picture of what they need and why they may be hesitant to pull the trigger.
A good rule of thumb is to let your prospect do 80% of the talking. If you follow this rule, you won’t miss out on the valuable information they’re giving you.
You’re on your way to life insurance sales success
Take these five life insurance sales mistakes to heart and be intentional about doing the opposite.
You’ll see your sales improve and you’ll have happy customers who are secure in the solutions you’ve provided them.