Selling life Insurance is easy if:
- You have a prospect who can understand their need. Perfectly, a need you understand too.
- You have a prospect who can see how the insurance satisfies the need.
- You have a prospect who can see that the insurance solution is the least costly in terms of current assets consumed.
- You have a prospect who can afford the coverage.
- You have a prospect who will do business with you.
- You have a prospect with whom you will do business.
- You have a prospect who can pass the medical requirements
- You have a presentation the prospect can compare to other options.
- You have a prospect who will make a decision.
Obviously having such a prospect is the problem.
Most insurance people spend at least 30% of their time finding people to talk to and qualifying the ones they do find. They spend another 30-50% of their time understanding the situation so that they can prepare meaningful ideas for the prospect. They spend a little more time keeping up to date on financial matters and the products that address it.
If they are lucky or very skilled, they will spend about 25% of their time in front of a client who may buy what they propose. Some do not. After that they will spend more time still on paperwork and followup. And then there is the ongoing customer service issue. Probably the whole thing will add up to about 150% of their time.
It is reasonable to do several things:
- Be fussy about who can be a client. Taking on more than a very few situations that may not close or may not meet medical or financial standards is wasteful.
- Become proficient and identifying problems and opportunities.
- Develop ways to explain those.
- Develop carefully crafted presentations that show how the product addresses the need discovered earlier. Winging it does not work often enough to do it.
- Become more efficient at finding good prospects. Referrals are nice.
- Hire people to do some of what you do now.
- Hold reasonable beliefs about how it works.
Many years ago I was on the staff at an industry training school. One of the other staff members was the late Don Brown. Each night there was a talk session where the attendees could ask questions of the staff. This is the conversation with Don.
“I am new in the business and my manager said I could make a very good living, working half days. Is that true?”
“Absolutely! And it does not matter which 12 hours you pick.”
Don Shaughnessy arranges life insurance for people who understand the value of a life insured estate. He can be reached at The Protectors Group, a large insurance, employee benefits, and investment agency in Peterborough, Ontario. In previous careers, he has been a partner in a large international public accounting firm, CEO of a software start-up, a partner in an energy management system importer, and briefly in the restaurant business.
Please be in touch if I can help you. firstname.lastname@example.org 866-285-7772