Mastering the Art of Selling Life Insurance Over the Phone

Author:Shelden SmollanChief Experience Officer
Shawn Redford
Reviewed by:Shawn RedfordChief Business Development Officer
April 20, 2023
9 Minute Read

Discover how to master the art of selling life insurance over the phone. Learn how to use effective scripts, questions, and objections to boost your sales. 

Insurance agent selling life insurance over the phone

The Challenges and Opportunities for Life Insurance Agents

As the insurance industry continues to evolve, selling insurance over the phone has become an increasingly popular and effective method for reaching potential clients, though some insurance agents use Zoom or meet face to face. With the advancement of technology and changing consumer preferences, phone-based sales have become a valuable tool for insurance agents to connect with customers in a convenient and efficient way during the sales process. In this article, we will explore a strategy used to develop a discussion using tips, tricks, and possible scripts to help you, the insurance agent, master the art of selling insurance on the phone with some authority and confidence.

5 Tips on How to Sell Life Insurance Over the Phone

If you are a life insurance agent, you might find it challenging to sell life insurance over the phone. But don’t worry; you can do it with the right tips and tricks. Here are some of them:

Tip 1: Prepare Yourself for Selling Insurance on the Phone

Are you ready

Insurance salespeople need to be ready to sell insurance over the phone before they make any sales calls. Before making phone calls, find out about the people you want to reach and what they want and need. Learn about the life insurance plans you are selling, including what they cover, how much they cost, and what features they have.

Make a list of possible questions or complaints that potential customers might have, and be ready to answer them in a sincere manner. During the cold call, it can also help to have a well-organized plan and important materials close by.

Be confident and knowledgeable when you talk to customers. You should be able to tell them how each policy can help them achieve their financial goals. You should also be able to answer any questions they may have about the life insurance policies you are selling.

Doing this can help you sell over the phone more effectively and make a good impact. Some people forget how important it is to be ready. You know a lot more than the average person, and you have the tools to help people make important decisions about their money. Your understanding is very important, and the more people you talk to about money, banking, and insurance, the greater the likelihood of success. If you are ready, one call can lead to more than one success.

Tip 2: Be Engaging and Build Rapport

The word engage spelt with separate letters cut out of different magazine pages pinned to corkboard

When selling insurance over the phone, building rapport is crucial, especially if it is the first call or a cold call. “Smile Before You Dial!” Your prospect can detect a happy caller. Start the conversation with a warm and friendly tone, and introduce yourself and your company. Show a genuine interest in the potential customer’s needs and concerns. 

Ask open-ended questions to encourage them to share more about their situation and goals. Active listening is key here, as it allows you to understand their needs and tailor your pitch accordingly. Building a connection with the customer can establish trust and increase the chances of a successful sale.

Some examples of questions to ask might include:

  1. “People often forget to review their insurance policies over time. There have been many changes, and I want to make sure you are getting the best benefits at a lower cost. How often do you review your policy?”
  2. “Tell me about your current financial situation and any financial goals you have for the future?”
  3. “What are your main concerns when it comes to protecting your family’s financial well-being?”
  4. “Have you ever experienced a situation where you or your family faced financial challenges due to an unexpected event, such as an illness or loss of income?”
  5. “What kind of coverage are you looking for with your life insurance policy?”
  6. “What factors are important to you when considering insurance, such as affordability, coverage amount, or flexibility?”
  7. “Do you currently have any insurance coverage? If so, tell me more about it and what you like or dislike about it?”
  8. “How familiar are you with different types of life policies, such as term life, whole life, or universal life?”
  9. Can you tell me which two or three benefits were most appealing to you about the insurance you currently have in place?
  10. Tell me about your family’s long-term financial goals and how insurance can play a role in achieving them?”
  11. “What are your thoughts on leaving a financial legacy for your loved ones, and how do you envision life insurance fitting into that plan?”

Remember, open-ended questions encourage the potential customer to share more about their needs, concerns, and preferences, providing you with valuable information to tailor your pitch and address their specific requirements.

Tip 3: Highlight Benefits and Handle Objections

Three hands holding up signs that have a red X on them

During the sales call, focus on the benefits of the life insurance policy you are offering. Highlight how it can provide financial protection for the customer’s loved ones in case of unforeseen events, such as illness or death. Emphasize the peace of mind and security that life insurance can offer. Be prepared to address any objections or concerns the potential customer may have. Common objections may include affordability, skepticism about the need for life insurance, or comparison with other insurance options. Use your knowledge and expertise to provide convincing responses and overcome the most common objections. Objections are common when selling insurance, and making insurance sales can be challenging, so having these things prepared in advance will assist you in getting the most sales possible.

Examples of an Objection:

1. Objection: “I can’t afford life insurance right now.”

Response: “I appreciate that budget is a consideration for you. What would happen, though, if you weren’t able to earn income as a result of an illness, injury or worse? People don’t expect bad things to happen, but it’s important to be prepared in case they do. We offer a range of policy options that can be tailored to fit different budgets. Let’s discuss your financial goals and find a solution that works within your budget.”

2. Objection: “I don’t think I need insurance.”

Response: “It’s important to consider how life insurance can provide a safety net for your loved ones in case of unexpected events, such as illness or death. It can help cover funeral expenses, pay off debts, and provide income replacement for your family. Let’s talk more about your specific situation and how life insurance can benefit you and your family.”

3. Objection: “I already have insurance through my employer.”

Response: “While employer-provided life insurance can be a valuable benefit, it’s important to note that it may not provide sufficient coverage and may not be portable if you change jobs. Having a personal life insurance policy can give you more control and flexibility over your coverage. Let’s discuss your coverage in more detail and see if additional protection may be beneficial for you.”

4. Objection: “I need to think about it.”

Response: “Of course, taking your time to make a decision is understandable. However, life insurance rates are based on various factors, including age and health, and may increase over time. It’s important to secure coverage sooner rather than later to lock in a favorable rate. Can I answer any questions or provide more information to help you make an informed decision?”

5. Objection: “I prefer to invest my money elsewhere.”

Response: “Investing is important, but life insurance serves a different purpose. It provides protection for your loved ones in case of unforeseen events and ensures their financial well-being. It can complement your investment strategy by providing a solid foundation of financial protection. Let’s discuss how life insurance can be a part of your overall financial plan.”

6. Objection: “I’m not sure if I trust insurance companies.”

Response: “I understand your concerns. As a reputable insurance agency, we prioritize transparency and customer satisfaction. We are committed to providing you with comprehensive coverage and excellent service. We can also provide references and testimonials from satisfied customers. Let’s address any specific concerns you have and ensure that you feel comfortable and confident in your decision.”

When addressing an objection, it’s important to listen actively, empathize with the potential customer’s concerns, and provide relevant information that addresses their specific objection. Being knowledgeable, transparent, and customer-centric in your responses can help build trust and overcome any objection during the sales call. 

Be patient when you deal with customers. Customers may need some time to think about their decision, so don’t rush them or pressure them.

Tip 4: Be Transparent and Clear

Woman holding up transparent screen between herself and the camera

Transparency is crucial when selling over the phone. Clearly explain the terms and conditions of the policy, including coverage, premiums, and any potential limitations or exclusions. Avoid using jargon or technical language that may confuse the customer. Be honest about the limitations and risks associated with the policy, if any. Clear communication builds trust and credibility, which are essential for successful sales. Let them understand that you will answer any request they may have and provide the solution or answers. Convey that you have a professional responsibility to the client, and this will put you at an advantage.

Tip 5: Close the Sale

Close up photo of a handshake

Once you have addressed the potential customer’s concerns and provided them with relevant information, it’s time to close the sale. Ask for their commitment and be confident in your pitch. Use persuasive language, remind them that any change in their health or even their family will affect their ability to qualify for coverage, and highlight any limited-time offers or promotions to create a sense of urgency. Be prepared to handle any final objections or questions that may arise before closing the sale.

If the potential customer is not ready to commit, ask for a follow-up appointment or offer to send them additional information to keep the conversation going. If they do commit, then don’t be shy or hesitant about asking for an introduction to someone they care about that could also benefit from your services. This may help you get more deals.

Example of a Closing Pitch:

“After discussing your financial goals and concerns, and considering your unique situation, I believe that our [insert policy type] life policy can provide you with the coverage you need to protect your loved ones’ financial future. With its [insert policy features/benefits], it offers comprehensive protection and peace of mind. Based on our conversation, it seems like a great fit for your needs.

So, are you ready to take the next step to secure this valuable coverage for yourself and your family? I can guide you through the simple application process and answer any final questions you may have. Your family’s financial protection is important, and I’m here to help you make the right decision. What do you think?”

This closing pitch reiterates the benefits of the policy and how it addresses the potential customer’s needs and concerns. It also uses a confident and assumptive tone, assuming that the customer is ready to proceed with the purchase. By asking for the sale directly and offering to assist with the application process, you are providing a clear call-to-action and making it easy for the customer to take the next step in the buying process.

It’s important to remember to be respectful and not pushy when delivering your closing pitch. If the potential customer expresses further hesitation or has additional questions, be prepared to speak to them patiently and provide any additional information needed to help them make an informed decision.

Possible Script for an Insurance Agent Selling Insurance:

Here’s an example of a script that you can use as a reference when selling your insurance via the phone:

“Hello, [Customer’s Name], my name is [Your Name] from [Your Company]. How are you today? I understand that you may have concerns about your financial future and the well-being of your loved ones. That’s why I’m calling to talk to you about life insurance, which can provide you with peace of mind and protection in case of unexpected events.

Can I ask you a few questions to better understand your needs? – Wait for the answer. – Great!

Want to Do More Than Just Sell Insurance?

Couple meeting with a life insurance agent

At Experior Financial Group, Inc., we help train our insurance agents in all aspects of insurance sales to help them find good insurance leads and ensure they have good product knowledge. With Experior training, we can help you establish credibility with your prospective clients and not only make cold calls when calling prospects, but we also train you to review and assess a prospective client’s financial situation so that you can assist them with more than just selling insurance.  

When you listen and hear the person speak to you about their unique situation, we find that you can have more success in dealing with them if you help by doing a Financial Needs Analysis and then educate them on how they can reach their financial needs and goals both in the short and long term. You can help your potential client to get the ball rolling with more than just small talk.

How to be Successful Selling Life Insurance

At Experior Financial, our successful agents do more than sell life insurance; they evaluate and offer real financial solutions to empower families today and leave a legacy for tomorrow. We offer more than just your average insurance salesperson. We do insurance sales with the best interest and fair treatment of the customer always at the forefront of our minds.

Experior Financial Logo

Selling life insurance from home over the phone can be a challenging yet rewarding experience. It is important to understand the life insurance sales process, consider the customer’s needs, and prepare for the call. 

By following the life insurance sales tips outlined in this article, life insurance agents can increase their chances of success and become a successful life insurance agent. 

Additionally, it is important to avoid common mistakes such as not understanding the customer’s needs or not having the right information. With the right knowledge and preparation, insurance agents can become successful in selling policies. So, take the time to understand the life insurance sales process, consider the customer’s needs, and prepare for the call. With the right knowledge and preparation, you can become a successful life insurance agent.

Common Mistakes to Avoid When Selling Life Insurance 

When selling life insurance policy over the phone, there are a few common mistakes that insurance agents should avoid.

  • First, it is important to understand the sales strategy and the different types of insurance coverage available. Agents should be knowledgeable about the different types of insurance policies, such as term life insurance, as well as permanent life insurance policies.

    This knowledge will help agents to better explain the benefits of each policy to potential customers.
  • Another mistake to avoid is not taking the time to understand the customer’s needs. Life insurance agents should take the time to ask questions and listen to the customer’s needs and concerns. This will help agents to tailor the dialogue better and provide the customer with the best life insurance policy for their needs.
  • Finally, agents should be aware of the different life insurance companies and their policies. Knowing the different policies and companies will help agents to provide customers with the best options for their needs.

By avoiding these common mistakes, life insurance agents can become successful in their life insurance business. 

Different Follow-up Options for Insurance Agents

Following up with your contacts after the first call is crucial. It shows professionalism, builds trust, and strengthens relationships. It ensures that important details are not missed and allows for further discussion or clarification. 

By following up, you demonstrate your commitment and interest in maintaining a strong connection, which can lead to future opportunities and collaborations. 

One tip for following up is to have a clear purpose in mind. Whether it’s to schedule a follow-up call, provide additional information, or ask for referrals, knowing your objective will help guide the conversation and make it more effective. 

  • Prompt Response: Make sure to reach out to prospects soon after the first contact. This shows your proactiveness and eagerness to provide them with solutions.
  • Consistent Communication: Keep your brand visible by maintaining regular communication. This could be through personalized emails, informative newsletters, or well-timed phone calls.`
  • Sales Follow-up: Highlight your unique selling proposition to differentiate yourself from competitors and improve your chances of securing the deal.
  • Timed Follow-ups: Use suggested timelines for insurance sales follow-ups to guide you on when to make your next move and how to best maintain the momentum of the sales process.
  • Follow-up Calls for Life Insurance: Secure vital details and build a relationship with potential life insurance clients through phone calls.
  • Effective Campaigns: Run well-planned marketing campaigns to boost your brand awareness and increase sales.
  • Manage Sales Follow-up Campaigns: Effectively manage your insurance sales follow-up campaigns to increase positive feedback and improve customer satisfaction. 

FAQ Questions and Answers About Selling Life Insurance Policies: 

What is the sales process for selling insurance?  

The sales process for selling insurance typically involves building rapport, understanding the customer’s needs, researching the best policy options, comparing their current strategy to the one you recommend, and closing the sale. It is important to be knowledgeable about the different types of insurance policies and to be able to explain the benefits of each policy to the customer.  

What should I consider when selling an insurance policy? 

When selling a life insurance policy, it is important to consider the customer’s needs and budget, the type of policy that best suits their needs, the customer’s age and health, and the customer’s financial goals. It is also important to be aware of any state or federal regulations that may apply to the sale of life insurance. 

How can I prepare for a cold call?

To prepare for a life insurance products sales call, it is important to research the customer’s needs and budget, review the different types of life insurance products available, and practice presenting the policy to the customer. It is also important to be familiar with any state or federal regulations that may apply to the sale of life insurance.

What are some tips for selling life insurance over the phone? 

When selling life insurance over the phone, it is important to be knowledgeable about the different types of insurance policies and to be able to explain the benefits of each policy to the customer. It is also important to be patient and understanding, to listen to the customer’s needs and concerns, and to be prepared to answer any questions they may have.

What are some common mistakes to avoid when selling life insurance? 

Common mistakes to avoid when selling insurance policy include not being knowledgeable about the different types of life insurance policies, not listening to the customer’s needs and concerns, not being prepared to answer any questions the customer may have, and not being aware of any state or federal regulations that may apply to the sale of life insurance.

What are the different types of life insurance policies? 

The different types of life insurance products include term life insurance, whole life insurance, and universal life insurance. Each type of policy has its own set of benefits and features, so it is important to understand the differences between them in order to effectively present them to the customer. Additionally, there may be variations within each type of policy, so it is important to research and familiarize oneself with all available options.

Are there any state or federal regulations that apply to selling life insurance?

Yes, there are several state and federal regulations that must be followed when selling life insurance in the USA. You should check with the regulators in the state you are wanting to do business in.

Shelden Smollan
Shelden Smollan, Experior Financial Group's Chief Experience Officer, has spent more than 45 years working in the fields of Life Insurance and finance. He is an excellent insurance sales and management executive with exceptional strategic thinking, marketing, and leadership abilities. He has been Experior Financial Group Inc.'s Chief Experience Officer for the past six years, and his vision and expertise have been instrumental in the company's growth and development. By arranging meetings between agents and carriers so that our team of associates can learn from them and draw inspiration from them, he has assisted our IMO in expanding.