Selling Insurance is About Emotions
You’ve brought leads in. You’ve held meetings with them and identified their needs. You’ve shown them their options. Now, to close the deal. But, how?
Insurance can be a tricky sale because it’s not a physical product. It’s not something your clients will likely experience the benefits of immediately. You’re taking some of their disposable income for something they can’t touch and feel, and that can be a difficult sale.
That’s why the best insurance agents and producers sell to their clients’ emotions. A well-known sales saying goes:
“People buy based on emotions and then justify their decision based on logic.”
As an agent, it’s your job to walk your client (as slowly as they need to) through the entire purchase decision before trying to close. After all, a satisfied client is more likely to buy from you again than one who experiences serious buyer’s remorse.
The good news is that once you master this, the clients tend to sell themselves. Insurance Pro Shop explains that you can help a prospect sell themselves if they can identify their own problem and you provide a solution.
Practice Makes Perfect
If you have the tendency to tell your prospect what he or she needs rather than helping them navigate to a conclusion themselves, you just need to practice in order to change that habit. Insurance Pro Shop makes the point that nobody likes to be told what to do. In fact, the prospect might get defensive and fight against your notions if you attempt this tactic.
Instead, think about what we said earlier: “People buy based on emotions and then justify their decision based on logic.”
Based on your prospect’s current situation, what questions can you ask them to help them identify their own problems so you can both find a solution?
The example Insurance Pro Shop uses is about the ability of your prospect’s family to pay the mortgage in the event of their death. Here are a few more examples that might arise with your life and health insurance prospects:
- Do they have private loans (even some student loans!) that would fall on a family member in the event of their death?
- Would their spouse be able to continue making a car payment without both incomes?
- Would their spouse be able to continue their current lifestyle in the event of their death (especially if they have kids)?
As an agent, it’s your job (and passion, hopefully) to help your clients understand the need and give them a sense of security in the products they purchase from you.
We wrote a blog that might help you with “starting points” for discussions with your clients. Check it out: Life Insurance Needs Assessment Resources for Insurance Agents. The blog talks about selling to Millennials who, in general, don’t see the need for life insurance and highly overestimate the cost. However, the blog is a good read for discussing the need with any age group.
Note that any advice given or generalizations made about Millennials or any other generation is relevant now, but those individuals' needs will change as they age.
Remember: Being a salesperson, especially as an insurance agent, is more about fostering relationships than it is about simply closing deals. Every great agent knows this and has learned this through much practice. Take what we’ve said here and continue to work on bettering your selling techniques based on emotional buying, and you, too, can create lasting client relationships from the first sale.
[eBook] Millennials & Insurance: How to sell to the most underinsured generation yet
Get an inside look into Millennials' buying behaviors, the reasons they're less likely to have insurance, and the strategies used to sell to them.