Table of Contents
Key Takeaways
- Many people think their life insurance coverage is sufficient when, in reality, it isn't. In fact, 50% of Americans are actually underinsured.
- The biggest roadblock for someone purchasing life insurance usually boils down to a lack of knowledge.
- Four of the most common misconceptions among Americans about life insurance include: affordability, age relevance, health assumptions, and employer coverage sufficiency.
- Cross-selling life insurance is a smart way for health insurance agents to grow their business and retain clients.
As a health insurance agent, expanding your offerings to provide life insurance for families, individuals, and employees is both a rewarding and strategic way to grow your business. While about 51% of Americans own at least one life insurance policy, 10% of policyholders still feel they need additional coverage, presenting a clear opportunity for you to help clients secure additional protection.
In this blog, you’ll learn how to get started with life insurance, best practices, and how to cross-sell life insurance effectively.
What is Life Insurance?
Life insurance is a contract with an insurance company that provides financial protection for a client’s loved ones. The client pays regular premiums, usually on a monthly basis. In return, the carrier guarantees a set amount, called the death benefit. This money goes to their family or anyone who depends on them financially if the client passes away.
The main purpose of life insurance is to provide financial protection for the policyholder's loved ones in the event of their death.
Types of Life Insurance Policies
Now that we’ve established why life insurance is important, let’s explore different types of life insurance you can offer to close your clients’ coverage gap.
| Type |
Key Features |
Pros |
Cons |
| Term Life |
Covers you for a specific time (like 10-30 years), pays out only if you die during that time |
Cheapest option, easy to understand |
Ends after the term, you don't get any money back |
| Whole Life |
Covers you for your entire life, you always pay the same amount, and build up savings you can use |
Savings grow over time and never expire, payments stay the same and are cheaper if the client starts them at a younger, healthier age |
One of the more expensive options |
| Universal Life |
Covers you for life, you can change your payments and coverage amount as needed, earns interest like a savings account |
Flexible, can adjust as your life changes, builds savings |
How much you earn depends on interest rates |
| Variable Life |
Covers you for life, your savings are invested in the stock market and the value goes up and down with the market |
Could earn a lot if investments do well |
Could lose money if market drops, expensive and risky |
How Life Insurance Supports Your Clients
Life insurance can ease financial stress for your loved ones. Beyond serving as a safety net, life insurance can also help families cover immediate expenses and help them plan for the future. While there are different types of policies and requirements, the main reasons people buy life insurance include:
Certain life events can also prompt people to consider purchasing life insurance. Typical life events that prompt life insurance purchases are:
- Getting married
- Starting a family
- Experiencing a death in the family
- A career change that affects income or coverage options
Ready to turn life insurance gaps into growth opportunities?
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Helping Prospects Overcome Misconceptions & Concerns About Life Insurance
Even with all of the benefits we listed above, many people still hesitate to buy coverage due to misconceptions about life insurance. Understanding the reasons behind these concerns and knowing how to address them is essential to helping clients see the true value of being properly insured.
Below are the most frequent concerns you'll hear from your clients about buying life insurance and what you can say to them:
| Common Misconception |
How to Address the Concern |
| "It's too expensive." |
More than half of Americans think life insurance costs 3X more than it actually does. To overcome this objection, emphasize affordability, especially for younger buyers, and show real examples of how small monthly payments can provide long-term protection. |
| "I have other financial priorities." |
Between saving, debt payments, and living expenses, many people put life insurance last. To address this concern, remind them that it is an investment in security rather than an expense. You can also highlight how costs rise with age or health changes, and that 40% of people wish they had purchased coverage sooner. |
| "I'm not sure what or how much I need." |
Many don't know what kind or how much to buy; in fact, 58% of Millennials, 39% of Gen Xers, and 29% of Boomers admit this. Use this knowledge to explain that a good rule of thumb is 7-10X their annual income and review typical expenses life insurance can cover, such as funeral costs, debt, and mortgages. |
| "I'm uncomfortable discussing death." |
People often avoid thinking about death. When discussing life insurance, shift the focus to peace of mind. Remind them that life insurance is about protecting loved ones and providing financial security in case something happens. |
| "I have enough coverage with my employer." |
Employer-provided insurance can create a false sense of security. Encourage clients to think beyond their workplace policy and review their personal coverage needs to make sure their families are fully protected. |
Want to convert more life insurance leads into loyal clients?
We created this comprehensive sales checklist to help you assess client needs, overcome objections, and ensure nothing gets missed in the sales process!
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6 Steps to Effectively Cross-Sell Life Insurance to Your Clients
If you don’t already have a life insurance license, it’s important to get one so you can legally sell life insurance in your state. You can begin the process through the NIPR licensing portal.
Adding life insurance to what you already offer, whether you focus on Medicare, individual health, or group benefits, is a natural extension of the protection you already provide. It allows you to meet more of your clients’ needs and strengthen long-term relationships.
Once you’re licensed, cross-selling life insurance alongside health insurance can be a strategic way to increase your revenue and offer clients more comprehensive coverage and long-term value.
Step 1: Identify Which Clients Need Coverage
Start by running a cross-sell report in your agency management system (AMS) to identify coverage gaps. AMS+, an AgencyBloc solution, lets you easily pinpoint which clients have health insurance but not life insurance coverage with you.
Highlight these coverage opportunities during client renewal meetings to help clients maximize their coverage.
Step 2: Educate & Calculate the Coverage Amount
Take the time to explain to your clients how life insurance works, the benefits it offers, and how it can fit into their long-term financial plan. Use easy-to-understand language to explain terms and coverage options. Then, be sure to personalize your conversation to each client's needs.
Need help explaining life insurance terms to your clients?
We created this comprehensive Life Insurance Terminology 101 guide that breaks down all the essential terms your prospects and clients need to know!
The right amount of life insurance for your clients depends on their financial situation and what they want to cover. To get started, review what financial responsibilities they currently have:
Step 3: Conduct a Client Needs Assessment
Use a client needs assessment (CNA), a one-page questionnaire, to guide your appointments. The CNA helps you identify your client's goals and where their current coverage falls short. Helping clients identify their coverage gaps themselves makes them more confident and motivated to take action.
You can leverage online needs assessment calculators like Life Happens, Bankrate, StateFarm, and Voya.
Step 4: Make a Personalized Recommendation
Once you’ve determined your client’s coverage needs, you can turn that information into a clear, tailored solution. Start by recommending a coverage type and amount that matches their top priorities. Then explain why the type of policy you’re suggesting fits their situation.
For example, term life insurance is often best for temporary needs, while permanent life insurance provides lifelong protection. Even if you know which life insurance option is ideal for your client, it’s important to offer multiple choices so your client can decide what works best for their budget.
A helpful tip for making options easier to understand is to explain the cost in everyday terms. For example, you could explain that a life insurance plan costs about as much as a morning coffee every day and helps replace your income.
Your goal is to act as a trusted advisor, working with your client to create a solution together that fully meets their life insurance needs and concerns.
Step 5: Present Your Offer & Reinforce Your Recommendation
Show prospects and clients the benefits of having both health and life insurance with your agency. Highlight how bundling can lead to added value, such as greater coverage and simplified management of their insurance needs. Additionally, if they have questions about their coverage, they only have to call one place, instead of multiple.
You can strengthen your recommendation by sharing success stories from your other clients who’ve benefited from similar plans. Use case studies and testimonials to showcase these stories.
6. Always Follow Up
Consistent follow-ups are essential for building trust and staying connected with both prospects and clients. Whether someone purchases a policy right away or needs more time to decide, staying connected matters.
By staying in touch, you position yourself as the trusted professional they'll turn to when they're ready to expand their coverage. Consider using automation tools to support your follow-up strategy.
Ready to start cross-selling life insurance to your clients and prospects?
We put together these life insurance email templates and workflow recipes you can use immediately to keep in touch and sell more!
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Ready to Cross-Sell Life Insurance With AMS+?
With AMS+, your team can use sales-specific workflow automation to deliver consistent, meaningful follow-ups to clients and prospects when introducing life insurance alongside their existing health coverage. By sending timely, relevant communication, you can build trust and increase the likelihood that they will expand their coverage with your agency.
Once life insurance opportunities are identified, AMS+ helps you track and manage every stage of the cross-sell process, helping you improve conversion rates while maintaining compliance.
Cross-selling life insurance is about offering stronger financial protection and peace of mind for your clients. With AMS+, you can easily spot new opportunities, automate follow-ups, track policies, and deliver more complete coverage.
Posted
by Shannon Beck
on Tuesday, November 4, 2025
in
Life Insurance
- insurance automation
- selling
About The Author
Shannon is the Marketing Specialist at AgencyBloc. She creates and curates engaging, helpful content across blogs, social media, and other digital platforms for health, benefits, and senior insurance agencies looking to grow. Favorite quote: "If you can dream it, you can do it." &m
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