Insurance sales are an essential aspect of the insurance industry; it aims to protect against financial loss and any unexpected event that incurs losses. Insurance sales involve agents who sell insurance policies, such as life and car, to customers.
This article provides information on insurance sales, including the term’s meaning, the role of insurance sales agents, and their salary range.
What are Insurance Sales?
To customers, insurance sales involve selling various insurance policies, such as home, life, health, and car insurance. Insurance salespeople are responsible for building a customer base, explaining policies, selling, and negotiating insurance policies.
Insurance helps protect you, your family, and your assets. An insurer will help you cover the costs of unexpected and routine medical bills or hospitalization, accident damage to your car, injuries to others, and home damage or theft of your belongings.
What Are Insurance Sales People Called?
The term used to describe insurance salespeople varies depending on the context and the type of insurance product they sell. Here are some of the most common terms used to describe insurance salespeople:
- Insurance sales agent
- Insurance agent
- Insurance broker
Insurance Sales Agent
An insurance sales agent is a licensed professional selling different insurance products. They work for insurance companies or brokerage firms and help clients understand their insurance needs and recommend the most suitable insurance policies to meet those needs. The policies they sell may include life, health, property, casualty, car, long-term care, and disability insurance.
They educate clients about the different insurance policies available and help them understand which would best meet their needs.
What Are the Duties of an Insurance Sales Agent?
The duties and responsibilities of an insurance sales agent may vary depending on the type of insurance they specialize in and the company they work for. However, the common duties and responsibilities of an insurance sales agent include the following:
- Educate clients about the available insurance policies and help them choose policies that best meet their needs.
- Build and maintain strong relationships with their clients and meet sales goals set by their employer.
- Stay current on industry trends and changes in insurance regulations.
- Sell insurance policies to individuals or businesses, and help them complete the application process.
- Offer financial management services and manage clients’ accounts.
- Agents also provide assistance and counseling for current clients and may help file claims.
Salary for an Insurance Sales Agent
The salary for an insurance sales agent varies widely depending on many important factors, including education, certifications, additional skills, and the number of years spent in the profession. Overall, the average salary for an insurance sales agent in the United States is $54,180, but the range typically falls between $49,483 and $61,118
Salary for an insurance sales agent by city
- In Tampa, FL, the salary for an insurance sales agent is $71,580 per year.
- In Austin, TX, the salary for an insurance sales agent is $66,727 per year.
- In Charlotte, NC, the salary for an insurance sales agent is $65,974 per year.
Life Insurance Sales
Life insurance sales involve the process of selling life insurance policies to customers. You can obtain life insurance online or through an insurance sales agent.
Life insurance is a legal contract between you and your insurer. In exchange for monthly or annual premiums, your insurance company provides a payment, also known as a “death benefit,” to your chosen beneficiaries upon your passing.
The life insurance sales sector is one of the largest and most important components of the trillion-dollar insurance industry in the United States. Life insurance and annuities accounted for almost half of the American insurance industry’s net premiums.
As a career, being a life insurance sales agent offers potential for financial growth, job opportunities, and self-employment. Life insurance sales agents receive a commission of 60% to 80% of the premiums the customer pays in the first year. In subsequent years, they collect smaller commissions, and 5% to 10% of all premiums paid over the policy’s life could go to commissions.
Car insurance Sales
Car insurance sales refer to selling car insurance policies to car owners. It provides financial protection for car owners in the event of accidents, theft, or other types of damage to their cars.
Car insurance policies have multiple coverage options, including liability, collision, comprehensive, and uninsured motorist coverage. The cost of car insurance depends on various factors, such as the car’s make and model, the driver’s age, driving record, and location. An insurance sales agent makes a 2 to 15% commission for car insurance renewals.
What Is the Difference Between an Insurance Agent and a Sales Representative?
The difference between an insurance agent and a sales representative is that an agent represents an insurance company and sells their policies for a commission. In contrast, a sales representative works for a single company and represents only their products.
Insurance Agent
- An agent can represent one or more insurance companies.
- The agent earns a direct commission based on how much they can negotiate for their client.
- An agent may have multiple business clients and usually works for their own business.
- An agent works on behalf of a client to secure employment for a business client.
Sales Representative
- A sales representative usually works in a sales position, acting directly on behalf of an employer.
- The representative usually receives a commission based on the value of the total products or services sold but may also receive a salary.
- A sales representative usually works with an established company to sell the goods and services of that company.
- A representative may work in almost all retail areas and at all pay levels, from a store clerk to a car salesman.
How to Make Insurance Sales
Making insurance sales, whether life or car, involves establishing credibility and trust with prospects, understanding their needs, and offering solutions that meet them. To do this, it is important to be an educator and advisor, not just an agent. Explain insurance options and coverage in simple terms and take an interest in the prospect’s particular needs. By doing this, you establish yourself as an expert in the insurance you sell and build trust with your prospects.
How Do I Sell Insurance to a Client?
Selling insurance can be done in many ways, depending on the type of insurance product you are selling and your target audience. Here are five ways to sell insurance to clients:
#1. Use Various Marketing Strategies
One way to do this is by saturating the market with the same billboard. You can also use direct mail programs to reach potential customers and contact your current client base. Cold calling is another option, but it is important to invest in leads before trying out this sales method. Referral cards and requests for referrals on all possible communication channels can also help expand your network.
#2. Plug Into Sales and Marketing Systems That Are Proven to Work.
Insurance agencies have tested and vetted sales and marketing systems that can help agents find prospects and help them with their insurance needs. For example, in the final expense business, a proven selling and lead generation system puts interested prospects in front of agents daily.
#3. Build Rapport With the Prospect During Each Sales Call.
Spend time getting to know the prospect and asking underwriting-related questions. For example, if you are into life insurance sales, ask about the prospect’s health and present what you offer them. If they have objections to buying, rebut them for a mutually beneficial outcome.
#4. Sell Different Types of Insurance Products.
For example, you can sell term insurance to different markets, such as business owners. Selling to groups provides scale and leverage that are difficult to match in a 1-on-1 market.
#5. Maximize Sales Results by Cross-selling
Cross-selling involves selling multiple products to the same insurance sales prospects. Although new agents commonly sell multiple products, learning even one product, let alone multiple products, is overwhelming. As a new agent, it is best to focus on one product and add more as you develop expertise.
How Do I Interview an Insurance Agent?
To interview an insurance agent, there are several questions you can ask to determine their fit for the role.
#1. Ask Why They Are Interested in the Role
This question allows the interviewee to sell themselves and showcase what they can bring to the company.
#2. Ask the Interviewee About Their Experience
The interviewee should provide a brief overview of their previous roles and responsibilities.
#3. Ask About the Qualities That Make a Good Insurance Agent.
Communication and negotiation skills are essential, as are good marketing skills. Additionally, an insurance agent should have vast product knowledge, a great personality, and persistence.
#4. Ask Them How They Stay Motivated.
You can also ask them to describe their strategies and mindset for the role. These questions will help you understand how the interviewee approaches their work and how they handle pressure.
#5. Ask Them an Unexpected Question.
Asking an unexpected question will show how they react to a challenge they may not have anticipated. This can give you insight into how they think and how quickly they can react when an unplanned situation presents itself.
#6. Ask Them What They Expect From the Job and What They Expect From You as the Hiring Manager.
This question will help you see how the candidate views their role in the company and how they view your role as the hiring manager.
#7. Ask the Candidate About Their Favorite Job and What They Liked About It.
This question can help you see what they like about certain jobs and what they don’t like. This can be useful in understanding how they will fit into your company and how they will work with others.
How Do I Promote Myself as an Insurance Agent?
As an insurance agent, promoting yourself is crucial to attracting clients and growing your business. There are several steps you can take to promote yourself, including:
- Find your niche and use niche marketing to boost your sales. Instead of trying to please everyone, focus on a specific market segment and tailor your marketing efforts to their needs.
- Brand yourself effectively by developing a clear, cohesive design that identifies your brand. This includes your website design, marketing materials, and even the header on the invoices you send your clients.
- Create original content to market yourself for free. For example, you could create blog posts, social media posts, or videos that provide valuable information about insurance and risk management to potential clients.
- Generate leads by running ads online, although keep in mind that insurance is a competitive industry, and the cost per click can be high.
- Develop a marketing plan that conveys your messaging and focuses on what you can do for clients. Such as marketing videos, social media ads, and testimonial videos that tell true stories of how you went above and beyond for clients.
How Do I Become a Successful Insurance Salesperson?
Becoming a successful insurance salesperson requires cultivating skills and qualities that help build a strong foundation for a career in the insurance industry. Here are ways to cultivate skills to help you succeed as a salesperson:
- Practice a “growth mindset.” To develop this mindset, value the process over the result, take risks in front of others, and also find the silver lining in criticisms
- Learn how to prospect. Identify the client’s needs, avail insurance coverage samples and rates, and prospect from there.
- Read informative books on selling insurance before getting started.
- Use shared leads, buy your own leads, or reach out to your network of friends and family to find potential clients.
- Understanding a specific service and your target market can certainly help you make more money selling insurance.
- Define your agency’s selling strategy and, by all means, follow it consistently for every lead you touch.
- Use a variety of communication channels, such as email, phone, and text, to reach out to potential clients.
- Build relationships with potential clients by providing them with valuable information and resources.
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