• Do you have any victories you'd like to share for the month of May? Help us celebrate others by posting here.

What are the phases of selling a term policy?

Mattw

New Member
I'm curious from a general standpoint about the phases of selling a term insurance policy. If you were trying to sell a term policy to someone how would you proceed in a general way?

For example, there must be a phase where you are trying to develop rapport. There is a needs phase where you are trying to determine the insurance needs of the individual. There's the close.

1. Rapport
2. Needs
3. Close

I'm probably missing several phases. Any suggestions?
 
I'm curious from a general standpoint about the phases of selling a term insurance policy. If you were trying to sell a term policy to someone how would you proceed in a general way?

For example, there must be a phase where you are trying to develop rapport. There is a needs phase where you are trying to determine the insurance needs of the individual. There's the close.

1. Rapport
2. Needs
3. Close

I'm probably missing several phases. Any suggestions?

First thing is don't overthink! This is a people's business, you walk in since obviously you have an appointment, which really helps, I find people really hate it when you just walk into their home or office and start selling without prior permission.

Rapport, don't over play that! Your not there to be friends but obviously you hope they like you and will consider you a friend or friendly acquaintence in the end.

Ask questions, open ended and close ended, get them talking and find out what is and isn't important to them. We're talking 5 or 10 minutes so far maybe longer if you have long winded people. Listen to what they say, do they desire a big dollar term or a smaller one? One bread winner or two, children and desire to fund say a College fund if one should no longer be there? Debt issues, such as home. Do they have older policies you can replace with one or two larger policies at todays cheaper prices? Etc etc..

Explain to them how you can help them and then offer to fill out an App (the app should already be half filled out, they're free, don't worry about the trees that had to die for them!:D ) so you can do your due diligence and get them a policy that serves their needs. Offer a slightly higher price then you think you can get once the Carrier gives you the final offer. Its always helps when you get back in contact and tell them that the final price will be lower then you quoted! Depending upon the size of the policy and age of your clients you'll need to arrange a telephone interview or a Med appointment, sell that as a free physical!

Ps don't be a price motivated bottom feeder!
 
Last edited:
I plan to start selling term insurance because it is easy to sell. I want to establish that I can sell insurance. If I can't sell term insurance then I should get out of the business.

Once I establish that I can sell term insurance, then I will branch out to big and better things. Ultimately, I want to sell insurance products to businesses.

The primary purpose of this post is to make sure that I understand what's involved in selling a simple term policy. Other products will come as I increase my understanding of how to sell.
 
Just curious, sounds like a plan. So whom are you selling for? I would suggest finding a simple "Needs Form" from one of your companies along with some flyers and go hit the streets or phone. Yes Term may be the basic product and cheapest but I think you'll find the same thing I did as you get going, selling term is just as difficult as selling any product may it be UL or WL.
 
I don't have a job yet. I am talking with Mutual of Omaha and NYL.

If I can sell term then I'll quickly migrate to a UL product. If they're just as difficult to sell then I'll focus more on selling UL products.

I was thinking of ultimately selling 401k plans to businesses, but I need to walk before I run.
 
I would say selling term and permenant are about equally hard to sell. The key is to create pain and then find the solution (either perm. or term).
Here are the phases:
Rapport
Discover Pain- If you died, who needs money and how much? Can you be more specific? What would happen if you died today? How does that make you feel? Ect. Give a short education on term vs. perm.
Qualify - The cost to solve your problem is between X (term) and Y (perm), most people pick a number in between that they would feel comfortable with and buy as much permanent as they can without compromising the death benefit. What would be a comfortable amount each month? Who else besides yourself will make this decision?
Close- It's important to make sure you can qualify for coverage, would you feel comfortable applying to determine what rates we will get?
 
Explain to them how you can help them and then offer to fill out an App (the app should already be half filled out, they're free, don't worry about the trees that had to die for them!:D )

James, how crass----have you no feelings for those lovely trees!!:realmad: :realmad:
 
Give a short education on term vs. perm.
Qualify - The cost to solve your problem is between X (term) and Y (perm), most people pick a number in between that they would feel comfortable with and buy as much permanent as they can without compromising the death benefit.

Do you factor into the situation if the client is saving/investing for retirement? If not, do you think allocating funds to perm ins is still a good option?
 
Back
Top