Selling Insurance

Selling insurance can be fun when you get to meet various kinds of people and talk to many interesting people. However it can also be stressful when you need to meet your quota.

When it comes to selling insurance policies, I like to sell endowment policies. They are much easier to sell. Selling endowments are generally easier because many people like the idea of savings and endowments are actually savings and they have the extra benefits of offering protection to the policyholders.

Generally when selling insurance, I will first of all do a financial plans for my prospects. I will find out what are the investments and insurance policies they already have, their needs, their income, their expenditure, their dependents and not forgetting their estimated retirement age. I will do a financial risk tolerance level for them too, to see how much risk they can take so that I can know what sort of plans would be better for them.

After getting to know my prospects, I will go on to tell them what are the products which I can recommend them based on their needs. Different prospects have different needs and they have different risk tolerance level too. Depending on the age, risk tolerance levels, their needs and the prospects budget etc, I will do a calculation for them to see their financial shortage in various areas. After the financial needs analysis is done, I will go through all the details with my prospects and explain how I can package any financial plans for them.

Endowments are generally very good sellers for me. It comes with cash benefits which can be given back to policyholders at regular intervals such as yearly, every 2 years or every 3 years. Giving prospects the ideas that they can insure their life and at the same time enjoying a discipline savings that has a higher interest rate than the bank generally makes the sale half accomplished. I would tell them the benefits of using the cash benefits, which is like extra bonus being paid to them, something like ‘magic money’ or ‘red packets’ being paid to them to reward them for paying the premiums all the while. Getting the cash benefits are ways of rewarding themselves — shopping for their love items, going tour with their love ones, buy stocks and shares, go medical checkup, and so on. They can just do anything with their own money!

Women love shopping. Giving them the ideas of money(as in cash benefits from endowment policies) for shopping might help for some women. Offering free gifts is also a good way to promote your business.

Endowment policies can also be packaged with home mortgages. Endowment mortgages are mortgages where the interest on the principle of the mortgage loan is due. The principle of the loan is covered by a type of insurance known as an endowment policy. The endowment policy ensures the mortgage holder will be able to pay off the loan when it comes due. In the UK, endowment policies are known as endowments.

An endowment is an insurance policy and the policy holder must pay monthly premiums. Endowment policies where issued in the 70’s and 80’s and were thought to be able to pay off the mortgage loan completely. However, for a number reasons, many of the endowments are plagued by a shortfall. That is, they won’t pay enough to cover the mortgage amount coming due. In some cases, policyholders are surrendering them to the issuing insurance companies for ridiculously low prices. The UK government stepped in with legislation to protect consumers by informing them that they may have higher value with a endowment policy selling service. Some policies are not all that desirable to purchase for many buyers, however it is just a case the seller being able to find the right buyer for their unique endowment policy. Someone will want to buy it. By selling their endowment policy through such a service, the endowment policy holder may receive up to 35% more for their policy.

After I had offered my solution to them, it is time for the prospects to make decision — decision to choose which option they would like to take up. I generally offer alternatives options for them, so they would not need to crack their heads. I would tell them the advantages and disadvantages, and all the comparisons etc. Most sales were closed after I had finished my presentation, though not all; as usual there were prospects who need more time to think or they have some other reasons. That is parts and parcels of sales. With follow-ups, they will respond and appreciates you eventually.