How to Avoid Costly Mistakes When Selling Insurance

Being a successful Financial Representative or Insurance Agent is not just about making the most sales. Many top producers will tell their clients that the key to success is generating residuals from investments, and being able cross-sell products to loyal customers year after year. This is how many people make it to conferences and have long, fruitful careers.

Strong customer service skills are essential to achieve this success, especially in today’s fast-paced and impersonal world of auto-respond. There are many ways to lose clients, but here are five key mistakes that can end a client’s relationship.

You Have to Be Right!

Clients have many choices, especially in the insurance industry. Arguments with clients are more effective than arguments. If a potential client knows exactly what they want and how much, you need to listen. While you can argue all you like about any particular option or choice, the client who is clear on what they want will ultimately make the decision and choose the agent who will make it happen. In this situation, it is best to be open with clients and suggest solutions.

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Product Knowledge!

It’s okay to not know everything. It is not necessary to know everything in order to be successful. Learn a little bit about one thing. If you are not able to grasp the basics of a product, you won’t be able to succeed. Let clients know that you will answer any questions they have about a product or that you can refer them to a colleague who is an expert on the product. It will strengthen the relationship between your client and agent as they will perceive you as having their best interests at heart.

One Ear, Out the Other!

Communication is a two-way conversation. Listen to your client’s entire conversation. After they are done, you can say “Let’s make sure I understand your words ……”” and then repeat the conversation in your own words. This will ensure that they understand. Ask them for more information if you are having difficulty understanding a particular topic. How many times have your questions been answered with an incorrect answer? Have you ever done business with the person? Most likely not.

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Being impersonal!

Sometimes we can all be impersonal. It is easier to send someone an email or leave a negative message than to call them personally. It can work sometimes, but it can also make your client feel less important than if they call you. Give the client the respect they deserve and give them the opportunity to call you. If you don’t, they might not call you when they transfer their business to another agency.


Many needs can be met by one policy with today’s insurance products and services. They can be flexible and offer a variety of cash values and death benefits. There are also many funding options. Be careful not to overestimate features and benefits, as this could lead you to lose the primary purpose of the product. You will not be able to offer a realistic cash return for a life insurance policy. This could lead to a lawsuit. Show your clients what you can use them for.

It’s easy to lose sight of the basic principles that our parents taught us about treating others as we wish to be treated. You must be a great communicator and have excellent customer service skills to succeed in this industry. You will see an increase in your residual income and cross-selling possibilities. People will also feel more comfortable referring you to their friends and families.

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Christee Fontanez moved her focus to online marketing and advertising several years ago after securing her place as a top seller in the Financial and Insurance Industry for many years. She combines both and works now to create results-driven marketing campaigns as an independent advisor.

She has developed her own system to generate business to business leads and business to consumers leads. Now she shares this knowledge with others who want to improve their profitability.