As a life insurance salesperson, you must possess exceptional interpersonal and communication skills as well as an in-depth knowledge of both your clients and their families.
Establish the appropriate type of life insurance for your client is vitally important, particularly with whole life policies that contain cash value features.
1. Determine the Value of Your Policy
As with most types of sales, it’s crucial to listen carefully and find solutions tailored specifically to each of your client’s concerns and needs. Building trust by understanding what concerns they have for the financial future allows you to establish lasting relationships. You’ll then be in a better position to recommend options that meet their current and future financial security needs – helping ensure their family finances are safe.
Be sensitive to how much life insurance your client can afford. Pressuring them into buying something beyond their means may create financial issues in the future and reduce their likelihood of looking to you for advice in future life insurance decisions.
Whole life policies provide not only death benefits but also accumulate a cash value each year, with its size depending on various factors like premium payments and death benefits received. This cash value can then be used for various purposes such as paying premiums or creating an emergency fund.
Investors looking for a secure investment vehicle might consider buying whole life insurance policy as they will likely be drawn in by its high cash value and financial strength rating of the insurer, often seen as being more likely to remain around and pay out claims in years’ time.
If a client requires immediate cash, a viatical settlement could provide them with instantaneous relief. Though death benefits will be reduced slightly and additional fees may apply when selling, viatical settlement can provide instant access to immediate funds that would have to wait.
To sell your policy, it will require working with a broker or settlement company that can match you up with potential buyers. When making this important decision, take your time comparing offers until you find a price you are happy with – plus there may be transaction fees as well as taxes to consider!
2. Find a Broker or Settlement Company
For your whole life insurance policy to sell successfully, you will require the services of an approved broker or settlement company. A broker will market it to multiple potential buyers until he or she obtains an acceptable offer, at which point it becomes yours and they begin making premium payments immediately. If accepted, they become new owners of your policy and start paying premiums themselves.
The amount you receive for your policy depends on many factors, including your age, health status and death benefit size. As you get older, the buyer can more quickly profit from your death sooner rather than later; health conditions, such as terminal illness or chronic disease also impact its value – more severe conditions will decrease death benefits, thus decreasing offers made in exchange for your policy.
Whenever it comes to selling life insurance policies, finding a reputable broker or settlement company that treats their clients fairly is key. Check their track record, read customer reviews and check if they’re bonded; some states mandate bonding while others permit exemption if your settlement company has significant Errors and Omissions coverage or made deposits with their state treasurer.
Whole life insurance provides financial guarantees and accumulates cash value that can be used as an investment vehicle, while its death benefits provide beneficiaries with protection in case they need help meeting day-to-day needs or covering long-term care expenses. But if your policy no longer serves you, there are other means for extracting value such as surrendering it for cash, selling its death benefit value on eBay, or using it as collateral against a loan agreement.
Before selling whole life insurance, be aware that all sales are subject to taxes and fees. Before making the decision to sell, compare options carefully and consider your financial goals before selling – for instance using proceeds from its sale for retirement savings or education expenses for children.
3. Make an Offer
As a life insurance agent, your role will involve working closely with clients to discuss their coverage options and make recommendations that match up best with their needs and goals. Being knowledgeable of all the policies sold will enable you to best advise them and recommend coverage plans that fit their requirements and needs.
Many whole life insurance policies with cash value feature an accumulation component that accumulates over time and offers an investment-like return. You can withdraw this money at any time with interest being charged back into the policy; overall this type of whole life coverage tends to be more valuable than term life coverage.
Selling your life insurance policy for cash may be an ideal solution to some individuals’ financial struggles. Selling can provide immediate cash relief if medical bills or expenses become unmanageable; or it could help with divorce settlement costs or funeral arrangements after losing someone close. Before selling a policy though, it would be prudent to consult a financial expert beforehand.
As with selling any policy, trust is of utmost importance when selling life or other types of insurance policies to clients. Doing this will enable you to successfully close sales and increase earnings potential. Furthermore, practicing presentation skills will ensure smooth presentations that can easily be understood by anyone listening; visual materials like charts showing costs as well as pages outlining benefits would make for even better presentations.
Assurance provides an easy platform for life insurance agents looking to break into this career field, helping them easily connect with pre-qualified leads. Plus, with free weekly training sessions on offer to hone their selling techniques more effectively.
4. Close the Deal
Building relationships is key when selling life insurance; doing so helps build trust between you and your clients and makes them more likely to purchase your product.
One way of accomplishing this goal is by emphasizing listening more than talking. Doing this will allow you to gain a fuller understanding of your client’s family needs and identify solutions that meet them best. Once relationships have been formed, keeping in contact with clients shows they care about their future and are committed to helping them realize their goals.
Life insurance sales require negotiation, so knowing how to overcome objections is of the utmost importance. A great way to practice is to present in front of a mirror so you can observe how facial expressions may alter their client’s perception. Strive to remain calm yet confident when handling objections raised by customers.
Bring visual materials with you when attending sales meetings. This could include cost breakdown charts or pages outlining policy benefits – this will help your client more fully grasp your presentation, and ensure it remains fresh in their mind after you’ve left.
Once you’re ready to sell your policy, the next step is finding a broker or settlement company to assist in its sale. These professionals will assess its value before working with you to find a willing buyer willing to purchase it from you. Once a deal is finalized, its new owner will assume payment of premiums and any death benefits that would have gone directly to the previous owner.
Life settlement refers to taking over an insurance policy and selling it for cash in several different ways: (1) Selling to a life settlement company for a lump sum payment. (2) Trading your policy through 1035 exchange. (3) Surrendering it directly back to the insurance provider.
