How to Sell a Group Life Insurance Policy
Group life insurance policies are lucrative, particularly if you add one a month to your book of business. The renewal commission is normally just as high as the first-year commission. The more you have, the more solid a stream of monthly income you receive. You also have opportunities to sell to the employees on an individual basis. However, most reps know this and the market is difficult because it's crowded. In order to sell group life insurance, you have to make a lot of phone calls, perfect your presentation and give good service. Once you develop a few customers, you'll find that your confidence and business grow.
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Things You'll Need
- Business list
- Chamber of Commerce membership
- Telephone
- Competitive Quotes
- Group census
- Presentation
- Copier
- Paper
- Pen
Instructions
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Find prospects for your product. Most of the time, agents market group life insurance to businesses. However, there are also marketing opportunities if you have access to the president of large non-profit organizations. If you need to find prospects in your area, join the chamber of commerce and solicit business from the people you meet there. Another approach is to purchase lists of names of businesses. Dunn & Bradstreet is one of the better known suppliers for this type of list.
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Send out letters and follow them up with a phone call. A pre-approach letter outlining the benefits of your product is a great start for marketing. While some people cold call and drop off their cards, preapproach letters, while expensive, still save valuable time and money. Send the letter and wait a week before you make the phone call. Prepare a speech ahead of time, so you don't fumble once you reach the person you requested.
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Ask if you're speaking to the right person. Marketing group life insurance is difficult, not because of the product; that's easy to sell. The difficulty comes in getting an appointment to sit down in front of the decision maker for the business or organization. No matter how great the product or your sales presentation is, if you speak with the wrong person, it's a waste time for both of you. When you schedule an appointment, always ask if the person you scheduled makes the decisions on employee benefits.
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Find out when the company reviews employee benefits. Also ask if they're open to competitive bids and if they'll review the group life insurance. Even if you secure an appointment and either the date is a distance in the future or they are only looking at health benefits, you're spinning your wheels. If they review it in the far future, request the opportunity to do your presentation at that time. Ask the best date for your follow-up call. Log a note in your schedule to make the call. Make certain you include the name, phone number and date you originally spoke with the decision maker.
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Phone for the appointment. At that time, request a census of employees. Use your company or secure several competitive bids from other companies if you're an independent. Find out how many people review the material. Make certain you have enough printed material for each of them. Practice your presentation in front of a sales manager or spouse.
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Close the deal and follow up with any service requested. You may need to present the new option to employees or be available for them to ask questions. Give the client as much service as necessary to maintain a good relationship. The renewals are easier to maintain with service than it is to find a new client.
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