How to Sell Term Insurance
Life insurance is a financial product that protects individuals from financial ruin. If you want to become a life insurance agent, you'll need to know how term life insurance is sold. Term life insurance is an insurance product that provides basic life insurance protection for families. This type of policy pays a commission to you when the policy owner makes a premium payment, which gives you an incentive to continue selling policies. Make sure you understand how to properly sell term life so you are making suitable insurance recommendations.
Other People Are Reading
Instructions
-
-
1
Assess your client's goals. Your client should be able to tell you what his financial objectives are and what he wants to accomplish. You may need to ask questions to determine these financial goals. Questions like "Where would you like to be financially one year from now, 10 years from now or 20 years from now?" can help your client think long term about his finances. You'll get an idea of whether he'll need life insurance to support his family, if he needs insurance as part of a business plan or if he won't need any insurance at all.
-
2
Fill out a fact-finding form. Once you've discussed your client's goals and determined that there is a need for life insurance, you should complete this form. The form will list all of your client's assets and liabilities. It will give you information you need to know about any debts that are uninsured and how much money she will leave to her family if she were to die tomorrow. This information can be used to determine whether she needs term life insurance or permanent life insurance. If her need for insurance is temporary, meaning she has or will have sufficient savings by retirement to eliminate the need for life insurance, your client may be best suited for term life insurance.
-
-
3
Determine which type of term policy is most appropriate. There are two basic types of term life. Annual renewable term life renews every year. The policy is suitable for times when your client has a very short-term need for life insurance. Annual renewable term life insurance premiums increase every year, making this the most expensive type of insurance over the long term. Level term life insurance, on the other hand, is insurance with unchanging premiums. The level premiums may be guaranteed for up to 30 years.
-
4
Fill out an application for term life insurance after you've determined which type of term policy is best for your client. Include the person's name, address, Social Security number and other personal information. You'll also need to get your client's driver's license number and employment information. The insurer will want to know how the policy will be paid for. You'll need to ask your client a series of health questions, including some about current and past medical problems. Your client's answers will determine whether he qualifies for the insurance policy. Finally, you and the person must sign and date the application. You will also collect the first premium payment from your client.
-
1
References
More Like This
Comments
-
THTS INFORMATIV
