How we sold life insurance?

We are used to a selling strategy that was based on selling life insurance products. Most often an insurance agent approaches a customer and tries to explain the product features in the hope that the customer will see value in the proposal to buy a life insurance product. But many changes have taken place in the market over the last few years.

What has changed in the market –
Customers have become more aspirational

For one, the customers have grown richer, especially the middle class. They now have more surplus money. As a result they have developed more personal ambitions and aspirations. They want to aim for a more comfortable current life and want their children to have better education for a better life in future. They have also started looking at planning for their post-retirement life in a bigger way.

What has changed in the market –
The customer has many more options to invest

They also have many options. They have government schemes for the elderly and for girl children. They have mutual funds, shares and debentures. They also have the traditional post office deposits and other small saving schemes.

What has changed in the market –
Customers want comprehensive financial planning

Customers realize now than ever before that they have to plan for the short term as well as the long term. They have short term needs and long term needs. A few of the customers also want to take a little risk in investments in the hope that they will earn more.

What has changed in the market –
More feet on street competitors

All these investment options come with their own set of agents/ brokers/ advisors. These intermediaries provide the competition on the ground, in the field, the place where you actually sell.

So how should we prepare ourselves?

In this changing market you have to sell life insurance. So how do you alter your market practices, your sales process, the way you relate to the customer and the way the customer should relate to you?

Your role is today different. It is not merely selling life insurance. It involves engaging the customer in the totality of his or her financial planning. It includes

• Identifying important short term financial needs
• Identifying medium and long term financial needs
• Understanding the current investment portfolio of the prospect
• Understanding the emotional long term needs of the prospect
• Spending time with the prospect on his or her needs
• Making the prospect talk about his or her needs

Customers will be grateful to agents who conduct such discussions. Such discussions lead to a clarity of mind on what they want to accomplish in life, what can be achieved and how they should conduct their financial planning.

Our focus area – long term needs
But discuss all needs first

While we sell for the long term needs, the long term needs are a part of the total needs in a customer’s life. Discussing all the needs and narrowing down to long term needs will go a long way in helping you close sales in a faster and more satisfying manner.

In all discussions the customer should be involved in the discussion. It is not your needs but the needs of the customer that are being discussed. You need to therefore develop skills and techniques to be able to accomplish such involved discussions with your customers. This is the new market and your new role. Happy selling!