Category Archives: Life

The right way to market and sell life insurance

The topic of life insurance is quite an entertaining one. Well, purely for the process that leads people to eventually buying life insurance.

Most people start out with an irritation towards life insurance sales agents and the prospect of their pending death being held against them as some sort of commodity. But, eventually, when marriage, children and life-changing investments come into the picture, we’re rather quick to go knocking on insurers doors.

One could argue that the “stigma” around life insurance marketing and sales pitches is the way in which they are presented to audiences who aren’t ready to hear: “have you sorted out your life in the event that you might die tomorrow?”. And who can blame them?

We’re going to be talking about a few ways to change your approach as an insurance company and change the minds of potential clients.

Find something in common

Salespeople, in every industry, need to have a knack for communication and connecting with people. And even more so in the insurance industry where the end of a person’s life is under discussion. You can’t start with a hard life insurance sell.

Start by learning more about your potential client and find something the two of you have in common. Not only will it help you personalise your sales pitch (and we’re getting to that), but it will also make your clients feel more comfortable to open up to you and trust you as an advisor for a huge life decision.

Personalise your sales pitch

Every customer is looking for a customer experience with a brand that promises to change their lives and then delivers. And it’s for that reason that an established relationship and personalised sales pitch is necessary. It’s also why generic cold calls and “threats” don’t work when it comes to selling life insurance.

It’s not about knowing each individual in your prospecting list of clients. But you need to narrow down your audience and know who you’re talking to. Through marketing campaign analytics and even your social media’s statistics, you can keep track of your audiences demographics, interests and needs.

And with this information and placing your audience into segments, you can cater for specific audiences and, in that way, personalise your sales pitch. That way, when you do your cold calls and know who you’re talking to, you can be more sensitive towards the prospecting client.

Calling up a twenty-something-year-old and telling them they need to invest in life insurance today and think about how their families would be able to cope without them. Not only do they experience that as insensitive, but their first reaction is that it’s irrelevant. Take a moment to change your perspective as a salesperson and rather communicate by speaking of the benefits it will have should they start life insurance now and what monthly payment options are available.

Relate through human emotion

Now, when we think about life insurance advertisements they’re either in-your-face life insurance or seemingly completely irrelevant. No one wants to watch an advertisement that consists only of experts sitting in an office and giving you the statistics on life insurance and how death affects a family (skipping over the entire grief period while they’re at it).

You need to find the balance between introducing the people of your company, the work your company has done and the lives your company has changed. Because that is what people are more interested in – someone or some story they can relate to.

Testimonials are a great way to get an audience to relate through human emotion. They want to listen to the people with similar stories and situations as them. They want to hear that it’s possible to save money, have living benefits and have life insurance pay out when the time came and the family was in need. Your target audience would rather find out that way that having life insurance is, actually, important and that the weight of responsibility that falls on those you leave behind can be tremendous and hard to deal with.

Young adults with no evident responsibilities won’t need to hear about how a middle-aged person with a partner and children is benefiting from life insurance because they aren’t in that stage of their lives yet and their answer to an insurance sales agent would be “I’ll wait until I need it”. What they need to hear is words coming from a fellow young adult who can rest assured because they know they’re covered should anything happen now and, even more so, later in life because they started now.

How you can do it

The right way to sell and market life insurance is to get to know your audience and give them whatever it is they need to relate to your company and your product. Take a look at your website and see what it says to people who have no idea what life insurance is about.

The AUL website, for example, gives comprehensive breakdowns on what they offer, who they work with, the people they help and what their mission is. It’s not about doom and gloom threats to get people to buy insurance from you, it’s about fulfilling a need and being a part of a process that will change their lives.

Anyone can be rich and here’s how

Far too many of us believe that wealth and a full bank account is unattainable. A privilege only the minority can enjoy. But that’s simply not true. Everyone has the ability to accumulate wealth but not everyone has the understanding to do so. You need some smarts to be to able to make the amount of money your heart desires. What’s more, the goalposts are always moving because the economy is constantly fluctuating.

At the beginning of this year, South Africa was sinking deep into another recession. Recently, it was announced that this is no longer the case. However, that doesn’t mean it’s easier to live in this country. The cost of living is actually far too high for most of our various incomes and this means that very few people consider themselves wealthy. So, while it is difficult to become wealthy it’s still not impossible and definitely something you should strive for.

There’s a saying that you should always pay yourself first before paying anyone else. And while this is ideal, not everyone can afford a savings account. But if you can’t save, it’s likely because you’ve mismanaged your money in the past and your debts are bad and your lifestyle doesn’t match your paycheck. The list of reasons for a lack of savings are endless but you can fix it. And with some patience, discipline and tenacity you’ll be sitting flush with cash and a growing savings account in no time.

The most simple tip is to spend less than you earn

Life doesn’t always play ball on this one but if you can manage to spend less than you earn you will be able to get richer each month. You should save some money each month. You must ensure that, even in the difficult months, a small fraction of your expendable income must be put towards your rainy day account. You’ll thank yourself in the long run because future “difficult months” can now be handled easily.

Debt is debt, good or bad

Most people think that debt is just a part of normal life and that everyone is struggling with the same problem. In reality, debt is bad. Yes you need to accrue some debt to create a credit history and yes you’ll probably need to finance your car and get a bond on your property, that’s part of life. But any debt outside of this is actually unacceptable if you’re trying to garner wealth. And you need to be clever about how you create this debt. For instance, if you move to or live in a major city like Johannesburg you will need a car. It is dangerous to not have one. But you mustn’t finance a new car and hope to create wealth. This is silly debt. You want to find dealerships who specialise in used cars in the Gauteng area and find the best buy for the least amount of money. If you can finance a car like this and pay it off in three years or less you’ll have gained.

And similar principles apply with purchasing a property. You want to purchase the worst property in the best area so you’re assured of a return on investment when and if you decide to sell. You can throw some money into the property over a couple of years so that you create more opportunity for profits when you sell. Ultimately, unless getting into debt is going to make you money eventually, don’t do it.

If you’re wearing your wealth you’re doing it wrong

You’ll often find that the wealthiest people don’t wear their wealth in the form of designer clothing, watches and luxury cars. And don’t consider celebrities here, they’re required to dress in the best and drive the fanciest because they are in the public eye all the time. The reality is that spending your money on these things will not help you in the long run.

All of your investable money you should pump into a portfolio of investments that’ll offer you rewards. Of course, spoiling yourself every now and then is fine. Treating yourself when you need a new watch or setting your home up for comfort or even travelling all over the world, these are all things that you can enjoy when you’re wealthy. But investments first, assets first and future wealth should be a priority.

Be risky

Of course, don’t put yourself or your loved ones in danger. But if you have some money to play with – and with knowledge and guidance – take a couple of risks with investments. Because essentially unless you have a special talent to exploit or create a business out of, or unless you marry rich, win the lottery or inherit a bunch of cash, there’s no other way to make cash other than taking a measured gamble.