Selling Life Insurance: Questions To Ask Prospective Clients

Life Insurance is both necessary and valuable. It gives peace of mind to the clients and it can be a very lucrative business. The point of life insurance is not only financial protection from an unexpected death, but also something a client can borrow against in times of emergency. In order for an insurance company to make a profit, the company must bring in more premiums than it pays out claims. Toward that end, there are things you can do to lessen the risk of losing money.

First, you must keep your overhead low until your business is running smoothly and you begin to show a profit. Do every job that you can, so that you don't have to pay someone else. One way to do that is to pay a very low salary plus commission so that your employees are motivated to sell. You may offer bonuses for your top sellers after a certain dollar amount is sold. Another thing you can do is get out there and generate some leads. Don't pay someone else to do that for you, it is a waste of money (at least at first) and you are in a better position to decide which leads are good.

Questions that you ask your prospective clients can be very important in lessening your risk of loss. Some of the questions are obvious such as, medical history, age, tobacco use, height and weight, and the amount of insurance the client is considering. Other questions may not be so obvious such as, the ability to live independently, what other companies your prospective client may be considering, the highest premium your client will accept, career concerns, and any alcohol, drug, and risky driving history. Additionally, you will want to know if your prospective client engages in other types of risky behavior, (i.e. skydiving).

Finally, offering your prospective client a small discount for signed referrals may help your business. Following these suggestions can go a long way to getting your business off to a great start.