Mastering prospecting: Effective strategies for selling life insurance

By Drew Gurley

The most successful life insurance agents use prospecting language that centers on the client’s situation.

I know that sounds ridiculously obvious. And simple.

Well, it’s not that simple. Every prospect’s situation is unique and an agent’s ability to bob and weave through a wide range of objections and issues is most often the difference in making a sale.

Below are three distinct scenarios agents regularly encounter. What can be learned from these three applies to many other scenarios, which we cover in the last section.

3 scenarios for presenting life insurance

1. Young families

With mortgages, childcare costs and daily living expenses taking priority, young families can be challenging for an agent. How do you convince them that life insurance is a necessity, not a luxury?

The objections we often hear are reasonable. “It’s too expensive.” Or, “it’s only for later in life.”

Start with reframing life insurance: "I understand you’re balancing a lot of expenses right now, but there are a lot of options that won’t break the bank. For the price of a couple of tanks of gas, you can ensure your family is financially secure when the unexpected occurs." Now, life insurance is positioned as a smaller, manageable expense with a big long-term benefit.

You can address the objection that life insurance is only for later in life by positioning it as a misconception. "Actually, buying life insurance while you're young and healthy lets you lock in lower rates versus if you waited 10 or 15 years."

2. Small-business owners

This is a huge opportunity agents overlook.

Small-business owners often have most of their wealth tied up in their company, and their success depends on the daily operation of their business. If something were to happen to them, the future of the business — and the financial well-being of their family — could be at risk.

Key man insurance can provide a safety net that keeps the business running smoothly in the event of an untimely death.

Frame life insurance as part of a small-business owner’s overall risk management strategy: "You’ve worked hard to build your business, and life insurance can ensure that your family and employees are financially protected if anything happens to you or a key partner."

If the client believes their business assets or investments will cover any financial gaps, explain that life insurance provides immediate liquidity. "Your assets are valuable, but they might not be easily accessible in a crisis. Life insurance gives you fast access to cash that can keep the business running, cover payroll or settle debts."

And, not unimportant, life insurance provides peace of mind at a time when business associates and the family are reeling from a death.

3. Middle-aged to nearing retirement

The primary concerns of those in this age group often revolve around paying off debt, saving for retirement or helping their children through college and getting started in life. Many think they no longer need life insurance, often ignoring how it can create a legacy.

Start by acknowledging their hard work: "You’ve worked hard to build what you have, and life insurance can help ensure your assets are passed on to your loved ones without burdening them with taxes or final expenses." This appeals to their desire to protect their family and maintain control over their financial legacy.

Be prepared for the most common objection: "I already have life insurance through work.” Remind them that most employer-sponsored coverage will not follow them if they leave the company.

Broader applicability

The three scenarios also act as a framework adaptable to a range of similar scenarios. Here are a few additional examples:

Young professionals building wealth. Young professionals often delay buying life insurance, believing it’s only necessary once they have a family. Focus on how purchasing it early can lock in lower premiums. Try this approach: "Starting young not only secures your future family’s protection but also builds a solid financial foundation as you grow." This helps frame life insurance as a proactive financial move rather than an immediate necessity. For individuals with student loans, consider explaining how life insurance can protect co-signers (often parents) from debt should something happen to them.
Self-employed professionals and freelancers. Many in this group don’t have employer-provided life insurance and face variability in their income stream. These clients will benefit from understanding how life insurance adds financial stability.
Divorcees and single parents. Much like young families, they often focus on protecting dependents but may feel overwhelmed by existing financial obligations. Emphasize how life insurance provides immediate financial relief in case of an unexpected death, ensuring their children are supported.

To conclude, a successful prospecting conversation starts with listening. It may take a couple of conversations to get a prospect to open up about their true concerns and needs. Be ready when that happens with thoughtful options and ideas.

Drew Gurley is a licensed life insurance expert with nearly 15 years of experience. During his career as both a licensed life insurance agent and industry executive he has helped thousands of clients with their life insurance needs through his work at Redbird Advisors and Senior Market Advisors.