How to sell insurance: needs and problems

By Dan Vinal

WebPrez Insurance & Annuity Videos


According to scientific research in communication psychology and clinical studies of consumer behavior, the decision to purchase insurance is almost always the result of understanding the need to solve a problem.

When people don't see the need for insurance, they are not interested in discussing it, and they don't buy. They see the need only when they understand that they have a compelling or disturbing problem. So if you want to know how to sell insurance, you must first know how to sell the need or explain the problem.

Here's why it works

When your sales process begins with selling the need, and you focus someone's attention on a problem instead of a solution (product features and benefits), you accomplish three critical objectives:
    1. You establish trust and credibility, because you're presenting facts and various types of evidence as the basis for a problem that affects many people.

    2. You become more of an adviser (rather than a sales person) because you're helping them solve a problem instead of selling them a product.

    3. You create a sense of urgency and intention, because the problem disturbs them and compels them to take action in order to prevent or avoid the pain associated with the problem.
Examples of how to sell insurance problems

Auto coverage: "Bob, low cost auto insurance can leave you personally liable for tens or even hundreds of thousands of dollars. Can I show you how to protect yourself?"

Term life insurance: "Ann, hundreds of young, healthy parents are killed in car accidents every day, leaving their families without the income they need every month. Can I show you how to protect your family?"

Health coverage: "Steve, a serious traffic accident or a critical illness like cancer can happen to anyone of us at any time, and result in huge medical expenses. Can I show you how to protect yourself?"

Disability insurance: "Kathy, everything you have or plan to have is dependent on your income, which is dependent on your physical and mental ability to earn it. Can I show you how to protect your income?"

Examples of how to sell insurance needs

Auto coverage: "Bob, if you don't protect yourself with adequate auto insurance, you could be sued for everything you own and even forced into bankruptcy."

Term life insurance: "Ann, if you don't protect your family with enough life insurance, they could be forced to change the way they live, their schools, their friends, their opportunities and their futures."

Health coverage: "Steve, if you don't protect yourself from the high cost of medical care, you could find yourself unable to pay for the surgery or treatments you might need to save your life."

Disability insurance: "Kathy, if you don't guarantee yourself some sort of income replacement to pay the bills when you are too sick or injured to work, you could end up living with your family or friends."