The Challenges People Face When Choosing a Career in Life Insurance Sales
Seasoned life insurance agents know the struggle to sell all too well. Life insurance industry analysts place the burnout rate for first-year life insurance agents at higher than 90 percent. That’s fewer than one in every 10 people who begin a career in life insurance sales remains in the business for longer than a year.
Life insurance sales is challenging for agents for a number of reasons. For starters, the compensation is usually entirely commission based. It’s difficult to find qualified customers, and insurance companies can provide few life insurance leads. If that didn’t make life insurance sales hard enough, even when you do get exclusive life leads, the product itself can be hard to sell. Unlike other insurance products, life insurance doesn’t provide instant gratification that leads to impulse purchases.
While new life insurance agents face many challenges, there are benefits to choosing life insurance sales as a career.
- Life insurance sales agents are in high demand
- Commission percentages for life insurance sales are higher than other insurance sales
- Life insurance agents get paid commission on renewals for every year the policy is enforced, creating an additional income stream
Here are some pros and cons to life insurance sales careers:
Pro: Most life insurance agents are considered independent contractors which means they don’t receive a salary or benefits. The benefit to not being considered an employee, is that a company cannot force you to work set hours. As a life insurance agent you can work at your own schedule, but life insurance sales does take a lot of work, especially in the beginning.
Con: You only earn when you sell. You often don’t receive benefits.
You Must Acquire Life Insurance Leads
Pro: Some insurance agencies will provide you with exclusive life leads to help you sell. You can purchase exclusive life insurance leads for agents from life insurance lead generation companies.
Con: Life insurance is a competitive industry. Finding qualified life insurance leads is no easy feat. Many life insurance lead companies sell both exclusive and non-exclusive leads. Exclusive insurance leads can be expensive, and non-exclusive insurance leads have been sold to multiple life insurance agents. Employers who provide exclusive insurance leads often pay a lower commission, because they have to pay for insurance leads or lead generation services.
Life Insurance Sales
Pro: After time, you’ll learn how to pitch life insurance. There are multiple resources life insurance agents can use to help pitch and sell life insurance.
Con: Even when pitching to a qualified prospect, you can’t assume the sale will be an easy one. Life insurance is a difficult product to sell, because you have to bring up the topic of death.
If you’re starting a career in life insurance sales, and having trouble acquiring insurance leads contact Parasol Leads. We generate thousands of qualified life insurance leads each day for our agents across the country. We sell both non-exclusive and exclusive life insurance leads for agents. Spend less time prospecting for exclusive life leads, and buy life insurance leads today.