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A Smarter Way To Sell Life Insurance

Why It Matters:

  • Life insurance isn’t something clients deal with every day. All the different options can be very confusing.

  • Delivering a relatable message can be more memorable for clients instead of just throwing facts and figures at them.

  • Comparing a smartphone to today’s combination life insurance policies can help clients relate to the convenience, flexibility, and sophistication found in a modern IUL.

Sometimes it takes a worldwide pandemic to get clients thinking about their own mortality and the subject of life insurance. If you’re like many financial professionals, you’ve likely seen an uptick in clients looking for life insurance for when the unthinkable happens. In fact, industry expert LIMRA says that the likelihood to buy life insurance is at its highest point in 10 years.1

But life insurance isn’t something clients deal with on a daily basis. All the different types and options can be quite confusing for those new to shopping for something they hope they won’t need any time soon. Even LIMRA reports that 71% of consumers surveyed are more confused after they meet with a financial professional than before.2 So, how do you impart your vast knowledge on the subject without overwhelming them?

You can present features and figures all you want, but clients don’t always retain that information. Sometimes they need a simplified message they can relate to.

Using stories to be memorable

According to the Stanford Graduate School of Business, messages delivered as stories can be up to 22 times more memorable than just facts. 3 That means finding an interesting way to present your solution during a client meeting that they can easily understand and identify with. It also means avoiding a lot of industry jargon and taking a more everyday approach.

A smart analogy

Ask your clients to think back to a time, not so long ago, when they needed multiple devices to perform multiple functions. A time when their phone was only used to make phone calls, cameras only took pictures, and they needed a computer to surf the internet or check email.

Fortunately, technology has evolved — as have consumer expectations. Today’s consumers now look for convenience in a single product that can serve multiple needs. The smartphone lets them check email, surf the internet, watch TV, take pictures, and more. And they can customize their experience by using apps to address their personal needs.

Life insurance: evolved

Similarly, at one time, life insurance — like phones — only provided one thing: a death benefit. If a client wanted protection for critical illness, long term care, disability, or tax-advantaged savings, they had to purchase multiple products, making the job of protecting their family more complicated and expensive.

But today, a combination life insurance solution, like an index universal life policy, can address the need for a death benefit as well as needs like long term care, critical illness, cash accumulation potential, funeral concierge services, and more — all in one package.

Customizing a solution

Just like the use of apps on a smartphone, you can help clients create a customized policy by adding various riders and living benefits to address their needs. If a client is concerned about long term care, there’s an app (rider) for that. Do they want protection from a disability? You can help them cover it by adding on a rider to the same policy.

By using the smartphone analogy with clients, you're taking a multipurpose product they use every day and aligning it with the multipurpose life insurance protection they need. The presentation becomes more memorable and relatable. Plus, you’re able to convey the convenience, flexibility, and sophistication found in an index universal life policy, without overwhelming them.

What consumers want

LIMRA expects combination products like IUL policies to be what consumers will be looking for in the months ahead, “The COVID-19 pandemic will certainly influence consumer perceptions of combination-life products and will likely drive a significant increase in interest for these products.” 1

Asking smarter questions

But how do you know what truly motivates a client's decisions? Listen to their personal experiences. Ask questions that require some explanation, such as:

• When was the last time you completed a financial needs analysis?

• Have you ever known anyone who suffered from a serious medical condition?

• What do you think about the possibility of paying for long term care coverage you may never use? 

Once you know what’s important to your clients, you can work together to create a customized policy that addresses their many needs.

Things to Consider:

  • Start using a smarter sales strategy like the smartphone analogy when presenting to clients to help make your solution more impactful.
  • Ask the right questions to learn more about the specific needs that might be important to your clients.
  • Make sure you understand the advantages of all the different riders and living benefits available with today’s IUL policies.


1 2020 LIMRA Life Insurance Barometer Study, LIMRA, 2020

2 The Soft Skills Gap: Enhancing the Advisor-Client Experience, LIMRA MarketFacts®, Number 1, 2020

3 “Harnessing the Power of Stories,” Stanford University, accessed January 2021

Transamerica Resources, Inc. is an Aegon company and is affiliated with various companies which include, but are not limited to, insurance companies and broker dealers. Transamerica Resources, Inc. does not offer insurance products or securities. The information provided is for educational purposes only and should not be construed as insurance, securities, ERISA, tax, investment, legal, medical or financial advice or guidance. Please consult your personal independent professionals for answers to your specific questions.