Selling Insurance Based On Value, Not Price

When it comes to selling insurance, the number one concern of customers is often something you don’t have much control over: price. Insurance companies set their prices, and you can only do so much to find an affordable plan for a customer. However, a skilled agent can make a sale by refocusing the conversation on value instead of cost. Connecting with customers on a deeper level and helping them understand the value of insurance can lead to more sales.

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Figure out what your customer needs by listening.

Know Your Customers

The first step in selling insurance is to know your buyers. Some care only about price, but many want to find the right coverage, which is more valuable to them. These customers do not necessarily want the lowest-priced policy, they want the policy with the biggest bang for their buck. They may be willing to pay a little more for a policy that meets their exact needs. Let them tell you what they are looking for, and then help them identify the difference in plans, the risks, and coverage gaps. This will help both of you to figure out how to give them the most value for money.

Explain The Claims Process

If a potential customer comes to you with concerns about price, remind them of the value of the plan and how it will benefit them. In order to help them understand what they are getting for their money, explain the claims process. If they see concrete examples of how much they will pay out-of-pocket versus how much the insurance company will pay, then they can make a more informed decision. They may see the value in choosing a more comprehensive plan when they see the hefty bills that they could be facing with a basic plan.

Educate Your Prospects

Some potential clients may also come to you with a limited understanding of how insurance actually works. It is your job to find ways to explain the ins and outs of different policies in ways that are easy for them to understand. After all, that’s why they’re coming to you, the professional:  they are looking to you for communication  and information. Take the time to make them feel comfortable about their policy, as well as to explain any terminology and answer any questions they might have. 

two sets of hand, both with a pen in their hands pointing at paperwork.

One of the most important things you can educate your potential customers on is the risk and possible costs of not having insurance. Customers will have a better understanding of the value of insurance when they are met with the reality of what it  can cost  not to have it. Compare how much money they would save when having a policy versus how much they can potentially lose when they do not have one, or one that doesn’t offer them enough coverage. For example, explain to a customer that while they might save $30 a month by not purchasing a more comprehensive policy, they would stand to lose way more if they were in an accident or were facing a serious illness with either no insurance, or a plan that covers only the basics. 

Compare Insurance Policies

As we have pointed out, some customers’ first instinct will be to choose  an insurance plan that offers the bare minimum or basic essential benefits, simply because it’s the cheapest. But it is important to help them see that the cheapest plan is not always the best option for some people, especially those with families or health conditions. Offer to compare different policies and explain to them which plan is best for their needs, but also make sure it fits their budget. Again, know your customer. If the plans you come up with are  too expensive for them, they will be turned off and avoid doing business with you. It’s all about offering the best value for their money.

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