If you’re looking for a lucrative, flexible and rewarding career, life insurance sales may be just what you need. However, success isn’t guaranteed. In fact, Investopedia says only a small percentage of life insurance agents are still in business after the first year. When you’re relying on commissions, you only make money when you close deals, so you need to know how to sell successfully.
Why Bother Selling Life Insurance?
The 2025 Insurance Barometer Study from LIMRA and Life Happens found that 40% of Americans adults believe they need more life insurance. That’s around 100 million prospects.
Unfortunately, even though many adults know the death of a wage earner can lead to financial hardship, many people have not taken steps to get coverage. Sometimes this is due to misconceptions, such as the common assumption that basic term life insurance is much more expensive than it is.
By taking on life insurance sales, you can educate people and help them get the coverage they need. In the process, you can earn commissions and enjoy a flexible career. The following three tips can increase your chance of success.
1. Become an Expert
When you talk to clients about life insurance, they’ll depend on your expertise, so you important to know what you’re talking about.
If you’re new to insurance sales, you’ll need to get your license before you can start selling any policies. If you’re already a licensed insurance sales agent, you may already have the licensing requirements you need, but verify with your state’s licensing board. For example, in Texas, the General Lines – Life, Accident, and Health license lets you sell life, health and annuities under a single license. To secure your license, you’ll need to pass a test, complete a background check, submit an application and pay a fee.
Beyond licensing requirements, you may need to brush up on your knowledge, especially if you’ve been in insurance sales for a while but are just getting into life insurance now. Be prepared to help clients understand:
- How to use life insurance in financial and estate planning
- The different types of life insurance
- Life insurance riders
- The tax implications of life insurance
- How to assess life insurance needs
2. Build Your Portfolio
Imagine opening a bookstore but only stocking it with hundreds of copies of the same book. You probably won’t be very successful. The same basic concept applies to insurance sales. Success in insurance sales is easier when you have a strong portfolio.
A strong portfolio should include:
- Multiple Life Insurance Carriers. A big part of selling insurance is finding the right match for the right client. Because client needs vary, this can require access to many different carrier options. For example, you may have a client whose risk profile causes problems with some carriers but not others, or you may have a client that needs a less common rider. The more options you have, the better.
- Multiple Types of Products. You can make a living just selling life insurance, but you’ll be making things harder for yourself. If you sell life insurance, you’ll probably only sell one policy per client even when you’re successful, and if a client doesn’t want life insurance, you won’t sell anything. On the other hand, if you also sell health insurance and annuities, you’re more likely to offer something that meets a client’s needs, and you may even be able to make multiple sales to a single client. Cross selling can even boost retention since you’re meeting more of your clients’ needs and giving them fewer reasons to look elsewhere.
3. Get Support
Success is easier when you have support. Look for an organization that can help you complete training, master marketing and grow your business. Carrier access is also important. With the right support, building a well-rounded portfolio is easy.
PTT Financial provides robust training, marketing, and business growth support. When you partner with us, you’ll have access to around 30 carriers offering life insurance and annuity products, and that’s in addition to our robust Medicare insurance offerings. Learn more.