Sat. Jan 25th, 2020

The Biggest Challenges of Being Life Insurance Agents

From competitive perks and commissions to a special task of helping others understand their financial needs, there are many reasons to love an insurance agent career. But just like any other job, there can also be advantages and disadvantages to being an insurance agent. The first and most obvious: the art of insurance selling, which is a tough way of making a living and sustaining a long-lasting job. 

With different insurance companies sprouting here and there plus the visible rise of competence among their agents, it is imperative to know the potential problems facing life insurance agents, especially when you want to play the role of one and dive into the insurance industry in the future. Knowing these challenges does not intend to scare you but rather prepare you when it comes to the overcoming phase. 

The Lead Generation Difficulty

While some insurance companies depend on advertising agencies and business listings to promote their brand and generate leads, others would still entrust the method of marketing with their agents. Generating leads could be an intimidating task for newly-hires in the industry and tiresome for veterans who have served the company for many years now. There are no specific procedures on how agents perform lead generation tasks because agents themselves are responsible to try whatever it takes to boost the company’s insurance sales leads. Some common ways include building networks and partnerships in certain community, utilising social media platforms, exploring tools for email newsletters or podcasts, and face-to-face clientele meetings on a daily basis.       

Commission-based Salary

Insurance agents have two different methods of earning. For most companies, agents are considered as independent contractors, which means their salary is 100% based on the commission that is upon approval of a customer’s application for a life insurance policy. In this case, the company does not offer basic salaries or benefits. Although the agent may enjoy flexible schedules, if he or she fails to input sales on the books, the agent goes without paychecks. Some companies, on the other hand, offer basic salaries and benefits to insurance agents in return for a requirement to reach the company’s rigid production quota. 

The Stress and Pressure to Acquire Customers

Finding life insurance prospects is not an easy task despite utilising the power of the internet and social media platforms. For a typical agent to accumulate a fair commission, he or she has to generate exclusive leads. But it’s not every day that they can accumulate exclusive leads. This means that the percentage of what they sell has to be remarkable for them to at least make a break-even with exclusive leads. In this case, some agents would take all the strategies, whether they be in old-fashion (cold-calling, dook-knocking) or modern ways, to generate good leads and acquire more potential clients.   

Overcoming Stereotypes

Insurance agents are often stereotyped as fraudulent characters whose only purpose is to get your hard-earned money. Meaning to say, no matter how dignified you are when it comes to your job, the increased rate of insurance fraudulence has already influenced how people see agents like you. Stereotyping is something that’s not easily changed so it takes a lot of perseverance for an agent to gain back the trust of his clients.    

The Selling Process

Life insurance is probably the most difficult product to sell, especially when not everyone is interested to talk about his own death. And hence, the selling process could be the most challenging part of a life insurance job. Just because you’ve found the most qualified prospect for this product does not mean you can get an easy sale. Most agents would already sense whether the customers are sincere when they say they’ll think about it or not. Because more often than not, people won’t think about availing a funeral insurance even a minute after agents walk out through their doors.  

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