5 Ways to Sell Insurance On Value Instead of Price
Posted by: Cornelia Winn
Any agent can sell insurance on price alone, but it takes a skilled agent to sell insurance on value. As an insurance agent, it’s important to connect with prospects on a deeper level and help them understand and internalize the value of the insurance they’re purchasing from you. Not sure where to start? Here are five tips you can implement today to help you get started selling insurance on value.
1. Explain the claims process
When prospects come to you for a quote, they’re focused on one thing: the price. But when prospects are only thinking of price, they’re overlooking the true value of the product and how it will benefit them. To shift the conversation toward value, explain the claims process to them. In doing so, you can help them recognize and internalize that their decision involves so much more than simply writing a check each month. Emphasize how the claims process works to guide them as smoothly as possible during trying times.
2. Compare insurance policies to their valuables
Ask any prospect why they bought their home, car or another valuable and you will seldom hear, “because it was the cheapest option.” That’s because people buy homes, cars and the like based on factors like great location or stellar fuel economy, respectively. Use this sentiment to shift how prospects think about the insurance they’re buying. This can help show prospects that purchasing a policy on price alone is akin to buying a dilapidated home in a questionable neighborhood because it was the cheapest.
3. Continually educate your prospects
Many prospects don’t understand how insurance works, which is why continuing to educate them in a way that is easy to understand is so important. Learning to explain how insurance works to your prospects in a way that is both effective and relatable without being condescending will ultimately help them see the value of your products.
4. Emphasize the potential cost of not purchasing a policy
It’s easy for prospects to see the value of insurance when presented with a hypothetical scenario. One way to do this is to contrast how much money they could save by not purchasing a policy with you by the potential cost of not purchasing it. For example, explain how a prospect could save $15 a month if they don’t purchase “x” policy — but what is the potential cost of sustaining lifelong injuries in an accident and not having this coverage?
5. Don’t apologize for policies’ prices
Put simply, you get what you pay for — and many times, quality products come with a higher price tag.