Closing sales is where the rubber meets the road as an insurance salesperson, especially when it comes to closing insurance sales. However, employing closing approaches that do not alienate prospects is critical.
Customers queue to purchase the latest smartphones. However, people frequently postpone obtaining insurance for as long as feasible.
Unless a good insurance agent inspires people to act, their delay may be long-lasting.
“Closing the sale,” or encouraging individuals to buy insurance, is an important component of every agent’s employment. Millions of Americans will go through life unprepared for loss unless they are educated on their risk (and how to lessen it).
Everyone believes that the ability to close insurance transactions is vital. One alternative is to use closing techniques, which are often scripts that seek to convince prospects to buy.
Some are generations old, while others are more current. In either case, closing approaches can irritate younger consumers, who may prefer more of a problem-solving, collaborative sales style.
Using tactics and scripts on such purchasers can alienate them, resulting in their obtaining insurance directly from company websites rather than from you.
The alternative method to closing sales is to adopt ongoing tactics or behaviours, not prefabricated techniques. Two common techniques are “always be closing” and close through effective collaboration.
Only you can decide whether technique, strategy or a combination of both is ideal for you.
8 Closing Techniques for Insurance Sales
1. The Assumptive Close
Assume the person wants to buy the offered insurance once you finish your sales presentation.
“If everything still makes sense, shall we continue filling out the application?” you might ask. “A potential buyer may respond well to this close.
Others who are less prepared may object, believing you are “pushy,” so employ this strategy with caution. It also irritates younger buyers.
2. The Summary Close
This method works effectively with sophisticated insurance products that serve numerous functions.
How does it function? You go over the key features and benefits of the coverage before asking for the sale.
“As we just mentioned, this coverage reduces your risk of” (dying prematurely, living too long, getting sick, injuring a customer, etc.).
It accomplishes this by providing the following features: (tick off the main benefits). Are these still interesting? If that’s the case, should we start filling out the application?”
Don’t rehash your entire sales track with this strategy. Simply concentrate on the perks that seemed to resonate with the buyer. After you’ve finished summarising, move on to the conclusion.
3. The Now or Never Close
This strategy entails instilling a sense of urgency in the prospect of purchasing insurance while they are eligible.
When people fall ill, it is sometimes prohibitively expensive or hard to obtain insurance. The same is true for health and life insurance.
People will have missed their chance to purchase coverage by the time their need for it is urgent (due to illness).
4. The Soft Close
Inquire if prospects would buy insurance if it solved a key problem.
For example, in the case of life insurance, you may say, “Would you be interested if I could develop a means for you to pay down family debt after you die while simultaneously building an education fund for your child?”
If the person replies yes, go over how life insurance helps you attain the goals you specified. Then pivot to the closing by saying: “Do you see how this policy accomplishes what you mentioned you’d like to achieve? If that’s the case, should we start filling out the application?”
Also read: How Ezenwa Jeffrey Jamike Is Revolutionizing African Fashion In 2022
5. The Type of Person Close
If you suspect a prospect is ambitious, you could say something like, “There are two kinds of individuals in the world.
Those who want to enhance their financial chances and those who prefer to stay put. “What type of person are you?” If the customer describes themselves as ambitious, explain how your policy would help them improve their financial situation.
Then conclude by asking, “Based on your personality, does this policy increase your finances in the way that an ambitious person like you would prefer?”
Although “ambitious” is used in the preceding example, you could choose any type that appeals to your prospect.
This close works well when a customer is almost ready to buy but not quite. It’s also handy when you have a good psychological “read” on someone. Avoid employing this closing strategy if you are unsure of who you are working with.
6. The Either/Or Close
This has the advantage of making things easier for both you and the prospect. If you discussed two or three options for addressing a substantial need, you’d end by asking which option they preferred.
“For example, we talked about two basic ways to get the life insurance you need to safeguard your family: Purchasing term insurance to maximise the death benefit.
Alternatively, you might get a policy with a smaller death benefit but a higher savings component to start saving for retirement.
Would you favour the first or second approach?” This strategy not only keeps things simple, but it is also assumptive in nature. It assumes that either Option A or Option B must be implemented.
7. The Value Close
Many real estate agents nowadays still sell mainly on price. Price gains, however, are only transient. There will always be another agent willing to undercut your offer.
A superior strategy is to sell (and close) on value. You will be more likely to fend off price competition if you focus on the big-picture benefits of the policy and link them to the prospect’s ambitions.
To close based on value, say something like: “We’ve seen how this insurance coverage does X, Y and Z . . . all things you’ve told me you desire for you and your family. Does paying $XXX per month to get this fantastic deal still sound appealing to you? If so, shall we proceed with the paperwork?”
8. The Non-Close Close
Doing a good job of exposing needs through fact-finding and clearly discussing the benefits of a policy frequently sets the tone for the non-close close.
In other words, once you’ve identified a number of needs that insurance addresses, go over each product feature that addresses them.
Check to determine if your prospect knows how policy features relate to needs at the end of your presentation. Assuming you’ve completed your task, ask, “What do you think?” Prospects will typically close because they plainly see how the policy will benefit them.
If you want to develop a long-term career as an insurance agent, consider whether you want to concentrate on closing tactics, strategies, or both. Then, to reduce your liability risks, purchase a reasonable and comprehensive E&O policy from a reputable insurance provider.