How to Sell Term Insurance

Term insurance provides basic life insurance for families.  If you are an insurance broker and are interested in selling term insurance to your clients, there are a few steps that you can take to familiarize yourself with this type of insurance and make it marketable for your clients.

1. Analyze your client's needs and goals.  Take the time to meet with your client and learn about their insurance needs.  They may need life insurance as part of their business plan, or they may need an insurance plan to support their family in case of their passing.  It is important to learn about their personal and financial needs and goals before you suggest any certain insurance plan.


2. Complete a fact-finding form.  After speaking to your client and learning about his or her specific needs, you should fill out a fact-finding form.  This form will help you determine whether or not term insurance is appropriate for your client, or whether they need a permanent form of insurance.  The form will assess you client's assets, liabilities and debt.  Term life insurance is most appropriate for people who only have a temporary need for insurance.  This is typically for those people who will have enough money in savings by retirement age so that they will not need life insurance.


3. Determine which type of term policy suits your client's needs best.  There are two types of term insurance.  The first type is an annual renewable term.  This policy renews every year and is most appropriate for those who only need temporary insurance, as the policy premium increases every year.  The second option is a level term insurance plan, which has a guaranteed premium for up to 30 years.  The second option is a more affordable, long-term option.


4. Assist your client in completing their insurance application.  You will need your client's full name, address, Social Security number, driver's license number and employment information.  Your client will also need to complete a health questionnaire.  All of this information combined will be used by the insurance company to determine whether or not your client qualifies for the life insurance plan.