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How to Sell Insurance to Friends and Family

By  Senior Market Advisors  on August 28, 2019

Many people have that one friend who sells insurance and whenever that person comes around they think, “Oh, no. Not this again.” You may think, “I don’t want to be that guy,” or you may not know how to sell insurance to friends and family. You might wonder why you should start selling to people you know. 

Why Should You Sell Insurance to Friends and Family?

Many insurance agents start with people they know before they sell to strangers. For one thing, selling to your loved ones beats cold calling. (With Medicare Advantage and Part D sales, you aren’t allowed to cold call anyway.) Your friends and family already know and love you, so you aren’t as likely to get yelled at or hung up on.

The worst thing that will happen is that your friends or family will say no. Most people don’t like to say “no” to their friends, so they may lead you on. They have the best intentions when they don’t give you a definitive answer, of course. The key to being successful selling insurance to your friends and family is to find a way to separate business relationships from personal ones.

The truth about working in sales is that you’ll hear “no” a lot. You have to develop thick skin. People will tell you many reasons why they don’t want to buy insurance and they may even get mad at you for pitching your product.

The difference between strangers and your friends is that you already have a rapport with your friends. If you can convince anyone to buy from you, it’s them, because they really don’t want to say no. 

How to Sell Insurance Plans to Friends and Family

Selling Insurance to Family | Medicare Plan Finder

Selling Insurance to Family | Medicare Plan Finder

Even though you’re already “in” with your friends and loved ones, you still have to be selective with who you talk to. Sales agents have the most success with people who are already looking for their products, and it’s no different when your pool of potential clients consists of your family and friends.

For example, don’t try to sell Medicare insurance to your 30-year-old nephew who doesn’t have any health issues. He may not qualify and he probably has health insurance through his employer. But if your aunt is going to celebrate her 65th birthday in two months and retire, try talking to her about health insurance. Explain that her IEP is coming up and that you want to help her find the right coverage for her individual lifestyle and budget needs.

Let’s say your aunt agrees to meet with you and talk about her Medicare coverage. You’ll have to do a few things in your meeting to set “agent” you apart from “family member” you.

    1. Dress professionally. Act like you’re going to a job interview rather than meeting someone you’ve known your whole life.
    2. You have to establish yourself as an expert in your product. You must answer any questions she has accurately and confidently. 
    3. Try to pretend that this is the first time meeting your aunt. You may have seen her once a week for family dinners your entire life, but this conversation is different. You can return to normal after your meeting.
    4. Keep the small talk minimal. Don’t let the conversation stray to family vacations you took as a kid. Focus on the task at hand.

If you can do those things, you’ll have far more success selling insurance to family members than if you try to keep your relationship the same. 

Learn How to Read People

Your prospects will tell you everything you need to know without saying a word. How? Their body language. As an agent, watching for cues will get you a lot further than playing 20 questions. Of course you still have to ask questions, but your prospect’s body language can lead you to ask the right questions. 

For example, let’s say you’re meeting with a client for the first time. You mention a policy that seems to meet your client’s needs, but all of a sudden the client cringes when you say the premium. You should immediately switch gears and mention policies with similar benefits but lower premiums. You have to think on your feet to meet your client’s needs.

Get a Second Meeting

As soon as you start your first meeting with your friend or family member, your goal should be to get a second meeting. You can gauge your success by your clients’ willingness to talk to you about business. Close your first meeting by scheduling your second meeting.

Remember: Even your friends and family will still reject your pitches. You have to be OK with that. You may get a lot more “no” answers than “yes” answers. Sales is a numbers game. If you get knocked down, stand up, dust yourself off and move on to the next potential customer.

How to Sell Medicare Insurance

The first step to selling Medicare plans to your friends and family is getting licensed and certified. Once you’ve completed AHIP and carrier certifications you can start selling. 

The second step is to find leads. In the case of selling to your loved ones, you can start by reaching out to people you know qualify for Medicare. Ask them if they’re happy with their coverage and what they need in an insurance plan. 

Original Medicare doesn’t cover everything. Before you meet with your loved one, have the person fill out a Scope of Appointment (SOA) form. Find out if your potential clients want additional benefits such as fitness classes or vision coverage or if they need help with financial items such as coinsurance. If they want more covered services, suggest Medicare Advantage plans that suit their needs. If they need help covering coinsurance and copays, recommend Medicare Supplements

Don’t focus on how much commission you can earn. Focus on meeting the client’s needs. You will make money if you put your client first.

How to Sell Life Insurance to Friends and Family

The first step in selling life insurance is to get the proper licensing. You have to know the ins and outs of life insurance before your first meeting. If you don’t ask the right questions and read body language, you will fail. 

With life insurance sales, your questions will be geared toward the client’s finances and what he or she needs to meet financial obligations if an income stream stops. You’ll be recommending products based on those needs.

What to Do If You Really Don’t Want to Sell Insurance to Friends and Family

Agent Calling Consumer Leads | Senior Market Advisors

Agent Calling Consumer Leads | Senior Market Advisors

If you really don’t want to sell to friends and family, you have a couple of options to find leads. 

One is buying consumer leads. Just be aware that when you purchase consumer leads, you have to compete with every other agent who just bought the same leads. So you’ll have to rely on your skills to make you stand apart from the pool of salespeople who will be contacting your new leads.

The other option is partnering with a FMO (field marketing organization). A great FMO will provide effective marketing services to generate leads for you. Your FMO should make your job easier by doing the legwork to bring people to you.

Sell Insurance With Senior Market Advisors

Senior Market Advisors (SMA) is a FMO dedicated to helping agents succeed. When you contract with us, will receive extensive training on how to sell insurance, whether it’s Medicare plans or ancillary products

Our sales and marketing team is experienced in generating leads so you’ll have new prospects when you expand your customer base beyond friends and family. You’ll get free access to our proprietary CRM so you can manage new and old relationships alike. 

We partner with all of the major Medicare and life insurance carriers so you can give your clients unbiased options. Ready to start? eContract with us today.