Why is it hard to sell life insurance?
Asked by: Melyna Nienow DVM | Last update: July 19, 2025Score: 4.9/5 (12 votes)
What is the hardest part of selling life insurance?
Life insurance is a very difficult product to sell. Simply getting your prospect to acknowledge and discuss the fact they are going to die is a hard first step. When and if you clear that hurdle, your next task is creating urgency so they buy right away.
How difficult is selling life insurance?
Life insurance salesmen have a reputation for being high-pressure and pushy because life insurance is one of the VERY HARDEST THINGS TO SELL. So if you're the best salesmen you've ever met, by all means, give it a shot. The rewards can be incredible. But if you're NOT, then I'd steer clear.
Why do most life insurance agents fail?
New life agents fail because of how life insurance commissions are paid. Life agents can receive up to 110% of a policies first year commission. This can lead to a high income but once you run out of your natural market it is hard to maintain that level of activity.
Why is selling insurance so hard?
Selling insurance is difficult for a number of reasons. Most of the time when people buy something it is tangible and they can see it in front of them where with insurance it is not. The buyer is purchasing something that covers risk which many do not believe they need to pay for until something goes wrong.
How Hard Is It In A Career Selling Life Insurance?
Is becoming a life insurance agent worth it?
The Bottom Line
Those who have a knack for selling life insurance, and the perseverance to grind through the tough early years, can make a lot of money and retire with a high degree of financial worth. However, life insurance agents, to be successful, must accept short-term pain in exchange for long-term gain.
How much do life insurance agents make per policy?
Typically, a life insurance agent receives anywhere from 30% to 90% of the amount paid for a policy (also known as the premium) by the client in the first year. In later years, the agent may receive anywhere from 3% to 10% of each year's premium, also known as "renewals" or "trailing commissions."
Why did I quit being a life insurance agent?
There's two big reasons why insurance agents quit: they don't feel valued, and they aren't given the technology they need to do their jobs well. In addition, managing commissions while hitting performance goals is a stressful part of the job for many insurance agents.
Why are insurance agents so rich?
One of the primary reasons insurance agents can accumulate wealth is their commission-based income structure. Unlike salaried employees, agents earn a percentage of the premiums they sell to clients. As they build a client base and generate more sales, their income potential increases.
What is the biggest insurance company to fail?
Executive Life Insurance Company is regarded to be the biggest bankruptcy of an insurance company in the United States in the course of recent years. Based in California, the life company had to file for bankruptcy in 1991 following disastrous investments in junk bonds.
Can selling life insurance be a side hustle?
Earn Supplemental Income
Looking to make some extra cash on the side? Now's the perfect time to start selling insurance! While we would never recommend going into any profession solely for the money, some people do enjoy earning something a little extra on top of their primary income.
What is the most lucrative insurance to sell?
Life insurance is the most profitable—and the hardest—type of insurance to sell. With the highest premiums and the longest-running contract, it brings in cash over a long period of time. In the first year, agents make the largest annual sum on a policy, bringing in anywhere from 40–120% of the policy premium.
How to successfully sell life insurance?
- GET TO KNOW YOUR CLIENT. ...
- PERSONALIZE YOUR PRESENTATION. ...
- TURN OBJECTIONS INTO SELLING OPPORTUNITIES. ...
- USE VISUALS. ...
- ASK YOUR CLIENT QUESTIONS. ...
- HELP THEM SOLVE A PROBLEM. ...
- INCLUDE COMPETITORS. ...
- CREATE A REPORT YOUR CLIENT CAN KEEP.
How fast can you make money selling life insurance?
Most businesses don't make any profit in their first year of operating. It could take anywhere from 18 to 24 months for your insurance sales to actually provide profit. Don't feel discouraged. Every small business owner has to clear this hurdle.
What type of life insurance pays highest commission?
Commission rates for whole and universal life insurance plans are often significantly higher than those for term life policies. Agents, however, must ensure that their clients are able to meet premium payments.
Who is the greatest life insurance salesman?
Ben Feldman (September 7, 1912 – November 7, 1993) was an American businessman and one of the most prolific salespeople in history. As early as 1979, Feldman had sold more life insurance than anyone in history.
Who is the richest insurance agents?
- Berkshire Hathaway's, Warren Buffet. ...
- Patrick Ryan of the Ryan Specialty Group. ...
- Erie Indemnity Chairman, Thomas Hagen. ...
- W.R. Berkley's William R. ...
- Mark and Robyn Jones of Goosehead Insurance. ...
- Brown & Brown's, J. ...
- Mercury General's, George Joseph. ...
- Henry Engelhardt of the Admiral Group.
How many policies does an insurance agent sell per month?
How many policies does an insurance agent sell? According to the financial reports, the Official Number is 2.5 policies per month. However, many people just do it part-time.
What are the cons of being an insurance agent?
- Unpredictable income. Working in a commission-based role has its drawbacks. ...
- High-pressure work environment. Selling insurance can be stressful. ...
- Finding new leads can be challenging. ...
- Limited paid time off. ...
- Experiencing a lot of rejection.
How many people fail at selling life insurance?
A more accurate statement is that 93% of agents choose to leave within three years.
How many hours does the average life insurance agent work?
New agents do not have set hours, you plan your own schedule and you will be working 40+ a week. Depends on how well you manage your time.
What is the average age of a life insurance agent?
Insurance agents make on average $51,936 per year. The average age of an Employed insurance agent is 45.9 years old.
How do life insurance agents get clients?
- Blog posts.
- Webinars.
- Professional partnerships.
- Client referrals.
- Google My Business.
- Paid ads.
What is the commission on whole life insurance?
Commission structures vary by policy and company. But typically, life insurance agents receive as commission 60% to 80% of the premiums you pay in the first year. They collect smaller commissions in subsequent years. Added up, 5% to 10% of all the premiums you pay over the life of the policy could go to commissions.
Are life insurance agents in demand?
Job Outlook
Employment of insurance sales agents is projected to grow 6 percent from 2023 to 2033, faster than the average for all occupations. About 47,100 openings for insurance sales agents are projected each year, on average, over the decade.