Why is life insurance so hard to sell?

Asked by: Jairo Fay IV  |  Last update: September 21, 2025
Score: 4.3/5 (45 votes)

It's hard to sell because it deals with the topic of death. That's something many people find difficult to consider or discuss.

Is it hard to make money selling life insurance?

In summary, selling life and health insurance can be lucrative, especially for those who are skilled in sales, understand the market, and are willing to invest time in building their business. However, success often requires hard work, dedication, and a strategic approach to client acquisition and retention.

Is life insurance the hardest thing to sell?

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.

How much can you sell a $100,000 life insurance policy for?

Just like any other insurance policy, a life settlement payout for a $100,000 whole life policy would depend on your age, health condition, and policy premiums. A typical life settlement is worth around 20% of your policy value, but can range from 10-25%.

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.

Heated Debate Between Whole Life Agent and Dave Ramsey

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What is the success rate of selling life insurance?

More than 90% of new agents quit the business within the first year. The rate increases to greater than 95% when extended to five years.

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.

Can you become a millionaire selling life insurance?

If you have a great work ethic and are willing to place yourself out there to establish relationships with clients, you will get more opportunities to earn a higher income. Selling insurance may even make you a millionaire.

What disqualifies life insurance payout?

Life insurance proceeds can be denied. Some denials are legitimate, like in case of policy lapses, material misrepresentations, or exclusions in the form of illegal activities or war. In other cases, bad-faith insurers use elaborate methods to reject claims so they do not have to pay the proceeds.

What is the cash value of a $150,000 life insurance policy?

If you sell a $150,000 life insurance policy through the life settlement process, you can expect to receive anywhere between $60,000 and $105,000, depending on the specifics of your offer amount.

What is the hardest type of insurance to sell?

Life insurance is the most profitable—and the hardest—type of insurance to sell.

Why millionaires are buying life insurance?

Life insurance purchased by wealthy people and businesses is often used as a vehicle for providing liquidity, reducing financial liabilities, and reducing their tax profile.

How to sell life insurance like a pro?

Follow These Tips and Find Out How to Sell Life Insurance Successfully
  1. Know Your Product. As a life insurance agent, knowing your product inside out is critical. ...
  2. Personalize Your Pitch. ...
  3. Leverage Verified Leads. ...
  4. Build Trust with Prospects. ...
  5. Use Digital Marketing Strategies. ...
  6. Overcoming Objections. ...
  7. The Art of Closing.

Why is selling insurance so hard?

The hardest part of being an insurance agent often revolves around the constant need for lead generation and sales. Many agents struggle with the cold calling aspect, where rejection is frequent, and maintaining a steady stream of new clients can be challenging.

Can you make 6 figures selling life insurance?

How Much Money Can You Make Selling Life Insurance? Annual income for a life insurance agent can vary from as little as $28,000 per year to as much as $125,000 per year.

Why did I quit being an 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 do insurance companies never pay out?

Life insurance may not pay out if the policy expires, premiums aren't paid, or there are false statements on the application. Other reasons include death from illegal activities, suicide, or homicide, with insurers investigating claims thoroughly.

Why are felons denied life insurance?

People who were incarcerated are normally considered high-risk liabilities. For that reason, many insurance carriers are hesitant to take on such policyholders as clients. However, each insurance company assesses risk differently.

What percentage of life insurance never pays out?

Term life insurance payout statistics

99% of all term policies never pay out a claim. This is due to most people letting their policies lapse.

Is selling life insurance a good hustle?

In our opinion, it doesn't hurt that insurance is a lucrative business. You can gain commissions on the plans that you sell, so it's entirely up to you how much you want to hustle. You can also make more money with consistent renewals, so it pays in the long run to have loyal clients.

What are the cons of being an insurance agent?

Cons of working in insurance sales

For some people, the thought of earning commissions is appealing. For others, it can cause stress and worry about their future financial situation. New insurance agents often work long hours to build and strengthen relationships and get their names out in the industry.

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.

Which insurance license makes the most money?

The Top Five Highest-Paying Insurance Career Jobs In 2024
  • Insurance Agent.
  • Insurance Underwriter.
  • Actuary.
  • Personal Finance Advisors.
  • Claims Adjusters, Appraisers, Examiners, and Investigators.

Is it stressful to be an insurance agent?

Insurance agents often face pressure to achieve their goals while simultaneously providing exceptional customer service, meeting sales quotas, and staying abreast of industry regulations. This, combined with the responsibility of safeguarding clients' financial well-being, can make for a stressful work environment.

What is the average commission for 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.