Lessons from 43 Years in the Life Insurance Business

I recently retired after a 43-year career in the life insurance business. Looking back, I wanted to share some key insights with newer agents, hoping they find success in this rewarding field. My own career path has evolved significantly, and I want to share some of the elements that made me successful.

My Journey

My journey began at 23, fresh out of the University of Wisconsin-Madison, with no clients, and, critically, no salary! I started with Northwestern Mutual. In 2003, I transitioned to Kolb & Co., a locally owned CPA and advisory firm in southeastern Wisconsin. Later, we merged with Sikich, a top 25 CPA firm nationally, where I concluded my career as the partner-in-charge of the insurance services division.

What I had in February 1981, which I now recognize as crucial assets, included the following:

1. Strong Belief in Life Insurance: I firmly believed life insurance was the most critical coverage anyone could buy. What other product provides immediate cash at a discount when it’s most needed? What’s more critical to safeguarding a family or a business than insuring a human life?

2. Positive Attitude: Attitude, not aptitude, drives success. This business is a marathon, not a sprint. It’s a people business, and you want to never run out of names. Becoming a trusted advisor is earned, not given. It is up to you, as the agent, to invest in the relationship and become that trusted advisor. This is really important to success.

3. A Strategic Business Design: I chose to build my business using Al Granum’s “100 lives” approach. The goal was to convert prospects into long-term clients, fostering trust and enabling decades-long relationships. That is the key to success in this industry.

Building My Business

As agents grow in their careers, personal selling styles evolve. I believe that we each create a unique way of doing things – my own way which, for me, was focusing on writing at least 100 lives annually. I learned this from Al Granum and followed his system religiously; it clearly works. In my first year, I sold 120 lives.

I learned to rely on referrals only. I never made cold calls. This method may take longer, it has proven to be far more effective. I earned referrals from clients and centers of influence by delivering quality work. People will refer you if you ask!

You must do these things every day:

1. Stay Organized: Schedule a breakfast and lunch meeting daily. Try to meet with five to seven prospects each day, either in person or via Zoom. There’s nothing better than that face-to-face meeting. It is much harder to initiate a solid relationship with someone new over the computer.

2. Respond Quickly: When you receive referrals, contact them promptly. Delaying allows others to reach them first.

3. Cross-Sell: Open cases by conducting thorough fact-finding interviews. Insure parents and children for life insurance, and always discuss disability insurance for the primary earner. In business settings, insure owners and key people for both life and disability coverage.

4. Hire an Assistant: They can manage administrative tasks such as scheduling, client contact, and follow-ups, letting you focus on meeting with clients and prospects.

By writing 120 lives in my first year and following the suggestions above, my production soared. For 20 straight years at Northwestern Mutual, I wrote between 400 and 500 lives and led the field force in lives sold in 2003. It’s crucial to add new clients annually, without fail. Each year, I added 80 to 100 clients to build my network.

What I Wish I Knew Then

Now, I understand that people purchase life and disability insurance for emotional reasons, more than financial ones. New agents must become experts at fact-finding, as this is where the sales are made! The goal is to gently challenge the prospect, making them slightly uncomfortable. Identify the problem by asking questions such as “Would your family be financially secure if you died last night?” Find the problem, recognize it, and understand it so well that you can calculate the cost of inaction. Show your prospect that inaction will cost them dollars but action will cost them only pennies!

Be prepared for objections. I loved hearing objections, because I knew right then that the prospect was going to buy something from me, as there was a dialogue taking place.

The art of asking questions, particularly income protection questions, is critical. Pose questions like:

• “If you get sick or hurt, where will your family get income—relatives, friends, charity, or insurance? Which do you prefer?”
• “When you land in the hospital, what do you want me to send you — a get-well card or a check?”
• “If you become disabled and cannot work, do you have enough money coming in each month to pay your bills without tapping your invested assets?”

These questions create discomfort, but they highlight income protection importance and motivate prospects to make smart decisions.

Managing Objections

I believed that if I couldn’t earn a referral, I didn’t deserve to work with that person. Aim for 20 to 30 new referred leads weekly to build your network. Its important to create an environment where people want to refer you.

Here is how I handled objections:

• Use Tact: Avoid being aggressive, impatient, or angry.
• Show Genuine Interest: Express empathy in order to support your client’s needs.
• Tell a Story: Illustrative stories are powerful persuasion tools to illustrate a concepts.

When I was starting out, I also didn’t know about consumers’ perception of term insurance. People favored term insurance over permanent insurance when they wanted to “invest the difference.” Many term plans expire, and you will pay higher premiums when you are older and may not be insurable. The investment rarely happened as planned. However, I sold millions of dollars of term insurance over the years, and happily so, and over time, those policies were converted.

Key Lessons Along the Way

• Consistent Effort: I never experienced a sales slump because I made at least two sales weekly. If a slump occurred, I would keep working.
• Long-Term Focus: The best policy, in my opinion, is a permanent life policy.
• Client Relationships: Be persistent and spend time on relationships. Focus on the long term and stay positive.
• Client Appreciation: Always make clients feel valued.

I hope these insights provide newer agents with the motivation to work hard, protect clients, and genuinely enjoy this wonderful business. I’ve made a positive impact on thousands of lives, and you can too!

Steve Spector is a recently retired partner-in-charge of insurance services for Sikich. He has written $3 billion in death benefits on more than 15,000 lives in his 43-year career. Contact him at [email protected].