How Hard Is It to Sell Insurance | 6 Reasons Why It is Hard to Sell Insurance

Are you thinking of a career in insurance sales? Are you worried about how hard it is to sell insurance? We’ll explain why selling insurance is so difficult in this article. This is quite important for people currently battling in the insurance industry. It’s also applicable to people considering acquiring their insurance license but are unsure whether this is the right field for them. Let’s find out how hard is it to sell insurance.

Furthermore, selling insurance is a challenging way for some individuals to earn a livelihood and an even more complicated way to maintain a successful, long-term career. The challenges that new insurance agents face are many.

Typically, the remuneration is based on commission. It’s notoriously tough to find eligible consumers on your own, and the few leads your firm provides you, if any, have frequently been contacted by hundreds of agents. Thus, the highlight below will intimate you more:

How Hard Is It to Sell Insurance?

How Hard Is It to Sell Insurance

How hard is it to sell insurance it’s quite hard to sell insurance due to the following reasons?

Pay depending on commissions

Agents are classified as contractors by many life insurance firms. They don’t pay basic wages or provide perks. This implies that an agent may work a whole week but will not be paid if no sales are recorded on the books.

The merit of not being categorized as an employee is that you may create your schedule, and the corporation cannot compel you to work certain hours. However, if you want to make a good living in insurance sales, you’ll need to put in a lot of hours, especially in the beginning.

A few firms offer employee status, with a minimal basic wage and perks. These businesses impose strict output targets on their agents. If you miss your monthly sales goal more than once or twice, you may get fired.

Obtaining customers

It might be tough to find suitable insurance prospects. Even when using the internet to your advantage, excellent leads are difficult to come by. Online lead providers abound.

However, most of their leads are nonexclusive, which means they get sold to several brokers. When you can find them, exclusive leads are pretty expensive. To break even with exclusive leads, your close rate, or the proportion of leads you sell, must be fantastic.

Employers that give leads nearly often need you to accept a reduced commission as a condition of employment.

For these circumstances, many life insurance salespeople rely on the old-fashioned methods of cold-calling and door-knocking to generate leads. Even in the twenty-first century, these tactics are still effective. However, becoming a successful insurance agent requires tenacity and thick skin.

The selling procedure

Don’t assume you’ll have an easy sale even if you’re presenting to the most qualified prospect. Life insurance, for example, is a product that is very tough to market.

Getting your prospect to realize and talk about the possibility that they will die is a difficult first step. When you get beyond that stumbling block, the next step is to create urgency, so they purchase immediately.

This is especially challenging since the product does not deliver immediate pleasure, and leaving a visit without signed documents almost often means you’ve lost that possibility for good.

The customer may be severe when they say they’ll think about it, but odds are they won’t think about it for more than five minutes after you leave.

A negative mentality

If you want to sell insurance without difficulties, you must start with the appropriate mentality. Having complete control is a beautiful thing. This should inspire those who strive to be great achievers in life.

You know you must go out there and give it your all if you want to have a chance at having a good life. Of course, when things don’t go as planned, we all get disheartened. That’s quite typical.

Here’s the truth: if you can’t accept that it’s totally up to you to create a livelihood and that you’re compensated based on results, don’t sell insurance!

Toll on the mind

You can’t predict how each insurance deal will turn out. The irony of insurance sales is that the successful insurance salesperson will be shouted at, told, “No, I’m not purchasing,” “I need to meditate about it,” or “speak to my pet rock,” and you will hear this 75 percent of the time.

The weird part is that the 25% of folks who purchase is what propels your business forward. Even if just one out of every four of your leads buys, you’ll be well on your way to six-figure revenue.

This is especially true if you’re selling insurance products like last expenditure, Medicare Advantage, or Annuities.

Become used to hearing “NO!” This is critical since most of the time, people will tell you “No.” Do you have a psychological understanding of what it’s like to get told no all the time?

You won’t comprehend it if you’ve never sold something before. It requires some getting accustomed to since you could wonder whether it’s personal at first. On the other hand, people have problems, and not everyone is a lead or a customer.

The importance of accountability

Everything is your responsibility is perhaps the most significant reason people fail in this company and why it is so difficult. You’re the one who’s in charge. You are solely responsible for the results of your company.

You are solely responsible for the data you enter. If you can’t do it, you’ll find yourself serving someone else and helping them get wealthy.

There are no other options available in this situation. You’ve reached a point in your career when you’re responsible for your achievements and failures. And it’s totally up to you what you do with either.

People fail in the insurance industry because they refuse to accept responsibility. Instead, they point at things such as insurance leads, commissions, their up line, and so on.

They turn themselves into victims, giving up their authority to escape the anguish of admitting full responsibility. Don’t let yourself become a victim. Many individuals fail in life and in selling insurance because of this.

Having the correct mindset might be the distinction between being trapped in a job you despise and never progressing and being able to move someplace and be your own master.

The insurance industry demands that you take responsibility for your excellent and poor circumstances. You will notice growth if you own and accept them.

You will see that you have the power to go beyond yourself and begin to achieve achievement. We all have flaws, difficulties, and disappointments. However, to go ahead, you must acknowledge your setbacks.

Take the unpleasant situations as a learning opportunity. What are the hassles, difficulties, and problems attempting to educate me? What can I learn from this to help me become better? That’s the attitude you’ll need to get through the difficult times.

Frequently Asked Questions

How hard is it to sell insurance?

The difficulty of selling insurance is based on the tips highlighted above.

Is it hard to make a living as an insurance agent?

A life insurance agent’s job is profitable, but it requires continual hustling, networking, and numerous rejections before a sale gets completed. Life insurance agents may get paid a little salary to begin, but they rely on commissions for most of their income.

Is selling insurance a good career choice?

Insurance sales are an attractive job option for persons moving into a new profession. Furthermore, many insurance companies desire but do not need a college diploma. Prior experience is also not necessary, unlike many other financial jobs.

Why is it so difficult to sell life insurance?

Agents are classified as independent contractors by the bulk of life insurance firms. They don’t pay basic wages or provide perks. This implies that an agent may work a whole week but not get paid if no sales are recorded on the books.

Is it possible to sell life insurance from home?

Yes, you can earn money selling life insurance from the comfort of your own home. Depending on the sort of life insurance you offer and the demands of your consumers, it’s a reasonably straightforward business. The main disadvantage of selling just term insurance is that most agents do not get a renewal commission.

How do you persuade clients to purchase insurance?

You may persuade a customer to purchase insurance in the following ways:

  • Don’t use scripts and be as natural as possible.
  • Inquire about the customers’ health.
  • When speaking with a customer, user names.
  • Demonstrate that your items are superior to those of your competition.
  • Continue to start new conversations.
  • Describe the customer’s good features.
  • Act on your feelings.

Is it possible to offer life insurance without having a license?

No. To solicit and sell life insurance, agents must get a certificate of authority or license from the Insurance Commission.


In conclusion, insurance stands as an excellent carrier path for many entrepreneurs today. And if you need more help on how hard it is to sell insurance, the tips above will aid you greatly.


Adam Grabois is an expert in all aspects of Insurance and Property with 20 years of experience. He is a licensed broker of all lines including property, casualty, life, and health. As a licensed adjuster, he is well-versed in all aspects of insurance, and he owns All Needs Insurance agency in Florida.

He attended Tufts University where he earned his undergraduate degree, followed by a Master's degree from Columbia University.

Adam shares his breadth of experience by helping many businesses and individuals manage risk and protect themselves financially. He now shares this with the audience of the "Pro Insurance Info" website.

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