Life Insurance Selling Guide-English

www.verticalprogress.net

Introduction:

Life Insurance Industry in India has faced frequent

changes so far. Each time the Central Government Authority for

Insurance IRDA (Insurance Regulatory and Development

Authority) is doing the changes only for the benefit of the policy

holders. Because of these reviews and changes, the Life

Insurance Business in India is becoming more clear and attractive

to all. We need to fix one thing strongly in our mind that “all is

for good”.

Life Insurance is a basic need of each human who has

someone depending on them. You are earning money by

designing and recommending such most important financial

plans to your customers.

Many joined along with us as Life Insurance Agents. After

few months few of them are vanished from this business. After

few years, most of them are not in this business. But, only few

continue to do this business in a successful way. This is a very sad

situation. Only if we have more Insurance Agents, our country

will have better future.

You may wonder why I have mentioned that our

country’s future will be better by having more insurance agents

and insurance selling professionals.

An Individual’s financial stability is his financial freedom.

He/she or their dependants should not depend on any others or

government for financial subsidiary at any situation. In other

words, having sufficient money for the basic survival


requirement of self and dependents is called financial stability.

For an example, if a family’s monthly survival expense is

Rs.10000/-, then the primary earning person should have a

provision to ensure this Rs.10000/- is guaranteed even after the

death of him.

We need to have a deposit of Rs.12 lakhs if we want to

receive Rs.10000/- per month as interest. Accumulating this 12

Lakhs will sure take many years for a middle class family. But the

same time, we can not give any guarantee for the survival of that

primary earning member till he accumulates this corpus of 12

lakhs. If he/she wants to by an asset worth 12 lakhs immediately,

the only economical and easy solution is to buy a life insurance

policy for the sum assured of Rs.12 lakhs. From his income, if the

primary earning member is ready to pay Rs.3500/-

approximately, he can get life insurance cover of Rs.10 lakhs on

normal death and 20 lakhs on accidental death.

If each individual takes the financial protection like this

for them and their dependants, the number of people depending

on government’s subsidy will be very less and hence the saved

subsidy money will be strengthening the government to go for

development projects. As present, our country is spending a

huge portion of revenue on subsidies and hence we don’t have

enough funds for development projects like infrastructure

development, industrial development, education, medicine and

research and development.

I hope, now you can buy my point that by developing

more and more insurance agents and insurance selling


professionals, we can financially protect each family and thus we

can help the nation to have financial stability.

I am writing this book for the past 3 years in between my

official work. The main reason to write this book is to do

something to retain people who eagerly join this industry and we

are helping the nation by retaining more agents and sales

professionals of life insurance industry.

With my experience of 15 years in Sales and Management

and in those 7 years in Life Insurance Management, I have

written this book and submitting in front of you.

Whatever the job we start, initially we need to follow the

successful people. After the adequate experience, we may form

our own strategies and succeed. If we want an assured success,

we just need to copy the successful people. This is the prime

secret of success. Just think how a child is copying its parents and

growing faster.

Instead of treating this profession as an opportunity for

another income, we should believe that we have the power to

change our nation’s future. If we do this profession with fullest

involvement, I am sure we can create a bright future for us and

for our country.

Another important reason for me to write this book is

there. I have seen many Agents and Professionals who had

extraordinary knowledge and profile have failed in Life

Insurance. This is a painful fact. Behind each failure of an agent, a

good amount of effort of the Sales Manger who recruited


him/her is just wasted. To reduce the number of dropout agents,

I feel we need to educate them to understand clearly about the

nature of this job rather looking only on to the rosy pictures.

The concepts and strategies mentioned in this book are

only the outcome of my little knowledge and experience. If you

find any mistake or misrepresentation in this book, kindly abide.

With regards,

V. Prasanna Venkatesan,

Vertical Progress.


Index

1. Let us be proud.

2. Income opportunity in Life Insurance business.

3. Important Factors

4. Important of Training Classes

5. Information are the tools

6. Basic requirements

7. Approaching

8. Preparing

9. Fact Finding

10. Presentation

11. Objection Handling

12. Following

13. Sales Completion

14. After the sale



There are many professions in the world. We can classify

them into 3 categories.

1. Production from natural resources (like agriculture,

poultry and others)

2. Industrial production (manufacturing a pin to ship).

3. Service (providing service to an individual or

organization).

Among these three types of professions, service is

different profession with lesser investment and better profits.

Our Insurance Agent’s profession requires no financial

investment. The actual investment in this profession is our Time,

Contacts (friends, relatives and other known people) and our

Talent. This profession is profitable and attractive for Sales

Managers and other insurance selling professional also. From

this profession one can get enough money, satisfaction and

extraordinary contacts in the society.

Many of the world’s famous personalities had been as

insurance agents during their early days. Many top business

people, political leaders and celebrities have done this profession

in their early days.

The uniqueness of this profession is that we are selling


something very important to others. Right from a poor to rich,

uneducated to scholars who ever is earning money and have

people depending on them are sure need insurance. This

profession is a Noble Profession because we are helping the

insured and his entire family by providing the right financial

protection. Even if the family leader is dead, we ensure his

income is alive. In case of any accidental disability or critical

illness, we help him with adequate financial subsidy. In a house

where death occurred, friends will be there for a day. Close

relatives will be there for couple of days. After few days, people

to collect money will be there. The only person there to give

money will be a life insurance agent.

In Life Insurance profession, the relationship between us

and our customer will increase day by day depending upon our

service. We have the opportunity to get in touch with the

customer for a long period of time. Many successful agents who

were looked as a disturbance initially have become very close

family friends to customers by their proper service over a span of

time. The special key in this business is Long Term Relationship.

Where ever our customer is going to live, while receiving

a maturity from the plan we offered, he will remember us with

gratitude at least for a moment. While we give the claim amount

to the nominee, we will become another member of their family

and also we will get good references without asking them. A

successful agent of life insurance will sure accept this point.

In Tamilnadu near Tanjore, one gentleman was working

as a supervisor for a factory. He met with an accident and dead


on the spot. Some one earlier has compelled him to take a policy

and he paid Rs.5000 as premium and availed Rs.2 lakhs as Sum

Assured. This gentleman has only a widow mother in his family.

Though this money 2 lakhs can not compensate the death of the

only son, it could have been a support for that old mother.

Just think now, the agent who insisted him to take policy

could have got a good reputation in that society after giving the

claim. There are thousands of examples like this. I have the

following reasons for me addressing this job as a Noble

Profession.

1. We sell only the most wanted scheme.

2. The insured person will have mental peace while living.

3. On the death of insured person, the money from insurance

will give financial protection to his dependents.

4. We are serving the customer throughout the policy term and

also while maturity or death.

5. More than anything, we give a helping hand while his family is

in trouble.

As we discussed earlier, a country’s financial stability

depends on the citizen’s financial stability. To get the financial

stability and protection, the only affordable and immediate

process is availing life insurance.

A country which has more citizens under the life

insurance protection, will grow strongly on economy. So, we are


not only helping the individuals we know, but also the nation.

Now you can understand why I addressed this profession as a

Noble Profession.

By selling genuine plans to customers, many agents are

serving their customers for a long period and getting more and

more business from them. By this strong and long relationship,

professional agents are becoming one of the family members of

customers. A genuine insurance agent will always have wealth,

health and prosperity.

But, among us, few people are thinking this profession is

a tough one. Agents and Sales Professionals who tried to sell life

insurance and left this business are the one who spreads wrong

message about life insurance business. This is completely against

the fact.

They could have gone out of this business only because of

their wrong approach towards this business. So, kindly don’t

believe any wrong information about this profession which is

there in the market.

According to me, the life insurance profession is an

honorable profession because we sell only the plans which are

necessary and mandatory.

But, if we want to do this profession in an appreciable

way, we must have business ethics and service mind. For an

example, we should keep our customer’s benefit as first priority

than ours. The information sought by our customer must be

given correctly. We should not miss or reject any telephonic call


of our customers. We should not do anything that hurts our

customer.

If we are like this only, we can get the credibility and

recommendations from our customers and do this job

successfully. If you want your customers to like you, you must be

honest and gentle.

No one exposes about their income, expenses, liabilities,

assets, details about their family member and their dreams to

every one. Only his important person and life insurance agent

will know all these things.



In Life Insurance there are some common formulas of

getting business.

If we approach 5 people for appointment, 1 will give

appointment. If we make sales presentation to 5 people, 1 will

give business within 1 month.

In general, premium per policy is Rs.15000/-. Now, after

regulatory changes, the average commission per policy is 8%.

(You should sell Traditional Policies also to maintain a healthy

income) Average commission per policy will be Rs.1200/-. If we

are getting a correct sale, the average premium paying term

would be 10 years. Average renewal commission is 2% per year.

According to these calculations, your income will be as below.

(Assuming you make 3 presentation each day)

(2nd

year only the renewal commission of 1st

year will come. 5th

year,

2,3, & 4th

year’s commission will come. Like this, if we do a genuine

0

5

10

15

20

25

30

1 2 3 4 5 6 7 8 9 10

9yrc

8yrc

7yrc

6yrc

5yrc

4yrc

3yrc

2yrc

1yrc

FYC


service, our income will grow with renewals and also by the reference

of existing satisfied customers.)

As we discussed earlier, if we approach 3 customers

everyday, monthly we will get 15 policies and Rs.18000 as

commission and subsequent renewal commissions will be

Rs.40500/-.

Just look the above diagram carefully, 5th year onwards,

your renewal commission will be more than the first year

commission of that particular year. This situation will be there if

you do the new business as equal to your 1st year business. In

fact, the real situation will be very different. If you do a genuine

business and service, your new business will be increasing each

year. The reasons are,

• Generally in the first time, the customer will give premium

much lesser than his actual capacity. If you continue to be

honest, the customer will not invest anywhere without your

knowledge.

• Initially you may not be an expert in this profession. After few

months, due to your experience, you will take only lesser

time than early days to complete a sale.

• Initially not many people know that you are an insurance agent

or insurance professional. Because of this, well known people

too take insurance with others. After few years, you will

become popular in your society as an Insurance Selling

Professional and the references will also be more.

• After enjoying the maturity or after getting the death claim,

your selling will become much easier with them. Most of the


customers are buying policy with the same agent after

getting a claim or decent maturity. If you don’t believe, ask

the senior agents. Their premium after one maturity will be

more than the previous premium.

• As you continue to be in Life Insurance business, you will

become expert in this profession and you would be taking

the right decision during the first meet itself. So, you will

understand the prospect clearly and get optimum premium.

• After few years your service will be faster. Because, you know

whom to contact for what kind of service from the company

and the required documents, time frame for processing the

policy request and so on. So, your service will be accurate

and faster. This quality will attract the prospects and you will

get more business in lesser time and more references.

Even with the equal time that you spent in your first year,

you would make more business and money latter on. As a

proverb says, “if you stay longer, the business will become a two

horse race”.

For an example, Mr. Prabhu is a Life Insurance Agent and

he hails from a small village. He is running a small medical shop

also. Like others he started this business without any big

expectation. He is doing this profession for the past 4 years and

during the past 2 years, he got more offer from the same

company to become a Sales Manager. He didn’t accept those

offers because now his customer base is more than 200.

After 1 more year, each year 40 policies that he took will

come under surrender without penalty clause and the fund value


also will be attractive. He would serve all the surrender or

maturity and get more business each year without meeting any

new customers.

Moreover, his renewal commission is higher than the

salary of a Sales Manager now. There is under no pressure and

reporting mandates as Sales Managers have. Agents who are

above 5 years with decent business each year, never bothered

about a regular income provision because we get salary once in a

month. But, Life Insurance Agent’s commission is twice in a

month.


Patience

Passion

Integrity

Trying Hard

Working everyday

Will to learn


LIMRA is a globally known organization which conducts

various study and research on Life Insurance business. They

studied the reason for the people leaving this profession early.

The outcome of the research is, “People failed because they

don’t know what to do”.

Friends, we need to understand one thing here. All of us

have started this profession with the aim of growing further in

life. But, without understanding and practicing our

responsibilities and duties, it is mere waste to blame others or

the industry. Unless we understand the profession and do our

duties, we cannot become successful in any profession.

Start with well known people:

Selling life insurance is fulfilled after discussion with

involvement. I am mentioning this here is because selling life

insurance plans to unknown people is difficult initially. The

reason is there will be initial discouragement if close people are

not approached and that should not spoil our morale. In the

beginning of your career with life insurance, do it with your well

known people only. So, it is very important to have contacts. We

should have good relationship with them. We should keep their

benefits first. We need to speak nicely. We need to introduce

quickly to everyone that we are into this profession. Smiling,

patience, knowledge, way of approaching and hard work are the


factors need to be there with us.

More Contacts More Benefit:

As we saw in the first topic, this business requires few

investments like time, contact, speaking skill and knowledge.

Among these, contact plays a major role on our success here.

Please take a pen and few papers. Just answer the following

questions. 1. How many people you know? 2. How many of them

are earning more than Rs.5000/- per month? If your answer for

the second question is above 200, you are the right person to do

this job. If it is above 100 and less than 200, you need to get

introduced to minimum 3 new persons each day. If it is less than

100, get introduced to minimum 5 persons per day. To get a

regular and continuous income from this business, you must

have minimum 100 prospects in working platform.

In present mechanical life, we don’t know even about our

neighbors. First, learn to smile. Among us, what fetches success

to someone? It is only due to the friend circle we have. If we

don’t have more known people, doing this job will not be easy.

But, you know well that creating friendship is not a tough task. If

you want a specific group or people to be your friend, be there in

places they gather. Become a member of social clubs like Lions

Club, JCI and Rotary Club and so on.

Now, I will introduce one life insurance agent. Her name

is Mrs. Usha. She was living in a city with a middle class status

during 2003. I will explain the process of making her agent,

efforts taken for that and also the result of that. Her Sales

Manager (Development Officer) approached her to become a life


insurance agent. She is introduced by another person to the

Sales Manager. After the business opportunity presentation, she

told him that she would convey her decision latter.

The reason for her hesitation is she was not confident of

doing this profession. But, she wanted money because they had

insufficient income. She stayed in a rented house with her family.

Her husband was working in a shop and she had two school

going children. She had many contacts from her neighbors,

relatives and her husband’s buyers and dealers.

She was living a comfortable life. But, she knew that she

requires lot of money for future. She was selling bags to school

going children and office goers by meeting the customers at their

work places.

To make her as an agent, the Sales Manager took lot of

efforts. He visited her house 12 times and discussed with her and

her husband about this profession. Finally on the 12th visit, she

accepted to become an agent.

There was only few days left before the training session

starts. She has to undergo an interview with the branch manager

to get selected. The Sales Manager arranged for the interview

and on the day of the interview she refused to take up this

opportunity.

She was well informed about the interview and required

documents like certificates, resume and prospect list. But, she

just refused to join and the reason was not also told to the sales

manager.


The sales manager really became upset. After enquiring

few times with her, she told the reason. That was shocking. The

reason was she informed about her new assignment to the milk

vendor and a neighbor. They discouraged her by telling it is very

tough and lot of traveling need to be made. Finally, the sales

manager could manage to make her an agent.

What we can understand from this case study?

• Not everyone will encourage us.

• Before we start, the faith of our Sales Manager or Development

officer is better than other’s opinion.

• The barrier is our hesitation.

As we said, “More Contact More Money.” After joining, she

developed more contacts and became the top insurance agent

soon. She utilized all possible ways of gathering contacts and

became a role model agent.

Work Everyday:

What the top sportsmen are doing? Do they practice

every day or few days before the event?

We can become expert in any job by doing that everyday.

To get a permanent success in life insurance business, the only

way is to work everyday. Once in an interview, the national top

performing agent of a life insurance company told, “I will not

have my breakfast unless I confirm 5 appointments for that day”.

This is the secret of success.


“Everyday” is a magical word for all life insurance agents

and selling professionals. Even if we are doing this as a part time

job, we should discuss with at least one person everyday. People

not doing this have not achieved anything remarkable here. This

is a highly profitable business without investment. Our

investment is our talent, speaking ability, contacts and presence

of mind. So, everyday practicing in this business is very essential.

Any artist without daily practice might have not become a star.

We don’t need to spend long hours to this business

everyday. But, we must dedicate at least our possible minimal

time to this business everyday.

Recording what we did:

Now you could have understood the importance of

working everyday. But, we should also record what we do every

day. Whom we met? What was his/her interest? Which plan we

suggested? What was the objection? When to meet next time?

What are all the proofs we need to show? All these information

are vital for the next visit.

Only by proper recording of all the information of what

we did, we can continue further successfully. Otherwise, we will

be in a position of a person who saw a movie till the interval and

the second half of yet another movie starred by the same hero

and heroine.

We can see this habit among all our successful senior

agents. End of each day the approaches we made, presentation

we made, submitted proposals and it’s details, premium paid,


policy term, premium paying term and other important details

are to be recorded on that day itself. If we want to enjoy the

fullest benefit of our efforts, we should not forget anything we

did. So, inculcate the habit of writing diary. It would be better if

we have a separate diary for insurance business. Keep another

quality note book and maintain all the details of your customers

there. If we want to do a better service to our customer, we

must have all the data readily available at any time with us.

What ever the format of keeping the record is convenient

to you, keep like that. By keeping like this, you can calculate and

follow your own benefits like commission, renewal commission

and other contest benefits also.

Hesitation is the barrier:

In this profession, our hesitation is the biggest barrier. No

door opens unless knocked.

Hesitation to start the business due to lack of knowledge

about this profession is the main barrier for us. In India, many

business giants like TATA, Birla, Bajaj, Ambani are all invested

huge money in this business only after seeing an opportunity to

make big money. Then why we need to hesitate?

We are not confident to the extent our Development

Officer is confident on us. All Development Officers are in need

of recruiting new agents. But, they are not recruiting everyone.

They will recruit only people with some stuff and quality. You are

one among them.

Hesitation will not come if we are aware that we are


selling only the most important and required plans to our

customers. Your customer may be an expert in his business or

profession. But, if you have undergone a proper training, he may

not have better knowledge than you about life insurance and

financial planning. Please strongly believe this.

In my little experience, I have met many doctors,

engineers, government officers and business people and

explained about financial planning. Most of them have accepted

my recommendations about life insurance plans. So, you have

confidence on you, get better knowledge through training

sessions and gain more and more experience by presentations.

Your hesitation will run away.

To get this level of confidence it may take few months.

Till such time, take your higher official along with you. The

practical experience will teach you what you have left to learn in

your classroom.

Normally, we don’t believe that Life Insurance is very

important to all. Because of that, we don’t confidently speak to

even our well known people. Believe that life insurance is very

important to all and they are not aware of that. Our basic

responsibility is to educate them about the importance of Life

Insurance. We are hesitating to speak about this.

In 2004, my agent took me to a Spice Processing Mill

owner to present about life insurance. We were waiting in the

customer’s office for about one and a half an hours. After

becoming free, he permitted us to present. We explained about

our plans in detail. After listening patiently, he asked his staff to


pick the insurance file. He showed me a bunch of policies worth

30 lakhs of sum assured already having and he was paying Rs.

1.75 lakhs as yearly premium. Here there is virtually no hope of a

new policy because we were not close to him. We went there

with a reference only. I appreciated him for already having life

insurance policies and paying good amount of premium. I

politely requested a permission from him to do a need analysis.

He also accepted since we promised him that we would not force

him to take a policy with us unless there is a need. I did a sincere

study of him and did a need analysis based on human life value

calculation. Finally we agreed that by having a life insurance

cover of 1.5 crores, he could provide a complete financial

protection to his business and family. After our discussion, in few

weeks he took a policy in which the sum assured was 1.25 crores

and the premium was 1.25 lakhs.

I discussed with him that what ever happens to him, his

business and family should not get disturbed. He was doing a

spice processing and reselling business. He was purchasing from

few bulk suppliers and after processing supplying to hundreds of

retailers. His buyers are across the state and he does many

transactions over phone.

In case of any eventuality, his suppliers will stand in line

to collect the money and not all the retailers will pay without

further supply. His employee’s salary must be paid irrespective of

production or profit. Otherwise they would go out and their real

asset is the skilled labors. The next person to takeover the

business is his wife since his children are very young. So I

calculated all these factors and projected such huge sum assured


to him. You must be able to make your prospect to see things

that may happen to get a good sale.

We need to present in a polite way that our customer is

not getting irritated. Just observe your mind status and

confidence level. I hope that is increased by now. I will be

explaining latter about designing a financial solution for different

type of customers.

Once again, believe that Life Insurance plan is very

important to all.

Be Honest:

Why should we keep the customer’s benefit as prime

focus? The reason is natural. If the agent’s commission is more,

the customer’s Benefit would be less. If you are recommending

a plan which benefits you more, you can not succeed in this

business for a long time. Please stop committing the unavailable

features and giving wrong information about the policy and

features. Only the reputation we create will lead us in this

business for a long time.

If you think that there is no way to the customer to know

about the wrong selling, you are wrong. Sure the fact will come

to his knowledge one day. Just imagine, what will he think about

you if you have done a wrong sale? Whatever the earlier image

we have created over a period of time will be waste by a single

mistake. We should never sell a wrong policy by focusing higher

commission or due to lack of knowledge.

I sold a policy to a doctor. I gave maximum life cover to


him since he is the only earning person of his family and he has

two school going children. While he was about to pay the third

year’s premium, I was working in a different place after my

transfer. That time yet another agent met him and asked for a

policy.

But, the doctor told him that he is already having a policy

from the same company and the renewal is also due then. The

agent enquired about the policy and checked the fund value also

as it was ULIP plan.

He found that I gave maximum insurance cover and due

to the higher insurance cover, higher mortality charges were

taken. The agent rushed to the doctor and told him that he is

cheated by me and showed him the mortality charges taken each

month. He also added that all the mortality charges taken could

have come to me as commission. In fact I was not an agent and

his statement that mortality charges are given as commission

was also absolutely false. He recommended another policy to the

doctor showing minimal insurance cover of just 5 times of the

premium and explained about the mortality charges for “sum at

risk”.

The doctor got wild against me and he called me over my

mobile. I understood the situation and I explained him about the

conformation made while taking the policy. But the doctor was

not convinced. He asked me while there is a provision to take

sum assured for just 5 times of premium, why did I give him 40

times of premium. The plan I sold was a ULIP regular premium

plan. That had a flexibility of taking sum assured from 5 times of


annual premium to 40 times depending on the customer’s need

and interest.

Then I promised him to send a detailed mail about the

importance of Life Insurance and a proof stating the mortality

charges would not go as commission. I sent a detailed mail to

him. He took time to read it carefully and completely brought my

point and felt sorry for suspecting me. He rejected the proposal

of that agent. Even today the doctor is my friend.

What we understand from this case study? The agent

instead doing a need analysis, he started abusing the other agent

who sold in order to get good impression. This is a very wrong

way of selling. Particularly, that agent didn’t have proper

knowledge about financial planning through life insurance.

Otherwise, he should have appreciated taking higher sum

assured and gone for a cross selling. Finally, he didn’t get the

benefit and also unnecessarily created a friction between me and

the doctor.

• If we are honest in selling, we don’t need to fear anybody.

• Like this case study, if our prospect is already having a policy,

instead researching the existing one, we can look for more

opportunity to sell. As we discussed earlier with the case

study of a spice merchant, the opportunity will always be

there.

• The customer may call you at anytime. We must replay in a

responsible way.

• If your customer is angry with you. Just handle him with


patience. Any thing we do out of anger, we should feel sorry.

After you clarify him, he will sure accept you.

• If you create even single unsatisfied customer, that will spoil

credibility with many.

• Bad things spread faster than good.

The following points we discussed in this topic.

1. This profession can be done easily among our well known

people.

2. We need to keep in contact with as many people as possible.

3. We need to allocate time for this profession everyday.

4. We should record what we did everyday.

5. Continuous effort is the only way to success in this profession.

6. We need to have faith on this industry and profession.

7. We need to believe our higher officers and do as per their

guidance.

8. We need to strongly believe Life Insurance is important to all.

9. We need to work with honesty and responsibility.

Exercise:

1. Buy one long size, quality note book.

2. Name it as Prospect Database.


3. Draw the following table in the notebook and write the details

of the known people from whom you can get policies.

Minimum 200 names should be there while you start.

4. Add minimum 3 new names and details in that notebook

everyday.

5. Draw the following table in two pages starting from the left

page to right page.

6. Whatever the information you get about the prospect, write in

that notebook.

7. Write complete detail of the policy taken there.


You need to draw this table in a long size quality notebook by

keeping two nearby pages as one page. Draw from the left page

to right page and keep enough space for each prospect.

S. No Prospect’s name

address, contact

number and other

details

How do I

know him?

His Job or

business

1st meeting date 2nd meeting date 3rd meeting

date

Recommended

Plan

Proposal Form

submitted date

Premium Amount Premium

Frequency

Policy Date

Birth Days of

family members



As we discussed in the earlier topic, we came to know

that to do this job, the knowledge is very important. Moreover

this is not a product selling profession. We sell only the plan. We

should have the ability to clearly explain the plan and features.

To the questions asked by the prospects, we should give proper

answer quickly then only we can win the heart of our customers

and excel in our profession. The success secret of this profession

is to create a strong confidence on our prospect’s mind.

Insurance agents those who are continuously successful

will have a strong knowledge of this business and update of

information. Ask them the importance of training classes, they

will definitely recommend you to attend all the classes.

As I mentioned, Insurance Selling is an art. To perform

any art, we need strong knowledge and practice. If we do things

without proper practice, it will be as good as riding in a stallion

without proper training. We need to learn required things by

allocating time for that.

You may be confident to become expert by reading

books. But, have you ever seen a person swimming with book

knowledge? Have you ever seen a person performing classical

dancing with book knowledge? Few people might have learnt art

without proper practice. But, the time and effort they could have

spent would be huge. With proper teacher, we can learn any art


without mistakes faster. We can learn the techniques of the art

which he got out of his experience.

Once I made a study on advisors based on their

attendance in training programs. I found an interesting factor.

70% of regular training attendees are successful for more than

one year. On the other hand, only 30% of advisors who didn’t

attend training programs continued after 6 months from the

date of their joining. They also failed in the subsequent years. If

you want to do this profession for a long time, never miss any

training session.

Once, my sales manager brought one busy businessman

for interview. I discussed with him and found he has excellent

contacts in that city. He is a senior member of a reputed club

there too. But I found he was not attending training sessions

regularly. Often he went out of the classes. I feared that he

couldn’t pass the exam. The sales manager told me that he will

be free only in the morning and Sundays and committed me to

teach him on his free time. Somehow he passed the licensing

exam. He logged only one own policy in the date of coding and

after that he didn’t do anything. Due to lack of adequate

knowledge in this business, he never gave importance to this

business.

I met him in a party after few months and asked him why

he didn’t continue insurance business. The replay he gave was

shocking. He told that he was unable to do the business without

the help of his sales manager as he didn’t have any knowledge.

He blamed the sales manager that he promised him to support


fully and didn’t keep his words. Many of us blame others for our

failure. But the same time, if this agent could have attended the

classes properly, by this time he could have been a top

performing agent of that region itself.

There are many correspondence courses. Now the

information technology has grown to an amazing level. The

world has become very small. Through multimedia we can have a

live video chat with a person anywhere in the globe. But, why

there is no correspondence course for medical practitioners? The

reason is medicine directly impacts a life. Medical practitioner

dose a treatment for disease of that time. But, an insurance

agent gives solution for the future till death. Now you can

understand to what extent our profession is important and what

sort of a role we are playing in our customer’s future. So, for life

insurance profession, the physical training classes are very

important.

An agent I have mentioned before, Mrs. Usha, attended

all the training programs regularly. She didn’t miss even a small

training program. Because of this, after three months she used

to take the help of her higher official only for HNI (High Net-

worth Individuals) calls. She started procuring all small premiums

up to Rs.25000 on her own. Since she got on the job and off the

job training properly, the time was at her disposal and she was

not waiting for the sales manager’s availability. This increased

her productivity. Many months, she was doing as good as a sales

team’s business. She strictly followed all the instructions

(including the above mentioned table) given in the training

programs.


Another agent, Mr. Karthikkumar, aged only 24. He was

working in Chennai in a private concern. He took 15 days leave to

attend the training sessions for licensing exam. As he learned this

business clearly, from the day one he started maintaining the

data properly in a very attractive format. From the date of

joining, he was continuously becoming a company club member.

Each year, he used to rank one among top 5 in number of

policies done.

In am in life insurance industry for the past 7 years, I used

to undergo training programs frequently and also I used to

update my knowledge through internet. But, even today I feel I

have only 25% of the knowledge I need. One day in a training

program one agent explained about the importance of savings in

a different way. This example I couldn’t have got anywhere else.

The example told was; God keeps the required food

inside each egg till the chick get complete growth. Or in other

words, till the time the chick has capacity to search food. The

only reason for keeping the required food inside the egg is the

chick’s life will not be guaranteed if it goes out for food in a pre-

matured state. Like this, each prime member of a family needs to

adequately insure himself so that the entire family is protected. I

feel this may not look like a best example, but surely a different

scientific example. Unless I had an opportunity to be in that

training session, I might have missed to know this concept.

Only through training programs we can get adequate

information and method of using them for our business.

Just watch what successful medical practitioners are


doing. At least once in a year, they attend medical conference on

their domain by spending their own money. Even if it happens in

a foreign land, they don’t hesitate to invest their time and

money to update their skill and knowledge. Why they are doing

this? The reason is to excel. They want to know the new

inventions and treatment methods and use them to ensure they

are further successful. The other purpose is to discuss with other

professionals and to update their contacts and knowledge.

Though this is an expensive process, they never bother to spend

on knowledge and updates.

Better knowledge will increase our presence of mind. We

will be able to solve the problems and objections quickly with

our better knowledge. Though there are many medium of

learning is available, knowing from the expert is always better

than self learning.

I hope now you will accept my point on importance of

training sessions.

‘More Training Better Productivity’

Some tips to attend the training sessions:

• Get the information of Training Date, time and duration well

before. Most of the candidates are missing training session

because of lack of intimation.

• Try to complete all your important works before training.

• If you are unable to complete your work before the training

session, try to arrange some alternate.


• If you are unable to arrange alternate solution, do your work

after the training session. Nothing will happen.

• Believe, you will get at least one new information in every

training session.

• By using Time Management techniques, give priority to your

other works before or after the session.

• To compensate your absence, try to seek the help of your

friends and relatives.

During the year 2004, there were 18 days training

program for agents for licensing exam. To get the agent’s exam

hall ticket, all agents must attend 18 days training program. One

candidate Mrs. Ramya have attended all 18 days program and

passed the exam with good marks. The wonder here is that she

was having a 3 months old baby. She used to bring her baby

along with her grandma to the training center. Her grandma

used to keep the baby in the next room while she was attending

the training classes. Once in two hours, she used to feed her

baby and continued to attend. What others will do in this

situation?

Unless we create the opportunity and lookout for

solution, we will never become free to learn something by

investing time. To undergo any training program, we need only

the interest and attitude. The door will automatically open. After

the college, how many days we spent to learn new things in our

life?



There are many factors that are influencing the Sales

Process and Sales Completion. In our business, customer’s

current financial position, current need and commitments,

opinion of others and our convincing capacity are some

important factors that are influencing the sales completion. But

for the convincing capacity, others are not in our hand.

Our prospect will recognize us only based on the nature

and truth of the information we shared with him. As many times

I repeated, our product is not tangible. Our customer can not

touch and feel or even see the product. To enjoy the benefit of

our plan, the customer or his nominees need to wait for a long

period. To sell such a plan, our selling ability must be sharpened.

For our profession, the selling ability is very important.

Even if we are a stranger to our customer, he will pay his

attention only to our knowledge and abilities.

The knowledge about our job is the knowledge about our

organization, knowledge about job related current affairs,

knowledge about our products and plans, knowledge about our

competitor’s products, other investment and saving plan’s

knowledge, current stock market situation, knowledge about

future expenses of an individual, safety aspects and

trustworthiness of life insurance companies, other general


knowledge and updated general information are the important

factors a life insurance agent must know.

Knowing these information by heart and using these on

time would enrich our selling process and it is important also.

Some Important Information:

1. Information about nature of our business

2. Information about our organization

3. Information about our plans

4. Information about our competitor’s plans

5. Information about other saving and investment tools

6. Basic Information of economics

7. Information about the safety aspects of life insurance

industry and companies

8. Day to day update of news.

“The success of an agent depends on the information he

exchanges during the conversation and the uniqueness of

them.”

1. Information about nature of our Business.

Any action done without a purpose and mission will go

waste. Moreover, without clearly knowing our job, we will not

get the involvement in doing that. Any work done without

involvement will not yield optimum result.

Information about nature of our business means the

basic requirement of our business. For an example our contacts

and their wish, sentiments and expectations is very important


information for our business.

As we know earlier, our job is serving. Serving means

satisfying the need of our customers. We are not selling products

or doing a service for physical products. Since we are selling the

intangible products called plans, we need to develop the ability

of explaining things in an interesting way. For an example, when

we explain about an event happened in the past, we explain

others in such a way that they literally form the scene in their

imagination and understand. Like this, when we explain our

plans, we should explain in such a way that our prospects get the

exact picture of the need and importance.

We can perform carefully if we know the nature of our

business. For an example, if an agent explains a plan without

understanding a particular group of people’s sentiments, there

are chances for him to get adverse results.

Where can we search and get this information about the

nature of our job? It’s near us. Yes, be in touch with the

successful agents of your branch. Discuss with them for

minimum of one hour every week.

When we begin this business, not everybody could have

encouraged you. Very few could have told you that it is a right

choice. Many could have discouraged you. If we give importance

to all these comments, we would miss this great opportunity.

Everyone successful today here, could have faced the troubles

initially. Only people know exactly about this business will

encourage you. Interestingly, they would be already doing this

business. You need to be away from some unwanted people’s


comments. This business is like taking water from Ocean, you will

get as much as you take. What we need is the ability of making

friendship and ability of performing interesting conversations.

2. Information about our organization:

We need to win the confidence of our customer to win

the competition. To win the confidence of the prospect, we must

present enough information about our organization. Even if you

have recommended the best plan, it is equally important to

promote your company to help the customer to take a favorable

decision.

“Whatever the information you are presenting to customer,

don’t explain by words alone. Carry sufficient proofs to support

them.”

Information about our organization is information about

the history of our organization, performance, shareholder’s

details, recent achievements, number of branches and

geographical spread, the quality of service and the exclusiveness

of our service and so on. We need to explain these with proofs to

our prospect. These information will win the confidence of the

customers though the benefit is enjoyed by him after few years

only.

We can get the information about our organization in our

Branch itself. Each day update the information. 1. When the

organization started? 2. Number of customers we have, 3. The

time taken for settling the claim or maturity, 4. The profile of

each shareholder of the company, 5. The merit certificates and


the positive news in the press about the company are some

important information we need to carry and show them to our

prospects.

3. Information about the plans we sell:

As we saw before, we sell the plan. In other words, we

sell the promise and collect money. The need of an individual is

different from each person. Policy Term, Premium paying term,

premium and maturity are some factors that are different from

each person. If want the sales process to be completed

successfully, we need to attract our customers. If we want to

attract the customer, we need to recommend a plan that

completely suits the customer’s need. Designing and presenting

plans that are looking as tailor made, is itself an art.

Each life insurance company has different plans. Each

plan is having a unique quality. We can not sell more plans to an

individual. But the same time, we can not sell same plan to all.

We need to focus only on the need of the prospect. Then, we

need to choose plan or plans that can address the need of the

prospect. Our prospect is not an expert in life insurance plans.

But the same time, in future, some other agent may approach

him and explain different plans. If we are recommending plans

focusing on customers benefit. We will be remembered always.

If we want to recommend the best plan, we must clearly

know about all the plans. If we know about the plans and their

features clearly, we can make a better sales presentation with

confidence and also the chance of committing mistake is very

less. Knowing thoroughly about all plans will enable us to create


combo plans that are very attractive.

Only by reading the product brochures and company

released presentations, we can not learn a plan completely. By

attending product training session only we can get clear idea

about the plans. In training sessions, we can know the benefits,

features, common objections and handling techniques.

Selling after a clear idea about all the products of our

company will increase our confidence while selling and also will

give us confidence to approach the customers after the sales. If

we sold a plan by focusing on our benefits or a plan that is not

benefiting the customers, we will sure loose the confidence of

the customer and people known to him.

“There are few agents selling products with higher

commission only. Doing this, will spoil the entire respect we have

created so far. In other words, if we sell plans that are customer

centric, we will sure get more recommendations and references

from the customer.

In the discussion of a person who has better knowledge

about plans, the confidence and clarity will be there. We need to

explain only the important features of the plan. Few people

having deeper knowledge some time, instead selling they start

taking product training to customers. We need to avoid this also.

Intelligence is informing the required and we should not hide

points that are important too.

The clarity about the plans will be gained only by

learning, discussing and presenting with customers frequently.


Many a times, the doubts expressed by our customers will make

us to get some unique selling points. The knowledge is getting a

shape only by experience.

For an example, in ULIP policies, the profit depends on

the stock market if the invested fund has equity exposure. It is

profitable to invest when the market is down. Customers having

knowledge about stock market will not prefer to invest in stock

when the market is up if they see a chance that the market may

come down. For the same reason, in the year 2006, a customer

refused to invest. He liked the plan and he was interested to

invest but when the market is down. I didn’t know to handle this

objection till then.

Suddenly, I got an idea. I explained the customer that

normally life insurance plans will take 4 to 5 days to get issued.

Till such time the invested amount will not participate in the

fund growth. But, after the policy is issued a customer can switch

the amount among different funds. This exercise will take just a

day. If the customer is investing when the market is down, within

the next 4 to 5 days, before his money starts performing in the

market, the market may go up and that growth may be missed.

With this fact, I requested the customer to sign the proposal with

debt fund investment and in the future once the market is down,

I requested him to switch the fund to equity market so as to

ensure the growth. He signed the proposal immediately.

Our brain is very powerful than many computers. It can

store innumerous information. If we work with involvement, the

brain will supply the information to us whenever it is required.


The scientist, who invented Benzene, was trying too hard

to draw the molecular structure. He tried several times and he

didn’t get a clue of making it possible. He saw an image in his

dream and with the help of the image he saw, he drew the

molecular structure of Benzene.

4. Our competitor’s plans:

Knowledge about our competitor’s plans and the top

selling plans in the market is very important. The reason is our

customer prefer only the best available. When our competitor is

also on the race with the same customer, when our customer is

comparing our plan with a competitor’s one, we can perform

well and win if we have knowledge about their plans also.

We should never criticize our competitor’s plan. But,

knowledge about competitor’s plan helps us to recommend a

plan that is better than the competitor. If our customer is already

having a competitor’s plan, we can recommend a plan that is

different from the earlier one and offer him a different benefit.

Even if we are not clear about the entire competitor’s

plan, we must know about the top selling life insurance plans in

the market. We can get the details of competitor’s plans from

our training team, higher officials and even directly from the

agents of the competitor. But, we should never degrade our

competitor or their plans. This will spoil our sales.

Having clear knowledge about our plans and our

competitor’s plans will enrich our conversation. The confidence

will be reflected in our speech. The things we believe strongly,


that can be done with full involvement. Otherwise, we will keep

quiet and come out if our customer says a competitor’s plan is

much better or we will start begging for a sale. By our submissive

request, we can collect only donations not premiums. The

chance of getting a donation is also very less.

In Chennai, we met one customer. He referred our

competitor’s policy and he told that that policy (ULIP) has 95%

first year allocation and a gift worth 10% will be given. So, the

customer will get 105% of the premium as investment. That

time, I was not aware the complete information about that

particular plan. But, I had a clear knowledge about ULIP plans

and I told him there is no chance for that unless there are hidden

charges.

Fortunately, our agent who accompanied me heard about

this plan few days before and discussed with that company’s

agent. He got the product detailer from him and he was keeping

that detailer. Then I took the detailer and explained our

customer how that policy takes the charges in due courses and

the sum of the charges was breath taking. We explained about

our plan and its transparency.

What we did was wrong. But, in that situation to explain

our stand and get the business, we did so. After listening to us,

immediately the customer rang up the agent who was his

relative and asked for the explanation about the hidden charges

we mentioned. That agent gave him an escaping answer and

finally the customer got frustrated and gave us a much lesser

premium than he can.


This is a clear loss for both of us and in fact we created a

bad impression about insurance plans. Now, we could have

understood to some extent how an agent should and should not

behave.

Initially we may struggle to understand about policies.

But after a little experience, we can understand any plan easily.

We can get the details any insurance plan in that particular

company’s web site.

5. Knowledge about other savings and investment plans:

Selling pure term policy is very rare today. But, the actual

insurance plans are term plans only (the plans has no maturity

benefits and high sum assured). The main reason for this is

people are not interested in plans that carry no maturity. I felt

many times the interest of customer drops down once we say

there will not be any maturity. In recent days, even after the

market volatility, still people tend to go for ULIPs are the clear

example of people’s interest towards short, flexible and high

return giving plans.

By explaining life insurance plans along with the

comparison of other saving and investment plans will increase

the participation and interest of the customers. While explaining

insurance plans, if we compare the various aspects of bank,

postal savings, mutual funds, share trading and other

investments like land and gold, people tend to pay attention to

what we say. Nowadays, customers have high knowledge and

aware of different schemes. We can get some attention only if

we know a bit more than them.


For an example, bank regular saving schemes, deposits,

postal saving and deposit plans, bonds, mutual fund schemes,

stock market analysis, real estate value of your area and growth

possibilities, tax effects, liquidity of those schemes, safety

aspects and stability of profits are some important information

we should always keep ready and updated with us.

All savings and investment plans are good and they will

have their own plus points. But the selling technique is

highlighting the strengths of what we sell. To do this, we need to

have clear knowledge about all. Isn’t it?

We should be prepared with the comparative analysis of

our plans with other savings and investment plans and the

exclusiveness of our plans.

Each professional will have their own style of comparing

these plans. Here I have compared these plans with life

insurance to the extent I know.

Bank and Postal savings and investments:

Saving and depositing through banks and post office

schemes are safe. The interest rates are guaranteed in the

inception. But, the interest rates are often lesser or equal to

inflation. Saving through these instruments will attract an

indirect loss only. We will discuss in detail about inflation latter.

Interest rates of banks are changing year by year. If we are

investing in a deposit which gives 8% interest for a 5 year term,

we will get the maturity with interest at the end of 5 years. But,

if we want to keep the money for some more years with the


same rate of interest, it will not be possible. The investor has to

invest through the new deposit and the interest rate may not be

equal or more than the previous. But we need to remember a

point. When a country’s economy is growing, the bank’s interest

rates are expected to slash down. For an example, just look at

the bank interest rates of the developed countries. India is a

fastest growing economy in the world now.

If we take an analysis that a person saves monthly

Rs.1000/- for an expense of his near future that can happen after

10 years. He wants to save this monthly Rs.1000/- for ten years

and use the maturity for his future need or dream. Mr. X saves

that in bank and Mr. Y saves that through life insurance scheme

that can give him maturity and life cover. If they die on the 3rd

year, for Mr. X, the bank will give the money with interest that is

saved till this death to his nominee. But, for Mr. Y, the life

insurance company will give the sum assured (+ fund value or

bonus depending upon the scheme selected) which is much

higher than the paid (saved) premium. Here in other words, I can

say, Mr. X got what he saved and Mr. Y’s nominee got what he

wanted to save.

Gold:

How buying gold as ornaments can be an investment?

When we buy gold as jewels, we tend to pay 15% to 20% more

than the cost of gold as making charges and wastages. If we want

to invest, we need to buy as gold-cakes only. But, we need to

keep them safe. There are risks involved in keeping them. Buying

gold and keeping them is more profitable to the people who do


that as business and not for common public.

Residential Plots and Land:

All of us have higher level of interest to buy land and

plots. This increases our social status. To build our dream home,

we can buy land or if we want to do agriculture, we can buy land

and we can invest in one or two plots and land. Buying more and

more land is profitable and healthy only for those who do it as

business. Often, we need to pay more than the registered value

when we buy land. The excess money paid above the registered

value attracts no guarantee and safety. If the government wants

to acquire your land for a project, the government will pay you

only the guideline value on that time. The liquidity on land is very

low. Another threat is changing the value by an establishment.

For an example, there are many commercial properties have lost

value due to a flyover bridge constructed above.

Share Market:

There are lot of differences in investing into stock

markets directly and investing through funds (mutual funds and

ULIP funds). People who are doing stock market investment as

their full time business also have lost huge amount in share

trading. Without proper experience and knowledge, investing

directly onto shares is highly risky. We can buy and keep shares

of good companies as long term investments. But, it is not

advisable to keep our entire money there. Fund managers of life

insurance companies are experts in stock market. Moreover,

IRDA will not permit them to take risky investment strategies.


To explain and compare genuine information like this, we

need to have a clear idea and knowledge about other

instruments also.

6. Basic information of Economics:

It is important to prove our self as an expert in front of

our esteemed customers. As per the psychology, if we want to

impress someone, we need to be an expert in our profession.

The major part of our business success depends on how we

impress our customers.

We may not be an expert in all. But, it is important to be

an expert in information related to our business.

Some important economics information related to our business.

1. Inflation: The decreasing value of money due to the price

increase year after year is called as inflation. In the recent past,

the inflation rate is nearly 7% year by year. In what way we are

affected by this?

If average inflation rate is 7%, and if we invest in an

instrument that gives 7%, we did not make any profit. To know

this in detail, if we can buy one product with 100 rupees this

year, due to inflation the same product will cost 107 rupees next

year. If we invest in an instrument that gives 7% interest, we can

buy the same product next year with the maturity of this

instrument. As a result of this, his money is not grown here.

Now, guess whether this investment is profitable or not.

So, only by getting an interest or profit above the


inflation will increase the value of money. If we know this fact

and discuss with this information, our discussion will have truth

and attraction.

Once I was sharing about inflation and its impact with my

NRI client. He was shocked to know that he was keeping around

18 lakhs in platforms that give him return lesser than the

inflation. After calculating the impact of the inflation, the very

next day he took my help in closing all those investments and as

a result of it, I got Rs.5 lakhs of premium. Hope you understand

now that all information is valuable.

2. Tax rates and Tax rebate:

Only for few investments the tax relief is there. There are

two types of tax rebates. One type is while investing and another

is while withdrawing. There are few platforms like PF, PPF, Tax

relief bonds, and tax relief mutual fund and so on. This is under

the section 80(c). But in India, only life insurance has both the

tax relief while investing and also while withdrawing. The tax

exemption on survival benefit, death claim and maturity is there

for life insurance plans under sec10(10D). If a customer can

enjoy the entire maturity or death claim as a non taxable income

means, is it a very attractive plan or not? It is a very strong tool

to counter other investment schemes.

Beyond this, we need to know income tax slabs, plans

having tax reliefs, capital gain tax rate and service tax rate are

the important details we need to know and update. These

information will be helpful to create a confidence with

customers.


In India, the season for life insurance selling is from

December to March of each year. The salaried people will

complete their tax planning in December itself and other self

employed and business people will take time till March end. If

we are expert in tax planning, we will get great mileage during

this period.

3. Our Country’s economical growth:

The growth of our investment will directly depend on our

country’s economical growth. The economical growth of a

country depends on the Gross Domestic Product (GDP) of that

country. Every year the GDP factor will be announced in media.

(Interim calculations are also got published often) Our country’s

GDP is growing at the rate of 8% (average) per year for the past

few years. It means, the total production of our country (income

through production and service) will be doubled in every 9 years.

This will directly reflect on per-capita income of average Indian.

This is sweet news for all of us. Isn’t it?

As we are one among the fastest growing countries in the

world, the same phase of growth is possible for more years in

the future too. In the world, it is identified that four countries

will have a steady and strong economic growth in the future.

These countries are called as BRIC countries. That is Brazil,

Russia, India and China. Since India is one among the four

attractive market, investing in Indian stocks are highly profitable.

Instead telling the customer this may be the return, informing

him with data like this would make him more comfortable to

listen to you.


These information can be obtained by magazines and

news papers. We need to update regularly and keep ready with

us at any time. It will be more helpful if we keep other growing

and grown country’s details.

What we are discussing are the factors which can affect a

common man. Some more factors like per-capita income,

domestic saving factors, future interest rates of investment

schemes, share market predictions, change in laws and new

amendments are to be watched closely. As we discussed earlier,

the growth of a country will directly reflect in the growth of

individuals.

7. Safety aspects of life insurance companies:

What ever the financial instrument we sell, people tend

to give priority to safety aspects. If we represent a popular brand

customers will not have much hesitation. But, if we represent a

new brand, these information will support us to create a

confidence. Unless we make the prospect comfortable, the sale

will not happen.

There are laws controlling insurance industry in India.

Insurance Act 1938, LIC act 1956 and IRDA act 1999 are the laws

defines all parts of insurance business and controls them. These

laws define even the maximum commission to be offered to

agents.

Insurance Act Sec 27:

Assets and funds of Insurance companies should invest

65% in central government bonds and 35% in approved


investments.

Insurance act 27C:

Insurance companies should not invest the policy holder’s

money outside India directly or indirectly.

Insurance act sec 29:

Insurance companies, but for loan on policy, should not

give any loan even to its managers and directors.

Insurance act sec 31B:

Insurance companies should not give commissions and

wages above the specified level.

Insurance act sec 34C:

While the performance of an insurance company is not

satisfied, to protect the public and investor’s interest, the

Authority can appoint additional directors for the company.

Insurance act sec 40B:

Insurance companies in India are not allowed to spend

more than the specified amount for management.

Insurance act Sec52H:

To protect the interest of the public and investors, the

Central Government can takeover and run the insurance

company if it not managed properly.


Insurance Act 54:

Notwithstanding anything contains in Indian Company’s

Act 1913, an insurance company shall not wind up or go for

solvency.

These are few laws that can increase the confidence level

of our customers.

8. Day to day update of News:

We need to update on our job related news regularly. We

should observe these information through media. The important

information discussed above is to be updated on daily basis.

We can differentiate us from others only by our in-depth

knowledge and command we have on subject. This

differentiating factor only creates a desired environment for sale.

Current world is an information era and doing revolution on

information technology. If we want to be a fit professional now,

we need to spend time everyday in collecting and updating

information. Particularly, life insurance advisors and sales

professionals must subscribe for insurance magazines. Without

investing money on this, we can not become the best.

More than the domain based knowledge we should

develop us on other talents. This will help us to create easy

friendships. Ever in the world, the respect will go for the wise.

“The recommendations you are giving should always be the

best and exclusive”



We will discuss about the basic requirements for doing

this profession under this session. Whatever the profession,

depending on its nature, we need to have some basic

requirements. If we have them already it is appreciable.

Otherwise, we can develop them if we have involvement. But, if

we are ignoring these basic requirements, we can not run the

show for a long time.

Basic requirements for Life Insurance selling profession:

1. The number of contacts we have.

2. The time we allot everyday for this profession.

3. Vehicle and Mobile Phone.

4. Will to learn.

5. Interest on Money, Reward and Growth.

6. Self confidence and perseverance.

7. Nature of loving customers.

8. Being ready to serve always.

We will see the above stated in detail now. The above

mentioned points are only a few important requirements. By

experience, we can develop as it says, ‘practice makes a man

perfect’.

1. The number of contacts we have:

Our strength in this profession is the number of known

people. As we discussed earlier, the investment required for this


profession is mainly the number of contacts we have. A person

having more contacts can do this profession easily.

Each one of us knows many people. But, we need to

identify the prospects for your business who can take a policy

from us.

Who can take a policy? Anyone earning can take a policy.

But, all earning person may not in a position to pay premium.

Though life insurance is important to all, few people’s income

may not be sufficient for their survival itself. We need not waste

our time with these people. We can approach who lives within

his income and have something in surplus. In other words, we

can approach from middle class to anyone upwards.

Method of listing our contacts:

We need to write down the list of known people as

mentioned below. Take time to prepare this list so as to ensure

no one is missed out.

1. Close Relatives

2. Distant Relatives

3. Friends

4. Neighbors and people in your locality

5. Your classmates and teachers

6. Your colleagues (past and present)

7. Your existing customers of other job or business

8. People for whom you are a customer (milk vendor,

provision store owner, carpenter, electrician, parents of

your children’s friends, tailor, textile owner, vegetable


vendor, meat vendor, cable TV operator, mechanic,

doctor, barber, your colony association members and

anyone with whom you have access)

We may not have all the details of the listed person at the

time of preparing this list. But, we can write down in a note

book and collect the details one by one latter. The main

reason for us to prepare this list in a note book is not to miss

out anyone. We can not remember everybody and recollect

whenever we want. If we have maintained in a note book,

whenever we want, we can access to the data. This data will

be very useful for us to plan each day.

How can we do this job if we know less number of

people? As we discussed earlier, we should become member

of clubs in your city. We should learn the art of making

friendship. Where ever people are gathering you also be

there. Everyday get introduced to minimum of 20 new

people and share your visiting card. There will be a place

where people go for early morning and evening walking. You

also go there and you can find the wishes are shared within a

week and you will make friendship there. You can attend any

famous Yoga classes where you can get access to rich people.

Like this, you can list down many ways to get introduced and

become popular.

These procedures are not only for people with fewer

contacts, but also for every one who want to succeed for a

long time. Whom so ever you meet, you must look out for an

opportunity to sell a policy or to get references.


2. The time we give for this profession:

It is important to allot adequate time everyday for this

profession. Candidates who have all the qualities of a successful

agent are failing only because of this reason.

In the year 2006, my sales manager brought to me one

business man for agent’s interview. He has more contacts in his

town and he was also interested to do this profession.

I asked the business man that the hours he can allot to

this business everyday. He told me that he wouldn’t require a

separate time to do this business and he would do along with his

regular activities. Though I tried to explain him the importance of

separate time, he didn’t accept. Finally to give a try out I selected

him to become an agent. He didn’t attend the training session

regularly and even for exam, my sales manager struggled to

make him appear. God’s grace, he passed the exam and became

an agent.

After that, we tried very hard to make him perform and

failed. Without dedicating adequate time we can not become

successful in any business. In this business, time is converted as

currency. Day by day, the money we earn per hour will be

manifold.

“Here, time will become currency”

I would like to remember an interesting personality here.

In Namakkal, Tamil Nadu, there is an agent named Mr.

Karuppannan. He is a national topper for that life insurance

company. I had an opportunity to discuss with him about his


success secrets. He taught me a new approach to this business.

He used to go for early morning walking everyday by 6 am. He

used to choose different directions from his home and walk for

one hour in that direction. While returning back, he used to meet

the known people in their home and enquire their well being.

While starting from their home, he used to promote insurance

plans and everyday he meets 15 people like this before 8 am.

After returning home, he writes the prospects met. After that, he

used to meet the hot prospects (prospects who agreed to take a

policy) and complete the sale.

It was very interesting and I invited him to deliver a

speech in my agent’s meet. He shared the same point there.

There were many agents attended the meet but one took this

point very seriously. The very next day morning our agent Mr.

Manivannan (he is also a business man) called me by 6 am and

told early morning formula is very successful and he already

collected 25000 rupees premium.

I was very happy that at least one agent can take the

point. In few months, Mr. Manivannan also had become national

topper and even today he is very successful in life insurance

business.

3. Vehicle and Mobile Phone:

To overcome the competition, we must be fast in serving

our customers. In this profession the competition is high due to

higher number of agents in the market. Because of this, the

customers are getting more offers and services at their door

steps. At this juncture, customers expect only a timely service. To


give a timely service, vehicle and mobile phone is very important.

As we discussed before, here the time will become

currency. To save our time and use it effectively, own vehicle is

important. We don’t need to travel by costly cars. But, minimum

a two wheeler is essential to this profession. Otherwise, we can

work only 1/5th

of a person who has vehicle.

Our customer may not be ready when we wish. We

should be at his service. To reach him in time, own vehicle in

good condition is very important.

Like this, Mobile Phone is also essential. When a

technology is used by most of the people, we also would be

compelled to use it. With a Mobile Phone, we can be in touch

with our customers at any time. Now, most of the agents are

having these. But, it is very bad to know that there are very few

sales managers are not having vehicle and proper mobile phone.

“Don’t change your mobile number often”

4. Will to learn:

As we discussed earlier, knowledge is very important for

this business. To learn, we need to have open mind. Person who

thinks, ‘I know everything’, will become good for nothing.

Learning is a never ending process of our life. Whatever

we learn without interest can not be remembered when

required. People not having a will to learn, will have a very short

span of life in this business.


When the great Socrates was sentenced, he was asked to

take the poison to death. The day came and the soldiers asked

him to do so. On that time, he asked the soldiers to give him

some more time to enjoy a new music that came on air. He

asked them to give an opportunity to learn a new thing before he

dies since that the music was new to him. Just see the thirst of

great people. Learning is the only way to keep us alive and

young.

To get the interest in learning, we must love our

profession. We should have a passion to be a master in our

profession. Always remember this world offers a red-carpet

welcome only to wise. We need to analyze what we learnt new

before going to bed everyday.

Or, imagine a situation when our customer raises doubt

and we are unaware of an answer to that. We will sure get the

urgency to learn.

5. Interest on Money, Reward and Growth:

People say that the heart that says ‘enough’ will make a

peaceful life. In the present competitive world, we can change

and say that the heart that always urges to work more without

saying ‘enough’ will make a peaceful and successful life.

We would have not achieved anything significant without

having a goal and strived to achieve that. This is why I mentioned

that we should work harder without saying ‘enough’. Edison

invented 1093 products and equipments only by working 18

hours everyday.


There are many life insurance agents who feel achieved

after doing the minimum required business to keep their license

in-force. Is there any benefit to them or the branch or the

company by doing this?

Successful people don’t benefit them alone. They benefit

their team and their people. As we discussed before, many

people are influenced and are becoming successful by following

agents like Mr. Karuppannan and Mr. Manivannan.

If we have higher goal in this profession, we will not rest

and continue to meet more people and do more policies. As we

discussed before, if we insure more people, that benefits our

nation. Obviously, the successful agent’s family will be rich.

Because of successful people, pleasure is for all.

We should have interest to make money. Do we have

interest to make more money? Yes, we must have it because,

this world treats richer as successful people. But the same time,

we shouldn’t make money by doing an unethical selling by using

his ignorance. The only factor that enables us to work without

tired is the passion.

There is no point in working without a goal. We can plan

only when we have a goal. We can act only when we have a plan.

We can reach the top only by acting. So, the goal we have should

be greater.

In my experience, no one achieved anything remarkably

without having an interest in anyone of these money, reward or

growth. Aimless people’s efforts will come to an end after


achieving the minimum required business each year and after

few years they will vanish from this business.

Only the failed people criticize about this business. As we

discussed earlier, a person who know the glory of this profession

would have joined as agent instead of speaking about it. I

strongly say this is a Noble Profession.

In this profession, the renewal commission is paid only to

the policy procured agent. To earn big money, we don’t need to

take higher premium policies. Instead, we need to go for high

number of policies. Your stay in this business will be concreted

only by higher number of customers. The opportunity to acquire

higher number of customer is high in this profession unlike any

other profession. The top performing agents of all the companies

are visiting foreign countries frequently without spending from

their pocket.

6. Self confidence and Perseverance:

Self confidence and perseverance (trying hard with

firmness) is very basic requirement of success. For this

profession, we need little more than it required for other

business. The reason is we are selling plans and the benefits are

enjoyed by the customers after a long time.

We need to continue to try with confidence till our

customer makes a favorable decision after getting the

confidence on us and our plan. While he transforms to make a

favorable decision, there are many chances that can influence his

decision and we should be always prepared to face them with


self confidence and perseverance.

Once, my agent took me to a customer. He met the

customer few times before for business discussion. Though it

was a hot call, the sales completion was taking time.

I discussed with the prospect and found that we have a

good opportunity to get big premium from him. Who will leave if

an opportunity is explored? I continued to follow him for

business. But after few discussions, my agent left the hope and

left following him. But, without my agent, I directly followed the

prospect.

From the first discussion, we took 45 days to complete

the sale and I got a good premium and gifted to my agent who

introduced him. The sum assured under that policy was 1.25

crores. By taking this business, I learnt a valuable lesson that is

‘Self Confidence and Perseverance’.

Some occasions, we have got positive replay after 6

months from the prospects. Remember the delay will bring

better favor to you. It is worth to wait long because we are going

to get a long term business and personal relationship with each

customer.

7. Nature of Loving Customers:

By believing us, our customers are giving us the

responsibility of protecting their family’s financial need and his

future financial requirements.

The benefit from a customer will not end with single


policy. Once he is satisfied, he will recommend us to all his

known people whenever they think about an insurance, savings

or investments. What else you want from a satisfied customer? If

one is becoming two and then multiples? Just think about the

manifold benefit.

All customers are expecting transparency and truth from

us. By being transparent and truthful, we can win the confidence

of them and become a top performer.

Once, my agent got a bigger amount as single premium

from a customer. In the year 2008 the share market was going

down. On that occasion, the customer tried to contact the agent

and get the information on the stock market and fund switching.

To escape from that, the agent informed the customer not to

worry. He told him that the market would improve.

But, the market continued to fall down. The customer

was frustrated and again tried to contact the agent. The agent

failed to pick the call. Finally the customer found my visiting card

and called me once the market actually touched the bottom end.

I was getting updates from the investment experts and I was

little aware of the situation already. With that little knowledge, I

gave confidence to the customer with adequate proofs and

asked him to wait. The customer told me that he was not angry

with the initial wrong suggestion given by the agent but he was

upset really by the negligence of the agent.

I believe it is our basic responsibility to answer the call of

our customer unless if we are indisposition to receive the call.

Even if we are missing the call, we need to call them back once


we come out of that situation.

We miss the call from only unwanted and irritating

people. Can we consider our customers as unwanted and

irritating? If we behave like this, how blunder it will be? Misusing

a technology will be as good as insulting the invention itself.

We can attract the customer by offering other help and

suggestions. There are many business giants are made by a

simple philosophy of less margin and high turnover. So, give first

priority to your customer’s benefit. We need to take care of our

customers with higher level of responsibility.

Why we need to be so caring? You will understand this

once you continue to read. Once, from an unknown mobile

number, one lady called me with tensed voice. After few

seconds, I understood that she is my customer’s wife. I made her

to relax and discussed with her. When she called me, she was in

Bangalore and I was in Trichy.

She told me that her husband was brutally attacked by

unknown gang and admitted in hospital in a serious condition.

He was in coma and after few hours of treatment, he came to

conscious for few minutes and asked his wife to contact me and

again went unconscious. He is a smart and responsible family

man and it was really shocking news to me.

He was in a very critical condition that time and I was

unable to go there due to my official appointments. I asked his

wife to go to her home and takeout all the policy documents and

call me. I got all the policy numbers and enquired with all


companies that he had policies and found he took no medical

insurance policy. I felt bad and I became normal after he spoke

to me in his recovered health condition.

But, still I am not convinced about my part played as a

financial advisor that I could have insisted him to go for a

medical insurance policy when I took business from him. Please

understand from this situation to what extend we are important

to each customer.

8. Being ready to serve always.

Do we have any particular time for this profession? Can

we allot any specific time to this business like other profession?

If we have a full fledged office and wait there for the customer to

come, can we get any business? What time is suitable to this

job? Is it morning or evening? Working days? Holidays? In fact

there is no specific time for this business.

Life Insurance plans are very important to all. How many

know this fact? Have you ever heard a customer have walked

into life insurance offices and took policies? Even if it had

happened, that would be rare and would be for a different

purpose.

Once I was discussing with my friend in Life Insurance

Corporation. That time, one gentleman approached my friend

and asked for a life insurance policy. I was shocked and I was

happy that people started realizing the importance of life

insurance. I thought that the forthcoming days would bring glory

to all agents and sales people of life insurance.


Curiously I asked that gentleman for the reason he

wanted a life insurance policy. His answer demolished my one

minute happiness. To get an address proof to apply for a driving

license he proposed that policy. This happened in the year 2006.

I was very sure that policy would have been discontinued. We

can not run any business by taking the reference of occasional

events.

We need to do this business only when our prospects are

free and in a place that is convenient to them. So, we don’t have

any specific time to do this business. If we observe the great

people, either their body or mind will be working always.

We need to meet some people in some specific time and

there are times when we shouldn’t meet them too. For an

example, we need to meet the office goers in the morning

before 7.30 am or after 7 pm or on holidays. On holidays, after 9

a.m. and before the lunch time and after 6 pm are the right time

to meet them.

We should not meet the medical practitioners (doctors)

during their consulting time. Either before their consulting time

or after they complete their work, we should meet them.

We should not meet the business people and traders

between 9 am and 2 pm. Because, this is the time they are

normally busy with their banking activities and other follow up

activities. Meeting them in this time frame, will be disturbing

them and they may not listen to you.

In general, the successful sales presentation happens


during prospect’s free time and particularly in their home. We

have observed that the presentations made between 7 am to

8.30 am have given us 1 sale out of 3 presentations within a

month.

Like this, we are supposed to meet different types of

prospects in different time and we should be ready to work at

any time round the clock.

In Trichy, we got an appointment to meet a customer at

10.30 pm. We were there in his home by 10.30 pm. When we

started the discussion, it was 11.30 pm. That was a pleasant

discussion and we were able to convince him. Finally he gave us

a premium of Rs.25,000 at 12 pm. The specialty of that premium

is that was the first policy of a private life insurance company’s

Trichy branch when I was responsible of installing that branch’s

operation.

For back office staffs the work time is between 9 am and

6 pm. But for a sales man, the time is when the opportunity is

there. Luck is nothing but a point where the opportunity meets

the alertness.

What we have seen so far are the characteristics that we

need the most to do this business successfully. Anything is

missing from this will disturb the business to a greater extent.

Small things together make Perfection but Perfection is not a

small thing.

As I am insisting on so many points, please don’t feel that

this profession is a tough one. If we are cautious on small points,


this profession is like a gold mine.

Nature never likes the delay. Nature throws the

opportunities before us and it is our responsibility to catch them.

If we miss, it will go to someone.



This is the first step of sales process. What we have seen

before are the pre-sales preparations. Now, we are on the job.

Things we are discussing after this are very important practical

procedures. These are learnt from different occasions. This will

change from person to person depending on the situation and

need. For an example, we don’t need to use the sales techniques

like a professional sales man with our well known people.

Artificial behaviors with our close one may give a negative result.

So, use these techniques depending on the situation and

people. But, the methods discussed here are proved successful.

By following them, you can avoid negative results and mistakes.

Approaching is the primary step of a sales process. The

mistake we make here will spoil or disconnect the further

proceedings. Approaching should create a good impression with

our customers. Before we see the approaching methods, we will

understand the importance of approaching.

By introducing or remembering us with our prospect,

getting the time for business discussion is called approaching. By

approaching, we can get the time to meet the prospect at his

convenient place.

If we meet the prospect without getting a proper

appointment, we may start our discussion without knowing his

comfort and work load. By discussing like this, we may not get


the attention of the prospect. We will be wasting the time of us

and our prospect and finally we may create a bad impression

about us.

We can save time by approaching. By getting a proper

appointment by approaching, we are assured of meeting the

prospect in a convenient time and place. Sometime, our prospect

may not keep his words and may ask us to come back after some

time. We can be benefited by this because a thin layer of

kindness will be created in his mind if we are patiently accepting

to meet him again.

On the other hand, if we meet a prospect without a

proper appointment. He may not discuss with us if he is busy and

the time and money taken to travel there will be a waste. People

started this business without approaching, have wandered and

ran out of this business with frustration in few months. The

reason here is not the toughness of this profession. It is because

of our mistake of doing this without proper practices. Moreover

we will gain someone’s anger if we meet him without his

permission.

Approaching is the first event. Is it important to create a

good initial impression or not? First impression is always should

be the best impression.

Few agents may say that even the well known people are

not picking the call if we ask time to discuss about life insurance

and the best way is to just meet them at their place. This is also a

true statement. But it will be a costly trial if we meet someone

without proper appointment. The rate of error will be minimized


if we follow the successful strategies.

“Never believe that all the approached prospects will give

appointment to meet and discuss.”

Approaching is calling the prospect through mobile phone

or landline and asking a right time and place to discuss about our

plans.

Why we need to ask for appointment through mobile or

landline? Can’t we go directly and ask the permission? Going

directly to a prospect’s place will involve cost and time. The

process of approaching is only to reduce them. Often the travel

gives no result, the frustration mounts.

Another benefit of approaching is getting the opportunity

of discussing with the prospect with his acceptance and

involvement. If the discussion happen with participation of

prospect, that will be lively and give a good start to the sales

process.

While approaching our voice should be clear and kind.

Since we are contacting through phone, our voice should be with

modulation and audible.

Things we need to conform while approaching:

1. While approaching, keep yourself in a calm place. Then only

the conversation will be clear and without disturbance and our

mission also will be fulfilled.

2. If you are calling from your mobile phone, call from a place


where there is a clear signal. Ensure the discussion is not

disturbed for any reason.

3. While calling, if the prospect is busy or not in a mood to speak,

softly tell him that you will call latter. Don’t try to explain

anything then.

4. When there is a favorable situation, ensure that you are

speaking with the right person initially. Introduce yourself and

enquire his well being. Ask his permission to meet and discuss

about the plans. It is better to make the approaching dialogues

as short and sweet. For an example, “good morning sir, I am John

on line, may I speak to Mr. David?” (On the other end, if David is

there, he will say ‘yes’ otherwise you will get the information of

when can you contact Mr. David.) (If Mr. David is on the other

end ask him like) “Sir, I would like to meet you and discuss about

a saving and investment plans we have. Shall I meet you today

evening Sir?” (If he says ‘yes’, ask for the time and place to meet

him) If he says not in the evening, ask for tomorrow morning Or

tomorrow Afternoon and ensure the meeting happens as soon as

possible. Often you may get answers like, ‘I am not interested’,

and ‘I already invested enough and call me after two months’.

Remember once again, if all the approaches are getting

converted as appointments, all life insurance agents and sales

people will be millionaires by this time.

While getting negative replays, you need to be more

confidently continue the conversation and you should ensure

that you are not irritating him. As a final tool you can say him

that you will not force him to buy a policy and you will leave the


purchase at his decision. Tell him that you need time only to

explain the plans and their benefits.

We can say to the prospect that he can invest if he is

interested or he can call us whenever he likes to take a plan. You

need not exactly follow the words I have given here. Most of the

sales training programs will guide you to follow the script. But, I

would recommend you to be as you are and speak without

slipping from your nature. If your way of speaking is not polite

and pleasant, you must correct that immediately. Don’t let your

conversation to look artificial and never force the prospect to

favor you.

Speaking through phone is an art. While we speak before

a person, both of us can see each other and see the expressions.

But, through phone, both of you are not seeing each other and

your emotions can be conveyed only through the voice

modulations. In how many ways we can express the statement, ‘I

want a cup of water’?

Good orators have gone to top most positions than

people who are expert in action. For example, great leaders have

attracted mass crowd of people only by their speeches and won

their confidence.

Never try to sell while approaching. Your aim of

approaching is to get appointment and not to sell.

While approaching, sit in a place comfortably and keep

your pen and diary ready. After calling don’t search for pen or

paper. That may disturb your prospect. Clearly note the time and


place with exact address while fixing the appointment. If your

prospect asks to meet him in a place after one week or so, call

him a day before the meeting and conform the time and place

again because in one week many things can change.

Please note:

Our biggest enemy in our life is our hesitation. Don’t

leave anyone without approaching them and never forget that

by giving a life insurance plan, you are helping him and his

dependants.

Hesitation is our greatest weakness. If we are not asking,

someone in this world will ask him. Never miss any opportunity

that is seen.

One of my relative got a good job. He is my close relative

and he likes me very much. Somehow I didn’t discuss with him

about life insurance plans. After few months only he came to

know that I work for a life insurance company. Once I was in his

home and I found a policy document of my company there. I

came to know that he took a policy with the same company I

work through some other agent for a sizable premium.

To become an expert in approaching, you must approach

minimum 15 prospects everyday. This experience will teach

many things that we left to see here.



Now, we have approached and got appointment to

present our plans to our prospect. Will we directly to and meet

the prospect? While you are going for an exam, will you directly

go and write the exam? Or will you do preparation before the

exam?

Meeting in person is also like an exam. This is the

occasion to score good marks by using your knowledge and skills.

You need to prepare before this most awaited and important

occasion.

How a surgeon is preparing before a surgery? How the

pilots and airport officials are preparing before the takeoff? How

a candidate is preparing before an interview? Like this, we need

to prepare before each presentation.

There are few steps involved in preparing. We will see them one

by one here.

1. Gathering Information: To know all important details about

our prospect in advance is must. To the maximum possible

extent we need to collect the information about the prospect. If

we have required information about our prospect, we can run a

trial presentation in our mind before the actual presentation.

Practice is an important confidence boosting exercise. Prospect’s

age, family member’s details, job or profession, income, likes and


dislikes and anything that can help us are the information we

need to collect. These information will help us to avoid mistakes

and target his needs and interests. Any small information can

help us to a greater extent.

2. Choosing a correct plan and collecting proofs and documents:

Since we have information about the prospect before the

presentation, we can choose the most suitable plans and study

them once again. We can collect the proof and documents that

can support the sales and keep them ready in our bag before we

start. By doing this, you can optimally use the given time. The

time given is short. We can expect favorable results only by using

the given time effectively. If you are not confident in choosing

the right plans, you can very well take the help of your higher

officials. Present plans that can satisfy your prospect. Many

successful agents often design combo plans with few existing

plans on their own. These plans look like excusive plans that are

designed for prospect. For an example, we can design a combo

plan with ULIP or Money Back along with a medical insurance

plan.

3. Appearance is Important: We need to attract our prospect in

the first second of the meeting. Irrespective of your experience

and knowledge, your appearance will get you the first 10% of

marks. The dress you wear should be in suitable color and it

should not irritate the prospect. Like dress, the things you keep

with you also will reflect you. Keep a good looking bag, pen and

keep your hair well combed. Keep your eyes on things that can

create a good impression. Don’t carry or keep anything that can

irritate your prospect.


4. Remembering the same type of customers: Right examples

always help the sale. But there must be truth in our statements.

Highlighting the customers alike to the prospects or highlighting

the satisfied existing customers from his place or relative will

help the sale by enhancing the confidence. Sometime, the wrong

examples have destroyed the sale also. So, we need to

remember the right examples ready and use them in the

appropriate time. For an example, keeping the fund statement of

a profitable policy holder’s will help the sale. Only our experience

will teach us the art of choosing and using the right examples.

5. Few seconds before the meet: We must be there in the

meeting point at least 10 minutes before the given time. This will

reduce your last minute tension. The mental tension will reduce

the efficacy of our skills to a greater extent. As you are in the

prospect’s place, you need to do the following things. Keep the

things ready and keep them in your hand. Don’t search for things

after sitting in front of the prospect. Instead taking your visiting

card from purse or pocket before him, keep it ready in your

hand. “You are in his place and spending his time. So, ensure

you are not doing anything that disturbs him”.



Fact finding is observing and collecting the required

details and information about the prospect. This is in addition to

the topic we saw “collecting information”. These data are the

data which can support or disturb the sale. For example,

prospect’s current financial status, health condition, his existing

insurance policy details, current commitments and so on.

We may not get correct information before we meet. But,

while presenting we can gather these information. We can

clearly know about prospect’s present needs, future needs and

his capacity. With the help of these information only we can

suggest correct plans to the prospect and make a meaningful

presentation.

While discussing, the prospect will give clue to many of

these information. By a close observation we can get enough

information. Concentration and presence of mind are very

critical for an insurance agent. For an example, a prospect may

look like wealthy. But he may actually be in a situation of crisis or

low inflow of money. This can be observed only when we

converse. Without knowing the fact, our speech will be useless.

Sometime, presenting without knowing the fact may lead to a

low premium policy than the prospect’s actual capacity.

There are two types of fact finding. 1. Finding the fact

through others and 2. Finding the fact during the presentation.


With the first method we can know the prospect’s financial

status, family members, his interest on saving and insurance

plans, his health status and the people whom he consult before

taking a decision. These information are not important for all

types of prospects. But, if we know them we can make a better

selection of plans and present them. Through the second type,

we can know his interests, his mind status and expectations. For

an example, if a prospect is already invested more in bank

deposits, we may guess that he is more particular about safety

aspects.

So far we have seen in fact finding are to help us to select

the right plan. We need to observe his answers and objections

carefully to know whether they are sincere objections or

insincere objections. Only by a close observation we can know

this.

Observe Carefully: A proper sales presentation is making the

prospect also to participate in the discussion. Only by the

conversation of both, the fact will come out. Then only we can

understand the correct situation. After few months of starting

this business, maximum presentations will happen only with the

referred prospects. On this situation, we may fully depend on the

information given by the person who introduced the prospect. If

the fact is different, we may not attract the prospect.

For an example, in Chennai I went with my agent to

present to his prospect. As per the statement of my agent, that

prospect would be earning around Rs.30,000 and he is already

paying a home loan emi. So we decided that he would not be


interested in paying higher premium. When we met the prospect

also he looked like that.

But, after few minutes of discussion, the fact was entirely

different. He was actually earning around 10 lakhs per annum

and but for a small home loan he was not having any

commitment on saving plans or insurance plans. He had a plan to

go for another house after the pre-closure of the existing one.

After knowing this, I recommended a plan with 2 lakhs of

annual premium to be paid for 10 years. The maturity after 10

years would help his daughter’s higher study. I explained about

the insurance cover in that plan and benefit also. I recommended

another plan to protect the existing home loan.

He gave us the cheque for both the policies without any

further discussion. But, my agent was approaching him to take a

plan with the premium of Rs.15000 per year and he was

explaining the benefits of that plan. Since this customer was in

higher income group, the plan of paying Rs.15000 per year didn’t

attract him and that could be the major reason for the delay. As I

mentioned in approaching, it is wrong to explain the plan while

approaching.

What we understand from the above case study?

1. Collect the correct information before presenting.

2. Make the prospect to participate in the discussion.

3. Don’t sell while approaching.


Questioning Disciplines: You may think what discipline need to

follow in asking questions. In general people don’t like to be

questioned. But to get the details we must ask questions. So, we

need to ask questions in a gentle way. There are two types of

questions direct and indirect questions.

It is better to explain the customer in advance why you

are asking these questions and how that can help you to design a

better plan. For an example, “Sir, I need some information about

you to design a plan that exactly suit you and that can give you

the maximum benefit. May I get those details Sir?”

While asking questions, we must use appropriate polite

voice modulation and ask them clearly. After getting each

answer, you need to note them in your writing pad or note book.

This indicates that these information are important and you are

trying to do something with those information. The prospect will

involve in the discussion and we can easily read his interest in his

face and from his answers. If he cooperates ask further questions

politely and if not don’t compel him.

Methods of asking direct questions: Some common information

can be asked through direct questions. For an example, date of

birth, parent’s age and other family member’s date of birth can

be asked through direct questions. Instead of asking questions

continuously, after each answer render some thanks or

appreciations and continue to ask further questions.

For an example, once I was presenting to a top business

man along with my agent and sales manager. As mentioned

above, I collected the information. When I asked his only


daughter’s name, he told as “Rhythm Sri”. Immediately I told him

that there is a special thing in this name. He got surprised and

asked me that. I told him that Rhythm is the English world

without vowels and that is the longest word without vowels in

English. You can imagine the result of that presentation. This

should come naturally. Once you seem to be artificial, the

customer tends to repel you.

While asking questions, look at his face and

simultaneously write the answers in your note book. Any

information that is not sensitive can be obtained by direct

questions.

Methods of asking indirect questions: Any sensitive information

can be obtained by indirect questions. Information regarding

debts, own house or rented house, health status and income

level can be obtained by indirect questions.

For an example, to know whether his parents are alive or

not, you shouldn’t ask directly. Instead, you can ask “Sir, what is

your father’s age now?” and “Hope he would be healthy now”.

For these questions, the customer himself will say dead if not

alive.

Instead asking the customer whether he is having any

disease, you can ask “Sir, are you going for any regular medical

check up now?” Moreover if any one else there in the place of

discussion, make your questions more gentle and polite.

Questions must be asked with presence of mind.

Collect maximum information before the meeting. After


few months from the inception, we will be meeting more of

referred customers. So, we must collect as many information as

possible before we meet. If your customer knows that you are

aware of information about him, he would appreciate your

involvement on the discussion.

In this competitive world, the respect is given only to the

smart people. Smart people always keep themselves ready

before doing anything.



Now you are before the prospect. Means you are in the

exam hall. The question and answer sheet is before you. What

you need to do now? You need to use each second to score.

The beginning: As you have got prior appoint, don’t think that

the prospect will be readily waiting to discuss with you.

Introduce you once again. Give your visiting card by both hands.

If you are before a well known person, spend some time

personally. Then, slowly ask his acceptance to discuss. Starting

your sales speech immediately after entering is not

recommended. If the prospect is referred by someone, speak

something about the person referred him and state your

relationship with him. This will create a favorable atmosphere for

sales presentation. Shortly tell him the purpose of this meeting

as, “Sir, I would like to discuss with you regarding the best plans

available with us. Shall I continue sir?”

Get his acceptance and then continue the discussion.

Doing this will get the attention of the prospect. If the prospect

allows you to speak and doing something else, wait till he pays

attention. Whatever you speak without prospect’s attention will

go waste.

Few prospects may insist you to speak while they do

something else. That time politely tell him that, “Sir, I hope you

are busy now. Shall I wait for few more minutes?”


Presenting: Now we are in an important and most awaited

moment. First, brief about your company. Then explaining about

the plan directly is one method of presenting. But, I would like to

recommend a different approach. By practice you can master

this approach and do better. We need to bring life into our

speech. Both need to participate in the discussion. If you alone

speak, it will not be a conversation and it will be like a stage

presentation.

Our responsibility is to design a plan that can help our

prospect to provide financial solutions for his responsibilities and

dreams and not dumping a plan we choose. A life insurance plan

is like a raw material. Believe we can shape that in the way we

want. For an example, if a married man is having one daughter,

he may need a plan that provides finance for three of his

responsibilities. One is for his daughter’s higher education,

another is for her marriage and yet another is for his and his

wife’s retirement. In case of any unexpected death to the

prospect, our plan should provide money for these entire three

basic requirements. Instead of doing like this, explaining the

plans entry age, minimum premium, name of the plan will bring

no meaning to the discussion. Remember that you have not gone

there to take product training to your prospect.

As we discussed earlier, if your prospect is not

participating, your effort will go waste. Discussing like this will

bring the attention of the prospect.

So, make the prospect to participate in the discussion.

While presenting, get his acceptance after each step and go to


the next one. Ask his opinion about each recommendation.

Doing this will bring his involvement and make the presentation

alive.

Ask for the information by using the questioning

techniques we saw earlier. Questioning should not be like

enquiry. Instead of asking the age, ask the date of birth of each

family member. There is a meaning for doing such. Information is

the real strength.

Once I went with my agent to meet a business man. We

collected the required data including his entire family member’s

date of birth. We found the next day was his son’s birthday. After

our presentation we concluded with the next appointment of

meeting him after one week. But, we went to his home the very

next day with a good birthday gift to his son by 7 am. It was a

surprise for him that we were there early in the morning with a

birthday present. He asked me how we knew that. We told the

truth and wished his son with the very first gift on his birthday.

They treated us well and I slowly asked him to gift a plan to his

son for his higher study on his birthday. Smilingly he gave us a

very good premium.

Small key opens bigger lock

The details of prospect’s income, his asset and liabilities are to

be asked with gentle questions. Now we have his full details. We

can design a plan that perfectly suits him and addresses his

needs and future requirements. Why we should design a plan

instead of explaining a plan already we have?


Life insurance plans must fulfill customer’s needs. Our

existing plan or combination of few plans of our company can

fulfill the needs. For an example, designing life insurance plan is

like constructing a house to live. In a 1000 square foot land,

different types of houses can be built according to the status,

need and number of people in the family. But, a rich man’s plan

will not be affordable by a middle class man and a middle class

man’s plan will not be liked by a rich man.

How can we design plans based on the information we

got? Here we can see some examples.

Type of customer Need Plan

Newly job going

youth

Long term savings

and insurance

Plan with lower

premium and

longer term

Newly married Insurance and

savings

Term Plan with ULIP

or traditional with

15th

year maturity

Married with a child Insurance, savings

and child’s higher

education plan

Term plan with ULIP

or traditional + child

plan

35 -45 age salaried Insurance, savings,

investments,

education plan and

pension plans

A pension plan

added with Term,

ULIP or traditional

and child plan

Business man Insurance and

investment

ULIP, Term and

pension

People with short

term income

Limited premium

policies

ULIPs and limited

premium policies

Age between 45-60 Insurance,

investment,pension

Limited premium

policies


Aged above 60 and

retired

Pension and short

term maturity

Single Premium

plan and immediate

annuity plans

People taken home

loan

Plans that can

provide insurance

equal to loan

Loan protector

policies or term

plan

Working couple Equal insurance and

saving plans

ULIP, term or Joint

life plans

This is only a reference. We have to decide the plans according

to our customer’s need. With the help of seniors, we can create

many more tables like this.

Shall we design a sample plan here?

Prospect’s information: Age 37, married and having two children.

His wife is a house wife and the first child is son aged 6 and the

second one is a daughter aged 4. Monthly income Rs.30,000/-,

home loan capital outstanding Rs.7,00,000/-. Total savings

Rs.1,25,000/- current worth of the house is Rs.10,00,000/-.

Monthly maintenance expense Rs.12,000, for education

Rs.3000/- medicines and entertainment Rs.3000/- and for

parents Rs.4000/-. He is already covered for Rs.2 lakhs through a

life insurance plan.

Now we will design a suitable plan for him. To explain him

the life’s need in each stage we need to draw the life chart as

mentioned below.

Age 37 49 son’s 51 daughter’s 57 daughter’s retirement

higher study higher study marriage


Future requirements:

Son’s higher education 18-6(current age) 12 years to go

Daughter’s higher education 18-4 14 years to go

Daughter’s marriage 24-4 20 years to go

Retirement age 60-37 23 years to go

5 lakhs each for children’s education, for daughter’s marriage 10

lakhs and for retirement 25 lakhs need to be provided. So, on

12th

and 14th

year 5 lakhs each and on 20th

year 10 lakhs and 23rd

year 25 lakhs need to come to him. How can we design a plan for

all these needs and what are all the other factors we need to

consider?

First we calculated his financial needs. Based on the

above derivations we need to provide him a policy or a combo

policy that can give him maturity on the said years and the said

amount. The combo plan may contain two child higher education

plans, one endowment or ULIP plan and one pension plan. But

our duty is not over here. We need to ensure all these expenses

are met even if the prospect meets with an unforeseen event

like death. Now let us calculate his insurance requirement.

We need to calculate the present value of money. This

means how much is required to get a maturity of some money in

the required year even if it is kept in bank deposit. Let us assume

the interest rate is just 8%.

In compound interest, with the help of the number 72,


we can calculate in how many years the deposit will be doubled.

For an example, if the rate of interest is 8%, by dividing 72 by 8,

we can calculate in how many years the deposit will be doubled.

The answer is 9 years here.

So, with the effect of the compound interest to get 5

lakhs after 12 years, now we need Rs.2,14,000 approximately. If

we want Rs.10,000 per month for running expenses, we need to

keep Rs.15 lakhs in the bank now. Let us calculate the present

value of all his needs as per the below table.

Need In how many years Present value

500000 12 years 214000

500000 14 years 184000

1000000 20 years 232000

2500000 23 years 460000

Monthly 10000 Now 1500000

So, he needs a life cover of Rs.25 lakhs now to meet all the future

requirements. To protect his home loan, he needs 7 more lakhs

(outstanding home loan amount). As per the underwriting rules,

we can give 15 times of his annual income as sum assured. As his

annual income is 360000, we will not have any trouble in giving

up to 4000000 of Sum Assured. Calculating this value is called as

Human Life Value. The values given here are approximate.

If we are doing these many calculations by considering

many points, there will be clarity in designing and recommending

a plan. In child plans today, the premium waiver benefit is either

optional or inbuilt now. It is a very good option and that meets

the purpose of buying a life insurance plan.


We can satisfy all these needs in a single plan also. For an

example, ULIP plans that offer higher sum assured with flexibility

like partial withdrawal and different investment options can be

made to address all these needs.

We need to perform all these calculations before the

prospect in few minutes. Doing in front of the prospect, you

establish your interest, your skill and you attract customer’s

concentration. The customer will understand the real benefit of

your plan.

Now the plan is ready. Though you have calculated

everything in front of him, review all the points one by one. For

this example,

1. Life Insurance Cover for Rs.32 lakhs from today onwards

is must.

2. Maturity on 12th

, 14th

, 20th

and 23rd

years and the amount

as we discussed earlier.

3. To cover the entire family, a medical insurance plan with

family floater option.

4. To avail all these benefits, an affordable regular premium.

(Longer the term, lesser the premium)

Now he may raise objections or oppose. By handling

them only you can succeed. Prospect’s objections and doubts

need to be handled with responsibility and care.

If you know the correct answers for his questions,

explain. Otherwise, with his permission contact your higher

officials through your mobile and get it clarified. It is better to


clarify there. But, if he asks for some proofs and documents

which you don’t have, you must get back to office and show him

as early as possible to ensure the continuity.

Never hesitate to show any documents or proofs to him.

You can not take a policy without fully convincing a prospect.

Even if you take without convincing him, it will be a lower

premium policy than his actual need or capacity.

Mostly we may have to meet the prospect repeatedly

after the first presentation. It is rare to take the policy in the first

discussion itself. If you happen to meet again, fix the next

appointment there. Ensure the next appointment happens

nearer. Taking longer time may reduce the seriousness you

created and it will be tough to create again.

Do not hesitate to meet him again and again. But, analyze

is there any true reason for postponing the sales completion. We

can understand the fact by observing their facial reactions and

body language.

The fact finding we saw earlier is about gathering true

information before the presentation. The fact finding need to

continue here also to avoid any mislead. Fact finding can happen

in two ways now. One through his statements and another is

through our observations. We may not get the correct replay for

all our questions.

So, we need to compare the prospect’s statement and

our observation. If you are sure that the prospect’s objections or

doubts are true, you can continue to resolve them and follow


him. Otherwise, you need to search for the true reason to avoid

waste of time.

Things we need to do while presenting:

1. We need to present with full attention of prospect.

2. At every stage of presentation, we need to observe the

facial reaction of our prospect.

3. We need to speak by looking at his eyes.

4. We need to continue the presentation after checking the

acceptance of the prospect in each step. For an example,

while explaining that he may require 20 lakhs for his

child’s higher education, ‘Sir, as we discussed, hope you

can accept that you will need 20 lakhs for your child’s

higher education. Am I right sir?’ Here he will express his

acceptance or will express objection.

5. Show the required proofs and documents at appropriate

time. While showing them, keep them in your hands. If

you give them to the prospect, his concentration will go

in to the proofs and you may get struck in your flow of

presentation. But, if he insists to see the proofs, give him

and help him to understand them.

6. Handle your things carefully while presenting. Ensure

nothing disturbs your presentation.

7. After few steps, summarize what you have discussed. This

will ensure the continuity of the discussion.

Summarizing is an important technique to be used while

presenting. For an example, after explaining the importance of

life insurance, savings, children education plan and pension, you


can summarize as, ‘Sir, first we saw the importance and amount

of life insurance required for you. Then the future expenses and

savings to meet them, after that we discussed about your

son/daughter’s (specifying name is preferred) higher education

and its cost, and finally we discussed about the pension you

require for your retirement. Am I right sir?’

Doing this will ensure the continuity and make the

prospect participative in the discussion.

Now we will discuss some more types of designing a life

insurance plan.

Why we need life insurance? A person’s unexpected

death should not affect his dependants financially. He need to

provide a financial arrangement to enable his dependants to

continue the life style he provided when he is alive and also he

need to cover all the loans he took so as his dependants are not

in trouble.

If this is true, do a person require life insurance if he has

good asset over liabilities to maintain the life style? Not

mandatory, if the asset is more than the liabilities and the excess

portion is enough to give the same life style to the dependants,

he may not require a life insurance cover. But, how many of us

are in that situation? Only one or two out of every hundred can

be financially comfortable and this percentage is negligible.

We can calculate the amount of life insurance someone

need with the following information.

1. Prospect’s monthly running expense. (Amount required to run


the family’s basic need for a month) We need to multiply this

amount into 120.

For an example, if a family’s monthly expense is Rs.15,000/-, the

calculation would be 15,000 x 120 = 1800000.

The purpose of multiplying by 120 is to get the minimum

required amount even if the rate of interest is 8% per annum.

Here 8% of 18 lakhs is 1.44 lakhs per year and this is equal to

12000 per month.

2. Total value of liability: For an example, if a prospect has 15

lakhs of home loan, 2 lakhs car loan, 1 lakh personal loan and

35000 credit card outstanding, total value of his liability is

Rs.18,35,000/-. Since we are adding all loans, we need not take

his total monthly installments as liability.

3. Future financial needs: If this prospect has a son aged 5 and a

daughter aged 2, their higher education where the higher initial

cost involved will start at their age 18. That is from now 13th

and

16th

year. We can predict the future value of higher education by

calculating the effect of inflation. If he prefers to put them in

engineering college, now the cost of an engineering course in a

reputed private college is 5 lakhs.

Inflation is an average of 8%. This means in 9 years the

value will be doubled. Approximately after 13 years, he may

need 13,60,000 to put his son into engineering college. For his

daughter after 16 years he may need 18,00,000. But, this money

needs to come as maturity. The present value is still 10 lakhs

only.


His daughter’s marriage will happen at her age 24 (from

now after 22 years). Now the cost of one average marriage is 4

lakhs and after 22 years he may need 22 lakhs. But the present

value of education and daughter’s marriage is 14 lakhs only.

4. Provision for Retirement life: Let’s assume the age of the

prospect is 35. His last child (daughter) will complete her study at

age 22 (from now after 20 years). That time, our prospect’s age

would be 57. He can plan his retirement at the age of 60 (after

his daughter’s marriage). In other words, from now after 25

years, he should plan for his retirement by way of a pension plan.

Now, for an aged couple the monthly expense is Rs.7000/-

provided if they have own house and that is yearly 84,000/-. If

we add miscellaneous expenses, approximately per year they

need 1 lakh. After 25 years, the value of this 1 lakh will be

around 5 lakhs. If they want to get 5 lakhs per year through the

interest rate of 8%, they need to invest 62.5 lakhs. Means, the

corpus amount need to be 62.5 lakhs. But today’s value of this

62.5 laksh is only 8.5 lakhs approximately.

The reason to take the corpus amount’s present value is

his wife need a provision for retirement if he is not alive.

Now let us sum all the present value of his needs and loans.

Provision for monthly expenses 1800000

Total value of loans 1835000

Provision for education and marriage 1400000

Provision for pension 850000


Total requirement is Rs. 58,85,000/-.

Here, I have not added the inflation on hike in expenses because,

as he proceeds to repay the loans, the loan outstanding will

come down and that portion of insurance cover will compensate

the hike in living expenses.

If the prospect is having a plot worth 5 lakhs and other

savings and investments like bank deposits, provident fund and

gratuity is 8 lakhs, the total asset (leaving the home they live) is

13 lakhs. So, the net requirement of Sum Assured is 5885000 –

1300000 = Rs. 45,85,000/-.

Finally, we understand this prospect is in immediate need

of 46 lakhs of life insurance cover. We need to provide maturity

on above said years also. Now I will try to design a plan.

Step 1: For liabilities and monthly expenses, the required amount

is 36.5 lakhs. This should not be disturbed at any situation. So I

will recommend him to go for a term plan worth 40 lakhs.

Approximately the premium for 40 lakhs of Life insurance cover

will be Rs. 12,000/-.

Step 2: Next, I will recommend him to go for a ULIP plan with the

partial withdrawal facility so as to take money on the occasion of

his children’s education and marriage. The present value of these

(that is 14 lakhs) will be offered as Sum Assured under this plan.

Since he takes this plan for a long time, ULIP will have lesser risk

and higher profit. Premium would be 60,000 per year and the

sum assured that can be offered is 15 lakhs.

Step 3: Next is a pension plan with the term of 25 years and the


sum assured will be 8.5 lakhs and the approx premium will be

Rs.28000 per year.

Totally 3 plans and the total premium per year is 1 lakh.

The monthly commitment to protect the entire family is JUST Rs.

8,330 ONLY.

If we plan like this, we can optimally compensate his

requirements. In ULIP plans, longer the term lower the risk and

these plans have top up facility also to increase the saving

portion once the income level is increased.

Purpose of any sale is to satisfy the need of the customer.

Our job is to identify a need or create a need. Without doing this,

however you try you may not get a successful sales completion.

While offering long term plan, you need not worry much

on market volatility. You will get longer renewal commission. But

the challenge here is not many of our prospects agree for long

term policies. To overcome this objection, we need to establish

the increased income of him in the past 10 years. It could have

been multiplied by minimum 4 times as he is aged 35 now. We

need to explain to him that today’s premium commitment of 1

lakh will become very much affordable after few years and if you

explain the flexibility of your plans, you can easily get the sale.

Method of explaining the plans to prospects:

While you are explaining the plan as mentioned below,

he can better understand. Let us see some graphical expression

for the above stated prospect.


Explaining the education and marriage need and maturity as

below. (premium Rs.60000 per year and top up facility)

To explain the pension plan, we can draw as below and explain.

In pension plans with life cover, in case of the death of the

insured, the minimum guaranteed money given to nominee is

insured amount (here 8.5lakhs). After starting the pension,

depending on the pension plans selected at age 60, the nominee

will receive benefit.

To explain the fund value growth and effect of partial withdrawal

we can explain as mentioned below.

Now son’s daughter’s daughter’s

15 laks cover education education marriage

13 15 22 years

Age 35 age 60

F U

N D

Premium paying period pension receiving period


Explaining with graphs like this has two advantages. 1.

Prospects will understand easily as it is explained visually. 2. We

can explain step by step without confusion.

Take a training of drawing graph like this for 15 already

met prospects to become fluent and confident. Here the

maturity, premium and other calculations are mentioned

approximately.

You need to calculate them exactly according to the

product and benefit illustration which gives maturity with 6% to

10% interest as specified by the regulator. All the above

illustrations are only examples for you to understand and that

will not represent actual scenario.

While presenting like this, you may come across

objections and doubts. If you know the solutions and answers for

them, clarify there. If you don’t have an answer or solution, with

the permission of the prospect call your higher officials from

there and get him the right solution.

Now son’s daughter’s daughter’s

15 laks cover education education marriage


Now, the prospect may be in three different moods. 1. He

may not be ready to take the policy immediately for some

reasons. 2. He might think to take the policy latter after

consulting and analyzing. 3. He may take the policy immediately.

Last two decisions are favorable to us. But, even if he takes the

first decision, we need to follow. Some day he may take a

favorable decision.

Proposing to complete the sale:

If the prospect expresses the interest on taking this

policy, we need to gently propose for sale. First calculate the

exact premium and ask him how he wants to pay (either through

draft or cash). This is an important stage. We should not do any

mistake here. If the prospect asks for some time, politely ask him

why he needs the time. Another way of proposing for sale is to

give him the proposal form and request him to help to fill that.

These two steps are successful proposing methods two complete

the sale.

He may immediately oppose for sale and he may ask

time. The reason may be anything of time to prepare money, to

take decision to buy, to consult some one or it can be anything.

You can plan your next move only if you know the correct

reason. While asking how he wants to pay, if he says a mode of

payment as cash or draft, go to the next step of filling up the

proposal form. Ask him the important details and not them in

the proposal form. While filling up the proposal, if he co-

operates 90% sales is completed. Only you need to collect the

money and proofs. If he shows any objection or if he disagrees to


take the plan immediately then politely ask him the reason. We

can easily handle objections. We will discuss about handling

objections latter.

Though proposing to complete the sale is the final step to

get the sale, it often helps us to know the prospect’s mind status.

Many prospects tend to go to a defensive mode once we take

the proposal.

But, proposing to complete the sale will give us a clear

note to further actions and proceedings. So, be happy even if you

get a negative reaction because you are not rejected and the sale

has just postponed.

Understand there are many factors influencing a prospect

to take a policy. Only he knows to give priority. In this stage, if

you force the prospect to take a policy he will be irritated.

Sometimes the pressure we give on prospect to take a policy will

force him to disconnect us completely.

As we discussed earlier, most of the prospects will not

accept for immediate sales completion. There may be any reason

for repelling. The only few prospects will tell you the actual

reason for not accepting or postponing. Most of the prospects

will say some other reason only. These reasons for not buying or

postponing are called objections. These are the expressions of

prospect’s thought. We need to confidently handle these

objections.


Stages in Presentation:

Interested

Preparing before

meeting

Introduction and

beginning

Brief about the

purpose

Collecting

Information

Presenting

Proposing for sales

completion

Completing Sale

Service after sales

Not

interested



Selling life insurance plans without handling objections

will happen once in hundred occasions only. So, expect the

objections always. Objections are of two types. 1. Sincere

Objections. 2. Insincere Objections.

1. Sincere Objections: In general, these types of objections are

due to the lack of confidence about the plan or organization or

want of money or even to get consultation from others. We can

handle these objections by our sincere approach and with the

help of our higher officials. Objections about the plan may come

due to lack of some aspect which he expects or his wrong

opinion about something our plan has. We can handle this

objection by highlighting other strengths and clarifying his

concern. Sometimes the objection can be also due to

misunderstanding. Whatever it may be, handling sincere

objections are very easy. We need to have patience and ability.

2. Insincere Objections: If your prospect wants to avoid us by

telling some reason which is not true is called insincere

objection. The only way to handle this objection is to

continuously follow him and create a good relationship with him.

Insincere objections are coming because the prospect is not

interested to tell you the fact. Sometimes this may happen when

the prospect is not interested to hurt you also. So, we need to

give due respect to any kind of prospect’s objection. Your focus

should be only on to completing the sale.


To handle objections there are many methods are

available. There are Frequently Asked Questions and answers for

them also available with each company. Memorizing these will

not practically help us in all occasions. I would like to

recommend few methods by classifying the objections into few

groups. By understanding and practicing these methods, we can

easily handle objections. Unexpressed objections can be

understood by us only by experience.

Types of objections and methods of handling them:

1. Misunderstanding: These types of objections are due

to the misunderstanding of the plan or a part of a plan. It can be

anything like the rules of the plan, company, safety aspects, and

possibility of return and so on. To handle this, we need to show

him required proofs and documents. Commonly this kind of

objection is sincere objection. Meeting the prospect along with

higher officials will ease the situation to handle this objection.

But, the prospect may not express it sometime. To bring his

objection, conversation and observation is very important.

2. Lack of confidence: This type is the suspicion or lack of

confidence of the prospect about the plan, benefits, organization

and safety. To handle this objection along with showing the

proofs and documents, we may show the example of existing

customers. The first type is misunderstanding and this one is

suspecting. To handle this we need to work harder than the first

one. Through regular follow up and continuously showing the

proofs can erase this objection.

In the year 2004, we met a government engineer. He was


expressing his doubt by postponing the sale. After few

discussions, I understood the reason for the postponing is lack of

confidence. Then I gave my company’s web site address and web

links to know more about the plan and benefits. He liked this

approach but he took few days to get back to us. After a week he

told me that he didn’t see that.

Then, I met him in his home with his permission and

showed him all the details in his home computer itself. I showed

him about IRDA and their rules and regulations also in his

computer itself. After understanding them, he took four policies

covering all his family members on that day. I understood after

this event that I can enjoy the full benefit only if I give enough

time to the prospect and prospect will not agree for sale without

clearing his doubts and objections.

Prospect will agree for sale only when he is comfortable.

3. Drawback: This type is considering a feature in our plan as a

drawback. For an example, mandate to continue the premium to

keep the policy in force may be a drawback according to the

prospect. Deducting mortality charges also can be a drawback

according to the prospect. We can handle this type of objection

by two ways.

If he is very strong against the drawback, we can recommend

another plan without that feature or we can strongly highlight other

features and benefits and request him to ignore the feature he thinks

as drawback. Normally consumers are adjustable when the other

benefits are really good. Even after highlighting if the prospect is not

satisfied, you can recommend other plan. After expressing the


drawback type of objection if you immediately jump into other plan,

the prospect will not get confidence about you. So, it is better to do

homework to select the best suitable plan to the prospect as we

discussed before. Initially we may not have this ability. We can

approach our higher officials and seniors to help us and that would be

safer. Even though completing sale is our main focus, we need to do

that without compromising on ethics.

But few prospects may project the drawback very strongly to

avoid you (insincere objection). The only way is to follow him with

patience.

4. Feeling Unwanted: In general many of us think (unlike western

people) life insurance is not mandatory. We know death is certain and

it is uncertain. Only very few understand that can happen even to us.

Feeling Life Insurance or our plan or some features of our plan

as unwanted. This is different from drawback or lack of confidence.

Drawback is lighter version of feeling unwanted. In other words,

drawback means feeling that the benefit may be reduced by having a

feature. Unwanted is feeling is completely rejecting the plan or

feature. To handle this objection, we need to get his approval of how

many other features are liked by him. If more of other features or

other benefit of our plan is liked by him, we can request him to ignore

this unwanted feature. For an example, if a prospect feels it is

unwanted to have life insurance plan we can highlight the tax

exemption on paying premium as well on maturity. The stronger we

highlight these points we can close the sale. If a prospect rejects the

non-guaranteed ULIPs, we can show him the past growth records,

future possibilities of growth, transparency and flexibility very strongly

and propose to accept.


Though we have identified four types of objections and found

the methods of handling them, we need use our presence of mind to

handle them. Sometimes the techniques can fail as our customers are

very clever. But, your perseverance and sincerity will sure get you the

sales.

In general, in business we call as Sales Closing. But, I

mentioned as Sales Completion often because in life insurance a new

and long term relationship is beginning after the sale. Our prospect

needs us very much after the sales for service. Sure this is a beginning

of a long relationship.



As we saw earlier, the prospect will take enough time to buy

our plan. He has full rights to do so. He can take a favorable decision

only if we have patience. Even after presentation and handling his

entire objections the prospect may postpone the sale for many

reasons. At this juncture, we need to follow him with complete

tolerance and confidence. Following is not meaning that going behind

him always. We need to continue to open sales calls with more

prospects to be successful. We need to keep in touch with him to

remind that we have proposed a plan and we are willing to serve him.

After each presentation, we need to complete the sale or to

ensure the next appointment. We need to finalize what we need to do

in the next presentation before closing each presentation. We need to

conform to the prospect the things we need to show, things we need

to clarify or things to remind after each presentation. Only by doing

this we can get the benefit for our efforts.

In many occasions the prospect will simply say, ‘let us meet

after sometime’. But we need to conform when, where and what

details and proofs we need to bring to meet him next time. After this

conformation only we can do a meaningful follow up.

Following will test your tolerance. For life insurance agent

tolerance is important. The sales process was looking easy till

presentation. It will now create a different mindset in you. Few

prospects will cooperate with you well and give you proper further


appointment. It may look like the prospects are purposefully delaying.

In fact it is not his intension to do so. But the real fact is that he is not

yet mentally prepared to buy your plan or your plan is not yet

attracted him. So, following is very important stage of sales process.

Techniques of following:

1. Following through telephone: As we saw earlier, speaking through

telephone is an art. Now our prospect is aware of us and our intention.

So, we need to keep two things remembered always. 1. You should

keep in touch with him to remember you. 2. You should look for a right

opportunity while following and exactly use it.

While following, don’t hesitate to remind and to propose for

sales completion. Please remember the earlier discussed things in this

book regarding what time we can call a prospect and we should call

them without troubling them.

If any celebration or a function comes, wish him and keep

reminding him about you. By doing this, he will not forget you when he

is prepared to take a life insurance plan. As we discussed earlier collect

maximum information while presenting.

In his family, someone’s birthday or anniversary may come

nearby. That would be the best occasion for us to concrete our

relationship. While each meeting or conversation, ensure you move at

least a bit close to him. You can not sell life insurance without selling

you.

2. Following by meeting in person: We need to do this method

carefully. We can meet the cooperating prospect with permission.

Whenever he calls you, meet him without hesitation because

behind each satisfied customer, there are hundreds of customers are


there. We need to keep in touch even with prospects not showing any

interest. A real sales man will not waste any of his efforts. Meeting this

type of customer in person without permission will give a negative

reaction.

But you can use the opportunities of greeting him or wishing

him. A small gift on important occasion will bring a change in him

about you. Why we need to do all these? In life insurance sales, your

face value is very critical.

3. Following through other media: We can use this method to all

prospects. Importantly to keep the uninterested prospects in touch

and to create a good impression about you, this method is very

effective. Other media means SMS, email and letter and so on.

We may get unexpected benefit through this follow up. If we

have missed to create a good impression while meeting, we can

change through this type of follow up. The results are not immediate

by this process. It may take a long time too. After following or

reminding through this process for few times and then meeting in

person will create a good environment for business discussion.

While approaching and presenting we need to follow some

discipline. If he is a prospect, he is a respectful person irrespective of

your relationship with him. We need to keep the decorum in our

speech and action.

A suitable case study for this occasion, in the year 2003 I went

to meet a prospect along with my agent. The prospect is the son of my

agent’s close friend. He knows the prospect from the childhood. With

the old memories of the prospect being a small boy, my agent started

speaking with authority. The prospect seemed to be accepting our plan

but he was brilliantly avoiding the sale. After one week, I came to know

that he took a policy with our competitor through other agent for 2


lakhs of premium. I didn’t share this with my agent. I didn’t get that

sale but I got a lesson.

While approaching or presenting, behave well and follow the

steps we discussed. There are many prospects have become family

friends who hated their agents initially.

We must do the following as a regular duty. There is no loss or

harm in following. If we miss to do a close follow up, someone else will

harvest the benefit of our effort. We approached one Mr. Noordheen

in Trichy during the year 2004. Somehow we didn’t get the sale. He

kept postponing things and finally our sales manager and agent left

asking insurance policy from him. But I continued the relationship with

him and I was in close contact with him. After 6 years, in the year 2010

April, he took two policies. This business came to me only by the 6

years close contact. If we keep meeting people without following, only

we waste our energy nothing else can happen.



This is the climax of the entire show. The most anticipated

event is happening now. The factors affecting a sales completion are

many. For example, current financial status of prospect, expenses that

are coming in near future, other people in that place, that day and his

health condition and like this anything can influence the sales

completion. Without loosing our heart we need to continue to get the

sale.

The first sale to a prospect will take more time. But if we serve

him better, further selling will happen very easily. We were waiting for

this moment. Our strategies, approaches and follow ups were only

towards this moment.

This is happening only after the prospect has decided to buy

our product. We should be responsible now. Even a small unwanted

speech can disturb or reduce the premium or even disconnect the

process too. Sometime we may not understand the reason for sudden

change in prospect’s move.

The reason I am mentioning this here is our prospect will be

very careful now. We should also be like that. Sometime if the

prospect is giving a premium that is much lesser than his capacity may

behave normal and relaxed. Mostly this premium will be given for the

face value of the agent or to satisfy us. In many occasions we

completely satisfy the prospect after handling many objections and

take a sale. Even the rich man will not invest unless he is benefited.

During the sales completion, prospect’s mood will be in an elevated

state than his normal.


In the year 2004 I went for the sales completion with a

business man. My agent accompanied one common friend of the

prospect and agent. After a successful discussion, the prospect called

his secretary (he called her to check the availability of cheque leafs). In

that time gape, the common friend started talking about one

unwanted event happened to the prospect and expressed his

sympathy. The prospect started speaking about that event in an angry

voice. The prospect became tensed and started blaming the people

who did against him. Finally the secretary entered his cabin and he

ordered four cups of tea instead our cheque.

That is why I stressed to avoid unnecessary discussions during

sales completion.

Things we need to do during sales completion:

1. Keep a fresh proposal form

2. You must have the necessary stationeries. Pens 2, pencil,

stapler, gum, rough sheets are some main stationeries you

must always keep in your bag. Don’t ask anything from the

prospect.

3. Collect necessary proofs and documents there. Delay may

even spoil the sales.

4. If you need to take photo copy, you take them in nearby shops.

Don’t expect your prospect to give you latter.

5. Don’t leave anything for tomorrow.

6. Try to control your speech during sales completion.

7. Don’t give too much of pressure to increase the premium. This

also may spoil the sale.

8. After doing all documentations explain the prospect when will

you give the receipt, when the policy document will reach him,

if medical checkup is expected to come, tell him when he has

to undergo medical checkup and keep your words honored.


9. Submit the proposal form in the office as per the procedure

and ensure he gets the policy document in time.

10. After the customer receives the policy document, meet him

and explain him that the features you explained are printed in

the document. Again make a summary of the plan you offered.

This will increase the confidence he has on you. If he is happy,

he will give many references. Reference means the prospects

introduced by your happy customers.

11. After explaining the policy document, ask for references

without any hesitation. Only by asking references, you can

reach the unknown people. If you do all these, you will sure

get the references. I have personally experienced this.

In the year 2004, I met only NRI prospect along with my agent.

After many discussions, he gave only Rs.5000 as premium. After

experiencing our service, he was very happy with us. Within the

next 8 months, we collected 8 lakhs of premium from him and

from his references. Asking references is like breathing in this

profession.


Many of us are thinking that there is nothing important to do

after the sale. This is not like other selling. A food vendor in a railway

station may not have any further relationship with his customer after

the sale. As I mentioned earlier, in our business, sales completion is the

beginning of a long term relationship.

The Guinness record holding salesman is Mr. Girard. His

success secret is called as Girard law of 250. As per this law, each of us

is closely associated with minimum 250 people in our normal life. By

satisfying one customer, we have all the possibility to access his 250

contacts. I strongly accept Girard law of 250.

After the sale, keep in touch with all your prospects. Do the

help if you can and become a family friend. Even if he is unable to give

you further business or reference, he will sure speak well about you.

Don’t dos after the sale:

1. Don’t change your mobile number often. This will make most

of your prospects to go away from you. If you change, ensure

all of your prospects and customers are informed. By doing

this, your contacts will not be lost and you will gain good

name.

2. Never miss the call of your customer. If you were unable to

attend the call, call him back.

3. Don’t switch off your mobile phone frequently.

4. If your customer wants to meet you after the sale, show the

same interest that you showed before the sale.


5. If the customer is having any problem with the plan or

features, don’t hide. If you ignore or hide, the problem will be

manifold. If you meet with confidence, the problem will vanish.

No one can accept the irresponsibility.

6. Show the same politeness, speed and interest even after the

sale. As for as this business is concerned, the customer

believes you and your service. If you change your approach or

behavior, it will make your customer worried or irritated. If you

were honest during the sale, this problem will not happen.

The strength of life insurance business is long term earning.

Good things will spread slowly. Even simple mistake will spread fast

and magnified. If we want to do this business, we need to be clear and

honest. Agents without these will go out of this business fast.

The information, concepts and strategies shared in this book is

not my experience alone. I got them from hundreds of people by

discussing with them and observing them. I strongly believe this book

will be very helpful to you.

There are many agents doing a better service after sales. Their

income is increasing day by day without any hassle.

I would like to take the example of one successful agent whom

I know. Her name is Mrs. Umadevi Sukumar. Mr. Sukumar is her

husband and they both jointly do this business in Trichy. They

represent a private life insurance company since 2005.

They both do this profession as their main source of income

though they have few other business and investments. They have good

friends and relative circle in Trichy.

Since the time she started this business, she always speak

about achieving big things in this business. In the first year they


became Million Dollar Round Table (MDRT) member by sourcing

business from their friends and relatives. They became the regional top

agent of that company and they achieved MDRT in the second year

also.

3rd

year, they missed this title with a small deficit in premium.

But they achieved this title on their 4th

year by a clear plan and hard

work. To become an MDRT, each year we need to source around 30

lakhs of regular premium.

They have done many more achievements and gone many

foreign countries through company contests and reward systems. How

they are able to do this top class business continuously for four years?

The answer is very simple.

1. They spend time to this business everyday.

2. With everyone they meet, they discuss that they are life

insurance agent and share their achievements.

3. They keep their entire policy holder’s (customer) information

ready with them.

4. They keep the list of left out people also ready with them.

5. They always keep in touch with their customers by calling and

meeting them.

6. After the policy document reaches the customer, they meet

them with a quality file to keep the document and explain

them once again about the features and benefits.

7. They never miss any function and celebration of their

customer.

8. They help their customers other than insurance also if they

can.

9. They have membership in the city’s important clubs and

actively participate in their activities.


10. Every day they add new friends to them.

11. Regularly they update their customer’s fund value or bonus

value in a separate diary and inform when asked by the

customers.

12. Before the maturity comes, they update it with their

customers and give them a good service.

13. They never miss any training program organized by the

company.

14. They frequently visit the branch office and update their

knowledge.

15. They give first priority to customer’s benefit and keep their

benefit after that.

Once again read the above mentioned 15 points. If you follow

these points, Success is Easier.

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Life Insurance Selling Guide-English

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