Description:

Selling insurance to seniors requires a slightly different approach. Here’s what you need to know.

Selling Insurance to Seniors: The Only Guide You Need

The senior population accounts for 16.9% of US residents, increasing to 22% by 2050. It’s a fast-growing market worth cashing in on while serving a vulnerable community in the process.

That said, selling insurance to seniors is not a task to take lightly. And in this article, we’ll review some key points to keep in mind when approaching potential senior clients.

Why Sell to Seniors?

Suffice it to say, most seniors are in retirement mode and are more likely to have more disposable income. That means they can be willing to pay more for well-priced products, making them a lucrative market to target.

Additionally, seniors have aging bodies and are more likely to require more health care and assistive services. Providing seniors with the coverage they need—whether it’s long-term care or Medigap insurance—will help ensure they’re taken care of later in life.

Lastly, they’re available.

Due to age, most seniors have finished their careers and have extra time to spend. That makes them an ideal demographic for insurance agents who want meaningful connections and conversations.

Choosing the Right Niche

When deciding which products to offer to seniors, it pays to research the various niche markets available. If you can find an underserved market of seniors, you may be able to provide them with a much-needed service with low saturation.

The most popular are:

• Term life insurance. Used for coverage for a limited period, often for a specific purpose such as paying off a mortgage or providing a financial cushion for the family.
• Final expense. Covers funeral costs—can provide a much-needed service for those without the finances to pay for their own or their family member’s funeral.
• Whole life. Whole-life policies are designed to provide coverage for the entire life, and some policies include an additional death benefit.
• Universal life. Universal life provides coverage offering an investment aspect and lifelong protection.
• Life insurance with a long-term care rider. This type of policy combines long-term care insurance with life insurance, offering the broadest range of coverage.

Understand Why They Want Insurance

Senior citizens want insurance for a variety of reasons. Some may need coverage to supplement dwindling retirement funds, while others may be seeking a way to pass on an inheritance without incurring a hefty estate tax penalty.

By understanding their needs, you can provide them with the right product geared toward their specific goals. For example, if they’re mainly looking to cover long-term care, you may want to offer them a combination life insurance with long-term care rider.

After all, seniors aren’t all the same; their needs will vary depending on their financial standing, family circumstances, and health conditions.

Making the Sale

Next, we’ll outline proven strategies for selling insurance to seniors.

1. Optimize Marketing for Specific Situations

When marketing to seniors, it pays to focus on the bigger picture. Explain why having insurance coverage is essential in the golden years, highlighting the value it brings to their retirement planning and the circumstances surrounding it.

For example, you could target specific products to those with retirement-age children, high-net-worth individuals, or those with specific conditions.

2. Create Accessible Content

When crafting your marketing material, create content that’s easily accessible to seniors. Avoid industry jargon and use industry-specific communication in its place.

Also, keep in mind that seniors may have hearing or vision problems. As a result, they may benefit from larger materials or in a different format, such as an audio call or video.

3. Meet in Person

Because seniors aren’t generally tech-savvy, meeting in person can be a more comfortable option. It’s also a chance to build trust, answer their questions and address any concerns they may have.

When meeting, focus on the individual’s particular circumstances. Show that you’ve done the research, and help them understand the value of their policy by showing them how it will benefit their family.

Be sure to dress well, too.

Showing up in a suit—not a shirt and tie—will add an extra layer of professionalism and help the senior feel at ease. Many seniors are wary of scammers targeting the elderly, and meeting in person takes the guesswork out of the equation.

4. Make Things Simple & Straightforward

As we mentioned earlier, technical terminology should be kept to a minimum. Seniors have different experiences and may not immediately understand terms or words they’re not familiar with

Strive to make the policy as straightforward as possible. Explain every element, and make sure they understand what they’re buying.

For example, if your agency requires a medical exam, explain the exam and why it’s necessary. Put senior clients at ease by emphasizing that their data will remain confidential.

5. Ask the Right Questions

Asking the right questions can make all the difference. Seniors may not be familiar with certain types of insurance, so you’ll need to ask specific questions to get to the heart of their needs.

Ask about concerns related to health, family, and financial situation. And, if you’re still unsure, asking for clarification and repeating what you’ve heard will help ensure you’ve understood the senior’s needs correctly.

If they already own a policy, find holes in their current coverage and suggest ways to fill those gaps. For example, if they have a term policy, suggest a whole-life policy to cover them for the rest of their life.

6. Stay Close & Be Personable

Older adults grew up in a different environment than other generations. As a result, they’re more likely to respond to a personal touch and appreciate a friendly conversation.

It’s essential to stay in touch after the sale. Send them occasional cards, letters, or even a small gift—like a bookmark or a notepad. Doing this will help keep them in tune with your agency and help them remember you.

It’s about building trust and demonstrating that the relationship doesn’t end when the sale is made.

7. Be Clear & Concise

It’s vital to explain the details of the policy in simple language. Avoid using industry jargon and stick to clear and understandable explanations.

Be sure to provide seniors with a copy of the policy clearly stating what is and isn’t covered. That way, they can refer to the document for clarification if and when they have any questions.

8. Understand the Emotions Involved

Talking about one’s mortality can evoke many emotions, such as fear, sadness, and anxiety. It’s important to recognize and understand these emotions, as they can create barriers to a successful sale.

Be patient, listen carefully, and allow the seniors to express their feelings. You can even suggest resources or support groups for those facing mortality-related concerns.

By acknowledging their emotions, you can demonstrate you understand and empathize with them, helping foster trust and a positive relationship.

I Made the Sale—Now What?

Congratulations! You closed the sale—now it’s time to cement the relationship.

Start with a “thank you” note. This can be a simple card or a more elaborate gift, such as a photo of the senior surrounded by their family. And depending on your budget, you might even include a small token of appreciation (like a gift card).

Be sure to follow up with the senior periodically—even something as simple as a birthday card can make a big impact. Finally, offer the senior an incentive if they refer your business to their friends, family, or acquaintances.

Upgrade Your Skills with Insurance Bob

Following the tips outlined in this article, you can successfully sell insurance to seniors and help them secure their financial future. Seniors are a key demographic and are more likely to respond to a personal approach.

Remember to be clear, concise, and patient when discussing the policy and the circumstances around it. Do your research, optimize your marketing material, and never be afraid to ask the right questions.

Finally, when the sale is made, don’t forget to acknowledge their trust in you by sending a thank you note or a small token of appreciation.

Before you go, consider joining our free 20-day Insurance Bob course for in-depth guides and resources to help you upgrade your insurance sales skills. You’ll learn industry best practices, tips to maximize sales, and other crucial information for success with any demographic.