Steps for insurance advisor how to sell term insurance plan

Steps for insurance advisor how to sell term insurance plan 

insurance advisor with client

    Term insurance plan  effectively involves understanding your customer's needs and recommending a trusted insurance company that provides **maximum benefits at a good premium**. Here's a step-by-step guide for you:

- How to choose Term Insurance Plan

✅ 1. **Understand the Customer's Needs**

Ask these key questions:

* What is their **age**?

* Are they **married or have dependents**?

* What is their **income and financial goal**?

* Do they already have any insurance?

* What is their **health status**?

 ✅ 2. **Educate the Customer**

Explain:

* What is **Term Insurance**: Pure life cover with no maturity benefit.

* Why it’s important: Financial protection for family in case of the breadwinner’s death.

* Difference between Term Plan and Investment Plan.

✅ 3. **Calculate Right Coverage**

General Rule:

* **15x to 20x** of annual income.

* Example: If income is ₹5 lakh/year → Cover should be ₹75 lakh to ₹1 crore.

Use free calculators from:

* Policybazaar

* Coverfox

* InsuranceDekho

 ✅ 4. **Compare Plans**

Focus on:

* **Premium** vs Coverage

* **Claim Settlement Ratio (CSR)**

* **Add-ons** (Critical illness, Accidental death)

* **Policy term flexibility**

* Online vs Offline options

🏆 Best Companies Offering Term Insurance (2025 India Update)

 ✅ **Legend/Key:**

* **Max Coverage**: Approximate upper limit; can vary by profile.

* **CSR (Claim Settlement Ratio)**: Higher is better; means more trust.

* **Add-ons**: Optional extra protection, often at small extra premium.

* **Online/Offline**: Whether available online (DIY) or needs agent support.

## 🎯 Selling Tips to Convert Leads

### 🧠 Know the Product Well

* Prepare comparison sheets

* Understand IRDAI guidelines

### 💬 Build Trust

* Speak in local language

* Offer examples: “A ₹1 crore cover at just ₹500/month”

### 🗣️ Handle Objections Like:

* **“Mujhe kuch nahi hoga”** – Remind them: *Insurance is for “if”, not “when”.*

* **“Return nahi milta”** – Explain ROP (Return of Premium) options.

* **“Bahut mehenga hai”** – Compare with cost of family expense without insurance.

### 💼 Close Like a Pro

* Help them with documentation

* Do online KYC together

* Show premium benefit by buying early

## 🛠️ Tools That Help

* **PolicyBazaar / Coverfox / Ditto Insurance**: For comparison

* **IRDAI website**: To verify companies

* **CRM apps** (like Leadsquared): Manage customer contacts

* Custom **sales pitch**

* Comparison infographic

* WhatsApp/Instagram **story template for lead generation**

Comparision table of 

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