The uncertainty of life has always kept everyone in anxiety. Man would always wonder about the future. am I safe from unseen dangers? is my family protected? What if something wrong happens in life? Such burning questions have always been a center of discussion until the insurance was conceptualized.
Amidst covid 19 this uncertainty has reached a new level. People have lost their health, wealth, family, and possessions. This pandemic has made people cautious about potential dangers and risks.
But does this anxiety and uncertainty have a solution? Yes, having insurance!
Insurance gives people mental peace. It provides clients with the freedom to enjoy each moment without the fear of damage.
What is an Insurance and Insurance policy?
In simple words insurance is the safety from financial losses. It is a kind of risk management from potential damage. An Insurance policy is a contract between client and insurance company that explains the terms and conditions of insurance. It explains the support the company will provide the client.
Why should people opt for insurance policies:
people should be educated about the advantages of the insurance policy. It is very important to create awareness about how risk-free one can live with insurance.
In 2019, according to a survey, 43 percent of Americans have no life insurance policy.
It is still considering a luxury and people mostly have a “this won’t happen to me” attitude.
The insurance companies should arrange seminars and awareness programs where people can be guided about different policies and their uses.
People should know that
- Being insured gives a sense of security. It lets you enjoy all happy moments peacefully.
- Since the emergence of coved 19, things have become extremely uncertain. This pandemic has brought a constant risk of Unemployment, sickness, and death for everybody. It is a high time people should have insurance.
- Insurance protects your financial assets as well as your loved ones. people can drive carefree, travel to their favorite destination, get medical check-ups without any worry.
- It helps in managing risks. Buying an insurance policy means, exchanging the cost of a potential loss with an insurance fee. This is called a premium. Companies utilize these fees to people’s benefit and provide them at the time of claim.
Types of Insurances:
There are several insurances available but the most common insurances are
Disability insurance:
This type of insurance covers long-term and short-term disability. Short-term disability covers sudden injury or illness. While long-term disability insurance will cover income replacement if a person becomes unable to work.
Life Insurance:
Life insurance is one of the most common types of insurances. It is a contract between the client and insurer and guarantees that money will be paid to insurance policy holder’s recipients. But the trend towards life insurance is slowly declining due to people’s confidence in their income rather than having insurance.
The life insurance premiums only had a real growth rate of 0.2% in 2018. (Capgemini)
Health Insurance:
Sickness and health both go hand in hand. Health insurance covers health expenses and has proven to be very beneficial during this pandemic.
Homeowner insurance:
Homeowner insurance provides with safety to cover your expenses if something breaks or tears off in the house. It proves to be very helpful for people when they want to sell their houses.
Automobile insurance:
The level of unseen danger and risks is endless on the road. Automobile insurance prevents the tension and anxiety a person can have while driving. Depending on the policy, it covers all or partial damage to the car.
Selling Insurance policy:
Selling an insurance policy is like a small business. You need to know the potential of your clients and their needs. There are endless possibilities and clients available from Big companies with huge employee bases to small setups with a lesser number of employees.
Insurance is becoming an important incentive given to employees and presently It is the need of time. Just like any business, selling insurance policies also require research, observation, and skills.
- It is always advisable to do your research. Focus on one target market for best results.
- Research what your competitor companies are targeting. There are many markets but you can build a good relationship based on trust in a place that is least targeted.
- Having a least targeted market would prove to be more beneficial because of the low competition.
Potential target markets:
There are many target markets for insurance sellers but the following markets prove to be extremely fruitful and beneficial:
Skill Specialists:
A skilled specialist is a professional who has expertise in a specific skill. Doctors, medical staff, engineers, skin specialists, etc. all fall in this category. Amid coved 19 doctors and front line medical staff is at a constant health risk. It would be their utmost priority to be insured so that they don’t have to worry about the financial aspects.
As an insurance policy seller, you should meet skilled specialists and persuade them about the advantages of having insurance and provide them with good policies.
Businessman:
The potential risk of financial loss is eminent in business. During this pandemic, it can be seen how many big and successful companies closed down due to economic losses. A businessman would do everything to secure his assets. so, targeting him and selling your insurance policy can be very productive
Executive Employees:
Executive employees can be a good target market. Companies and firms always want to keep their Executive employees contended. They would never want to lose a skillful employee. Companies would easily get their executive employees insured.
Landlords:
Landlord insurances are for people who own properties. Such insurances are expensive because rental properties have a high rate of claiming damage than permanent residents. Due to a lack of cost-effectiveness, this market does not have potential.
Small employees:
Small employees and businesses lack finances. They do not prove to be trusted clients for insurance companies because of a shortage of money and an uncertain attitude.
