This is my opinion, take it for what is worth. As a disclaimer, although I have written life policies completely by phone/email, it is not a business habit I focus on. Still, I think that if you want to focus on life insurance and sell it completely or almost completely be phone, you will be putting yourself at a disadvantage for long term earnings in the future.
Especially if you are selling term insurance, the renewals are low to non-existant. The renewals in term insurance are "term conversions" down the road. Although you can call the people who bought each year to bring up conversions (assuming you are selling carriers that offer good conversion options, which is going to be more difficult if selling internet leads and you're in a price competition), it is going to be much more difficult to convert policies without knowing their financial situation and having as much of a relationship.
Face to face, if you do it properly, gives you more access to referrals, more opportunities to probe for others areas to help, and increases your access level the next time around. No one wants a term policy or a permanent policy, they want what it can do for them. It much more difficult to position the life sale and do what is in their best interest without having a full conversation about what they are looking to accomplish. Good luck doing that on an internet lead!
I think someone selling F2F, even if they sell fewer policies up front, will make way more money in the long run:
1. You will be building a local clientele, statistics show 1/5 of your client base will buy something new each year. There is no way you can accomplish this with internet leads.
2. Selling higher premiums. By stopping out and getting a feel for what your client is trying to accomplish financially and what they have currently, you are in a much better place to position what you have to offer. A win for the client, a win for you in terms of larger premiums and a stickier clientele. You'll have many more opportunities to upgrade your markets as time goes on as well.
3. Easier to get introductions to others. Not saying you can't get referrals selling over the phone, but it will be much more difficult.
4. As you expand your product offering beyond just life and disability (if you don't from the beginning), a local clientele that knows you, likes you, and trusts you will be much more profitable.
5. With phone sales, I would suspect you will be selling mostly term. Nothing wrong with that, many times it is the customer's best option anyway. However, as stated above, little to no renewals. You will always be chasing your tale looking for a new sale to put food on the table. By client building, the renewals come from the term conversions, DI/
LTC sales, annuity, and securities sales.
This is targeted at someone coming in with no client base wanting to focus on life sales over the phone. If you are a P&C agent that wants to sell to current clients or a health agent cross selling your current book, then disregard. If you are a life focused agent building a book off of internet leads and phone sales, you can make a living, but like I said above, I believe you are short changing yourself in the long run.
Old fashioned "see the people" mentality combined with a client building focus will produce results. They may be out there, but I have never met a life insurance focused agent writing business at a high level by selling exclusivley over the phone (I am not saying it would be impossible). Imagine how much easier life would be if you spent the next 10 years building a local clientele of 500 active clients who know you, like you, and trust you rather than the next 10 years calling internet leads and having to start at square one each day.
Selling Life by Phone Questions
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