10 Insurance Interview Questions and Answers

Whether it’s a car accident or a natural disaster, insurance helps people and their families recover from the unforeseen. If you prepare smart answers to the insurance interview questions outlined in this article, it could be you who’s lending a helping hand.

When you work in insurance, you’ll enjoy good pay and room for advancement (e.g., insurance manager or underwriter). Insurance sales agents typically earn up to $86,277 per year or more—depending on how much you make in commissions.

What can you do to make the most of your insurance interview? Below, we outline tips for answering common insurance interview questions and provide sample answers, so you’re prepared for the unforeseen before meeting with a hiring manager.

Insurance Interview Tips

Before you jump into answering insurance interview questions, here are some tips to help you perform your best:

• Brush up on the insurance industry: Visit competitors’ sites, research current trends in the insurance industry, and find out what will likely influence the market.
• Create a 60-second sell: Highlight your five best selling points to sell yourself within one minute.
• Discuss your selling prowess: Talk about how you’ll reach sales goals and excel as an insurance sales professional.
• Find out what your job will entail: Will you spend all your time in the office? Will you be meeting with clients? Filling out paperwork? Working late? Study the job ad or research other insurance positions to find out what you’ll be doing all day.
• Come with your own questions: Ask your own questions to show your interest in the employer and determine if the job is the right fit for you. You might want to ask about turnover rate, training and development, and tech support.
• Don’t talk about your salary expectations: Until the initial offer is in your inbox, zip your lips about the salary range you’re targeting. Let them make the first move and negotiate later. You can, however, ask what their top and bottom earners make to get a ballpark idea of what number to expect.

10 Insurance Interview Questions

1. Why Do You Want to Work in Insurance?
2. What Qualities Help Someone Succeed in Insurance?
3. How Would You Handle a Difficult Customer Inquiry?
4. How Would You Help Clients Better Understand Their Policies?
5. How Would You Contact Potential Clients?
6. What Would You Do if a Policy Was Out of a Potential Client’s Price Range?
7. What Strategies Would You Use to Convince a Potential Client to Purchase a Policy?
8. What Are the Most Common Types of Life Insurance Policies?
9. What Is the Face Value of a Life Insurance Policy?
10. Explain the Difference Between an Irrevocable Beneficiary and Revocable Beneficiary.

Basic Insurance Interview Questions

Whatever type of insurance you work in, there are a few basic insurance interview questions you’ll need to answer about what motivates you to do a good job, what qualities you value, and whether your customer service and communication skills are up to snuff.

Question #1: Why Do You Want to Work in Insurance?

Hiring managers want to know what drew you to insurance. Your answer will speak to your interests, passions, and motivations. When creating your answer, focus on:

• How you became interested in insurance.
• How you see yourself contributing to the insurance industry.

How You Could Answer

“I never thought I would end up in insurance while growing up. But as I started thinking about my career, I realized that insurance was a great fit for me. I like being able to help people in a tangible way, by giving them support after a car accident or natural disaster.

Plus, I’m naturally a people person and love to work with others. I see myself contributing to the insurance industry because it’s easy for me to find out what makes people tick. I can then use that understanding to tailor clients’ insurance policies to their life circumstances and needs.”

Question #2: What Qualities Help Someone Succeed in Insurance?

Describe which of your personal qualities will help you grow the client base for your employer and succeed in your role.

For example, you could include these qualities in your answer:

• An understanding of the insurance industry.
• Communication and listening skills.
• Integrity and the ability to build trust with customers.

How You Could Answer

“While every insurance company’s needs are different, there are a few key qualities for insurance professionals to have. Insurance professionals should have an in-depth understanding of the insurance industry. They should know the ins and outs of policies, legalities, markets, and industry trends.

They should also be strong communicators and active listeners. This means being able to address customer concerns and explain complex information in layman’s terms.

Lastly, integrity and the ability to build trust with customers are important qualities for insurance professionals. Customers should be able to trust that an insurance professional genuinely wants to help them rather than simply make a sale.”

Question #3: How Would You Handle a Difficult Customer Inquiry?

When customers contact insurance companies, it’s very likely that they’re stressed or going through a difficult life event. Show employers how you would approach a difficult situation with a customer.

Here’s what to include in your answer:

• How you would approach a difficult customer inquiry.
• Solutions you would offer.
• An example of when you’ve helped solve a customer’s issue.

How You Could Answer

“While dealing with a difficult customer inquiry can be challenging, it’s always best to stay calm and composed when a customer is upset or frustrated. I actively listen to what a customer has to say and empathize with them to help them find the right solution.

For example, at my last insurance job, I received a complaint about a surcharge on a customer’s policy. The customer received a speeding citation a few months earlier and paid off the fee. I explained that the speeding citation was the reason for the surcharge and that it would stay on the policy for six years. I also mentioned that by maintaining a good driving record, the surcharge would be reduced after three years and eventually drop off the policy completely.

I also offered some tips on how to maintain a good driving record and take advantage of possible policy discounts in the future. The customer was happy with my response. As a result, I was able to retain that customer.”

Insurance Agent Interview Questions

When answering interview questions for insurance agents, focus on how you communicate with customers and potential customers to make sales and retain business.

Question #4: How Would You Help Clients Better Understand Their Policies?

Hiring managers are looking for insurance agents who can explain complicated policies to clients without scaring them away or leaving them more confused than ever.

In your answer, discuss:

• How you communicate policy details to clients.
• What you would do to clear up misunderstandings.
• An example of when you helped a client understand their policy.

How You Could Answer

“Insurance products are complex and changeable. To help clients understand their policies, I provide a clear explanation of the terms, coverage, and limits. I also answer any questions a client has to help clear up misunderstandings about their insurance policy.

Additionally, I like to provide examples of how a policy can help a client. For instance, I explain how it can help protect them against financial loss, meet legal requirements, and provide peace of mind when the unexpected occurs.

For example, I had one customer purchase a car insurance policy that only covered theft and damage from natural disasters, vandalism, and falling objects. However, it didn’t cover vehicle damage caused by car accidents. While comprehensive coverage was the cheapest option, I explained to the customer that they will need collision coverage in the event of a car accident.

I also suggested uninsured and underinsured motorist coverage in case they sustain an injury in a crash with an uninsured driver or in a hit-and-run. The customer agreed that both collision and uninsured driver coverage was necessary for optimal protection.”

Question #5: How Would You Contact Potential Clients?

Employers will expect you to gain new leads and generate new clientele. When asked how you would contact potential clients, your answer could include:

• Advertising and marketing strategies.
• Cold calling and direct mail.
• Contacting referrals and leads.

How You Could Answer

“The resources and strategies I use to reach out to potential clients include:

• Cold calling to introduce our services to potential customers.
• Referrals from existing clients.
• Email marketing campaigns.
• Promotional materials sent through direct mail.
• Social media advertising.
• Incoming leads who want to know more about our services.”

Insurance Sales Interview Questions

Next, you’ll learn how to answer insurance interview questions that gauge your ability to sell policies.

Question #6: What Would You Do if a Policy Was Out of a Potential Client’s Price Range?

These days, many insurance companies conduct behavioral interviews for insurance sales jobs and independent contractor agents. Behavioral interview questions gauge your ability to address problems on the job and come up with practical solutions.

Answer behavioral interview questions like this by using the STAR method and addressing the situation, task, action you took, and the result of your action.

For this specific question about selling a policy, think about:

• How you would help a potential client manage the cost of a policy.
• Other insurance policy options you would offer to better fit a potential client’s budget.
• Policy discounts you would discuss with a potential client.

How You Could Answer

“I would offer a monthly payment plan to make the premium of an insurance policy more manageable for a client. If a policy is still out of a client’s price range, I would discuss other policy options that may be better suited to their budget. I would also encourage them to shop around and compare different insurance policies.

If we have any discounts available, I will also bring those to a client. For example, the last insurance company I worked for offered discounts to clients with an excellent driving record or good credit.

In one case, a customer was interested in purchasing full car insurance coverage with compressive, collision, liability, personal injury protection, and uninsured motorist coverage. The customer couldn’t afford to pay for the policy lump sum and wanted to remove some of the coverage.

However, I offered a monthly payment plan that made the policy more affordable. The client also qualified for a 15% discount on the policy due to a perfect driving record. The client was happy with the monthly payment option and discount and opted to purchase the full coverage.”

Question #7: What Strategies Would You Use to Convince a Potential Client to Purchase a Policy?

Professionals coming from functional areas other than direct sales should talk about how they can excel at selling. Here’s what you should discuss in your answer:

• The importance of trust.
• Understanding clients’ concerns and needs.
• Finding the right policy for clients.

How You Could Answer

“It’s important to build trust with a potential client if you want them to purchase an insurance policy. I would never wheedle a customer into purchasing an insurance policy that they’re not happy with.

I listen to a potential client’s concerns and try to understand their needs. Once I’ve identified the policy that would work best for them, I would discuss what the policy offers, how it can benefit them, and how it can help them save money.”

Life Insurance Interview Questions

These life insurance interview questions will gauge your understanding of life insurance policies and the coverage and benefits they offer.

Question #8: What Are the Most Common Types of Life Insurance Policies?

Before you can sell life insurance policies, you should have in-depth knowledge of each type of policy. To demonstrate your understanding of the landscape to employers, include these details in your answer:

• The purpose of each life insurance policy.
• Who each policy is ideal for.

How You Could Answer

“There are several distinct types of life insurance policies. The most common ones include:

• Term life insurance that covers a policyholder for a specific period of time. This type of policy is ideal for people who need temporary financial protection in the event of an unexpected death.
• Whole life insurance that provides lifelong coverage and builds cash over time. This is best for people who want to provide financial security for their loved ones, cover final expenses, and leave a legacy.
• Universal life insurance, which is similar to whole life insurance, but offers more flexible premiums and death benefits. This policy benefits individuals who need life insurance coverage that can adapt to their changing circumstances.
• Variable life insurance that offers permanent coverage with flexible investment options. This policy is best for people who want life insurance coverage that invests their premiums on the market.
• Group life insurance, which is usually offered by employers and covers a group under one policy. This is best suited for employees who want to provide financial security for their loved ones in case an unexpected death occurs.”

Question #9: What Is the Face Value of a Life Insurance Policy?

To sell life insurance, you’ll need to demonstrate an understanding of policy face values. Be sure to include these details in your answer:

• A brief definition of a face value in life insurance.
• The key factors that determine a face value.

How You Could Answer

“The face value of a life insurance policy represents the total amount of coverage and death benefits that a policyholder’s beneficiaries will receive when the policyholder passes away. The face value is typically predetermined and stated in a policy. The determining factors usually include a policyholder’s:

• Age and health.
• Medical history.
• Number of dependents.
• Financial goals.”

Question #10: Explain the Difference Between an Irrevocable Beneficiary and Revocable Beneficiary.

When employers ask life insurance interview questions regarding irrevocable and revocable beneficiaries, here’s what to include in your answer:

• A comparison between irrevocable and revocable beneficiaries.
• The advantages and limitations of both.

How You Could Answer

“The main difference between an irrevocable and revocable beneficiary is the ability to change or revoke their status as recipients. An irrevocable beneficiary can’t be changed or removed from receiving benefits without their consent.

A revocable beneficiary, on the other hand, can be changed or removed at any time by a policyholder. Additionally, the policyholder can choose a new beneficiary or not have one at all. “

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