Term insurance is one of the most powerful financial tools for protecting families — yet it’s often ignored by low-income households in India.
Because of cost fears, lack of awareness, and the belief that “insurance companies never pay.”
As an insurance agent in 2025, your role is to simplify, educate, and show value so that even budget-conscious families can protect their future.
This step-by-step guide will help you close more sales and build lasting trust with low-income clients.
1. Understand Their Concerns First
Before talking about premiums or benefits, listen to their worries.
Low-income families often say:
- Premiums are too high.
- If I don’t die, I won’t get anything back.
- Companies reject claims.
Agent Tip:
Instead of jumping into product details, ask questions like:
- What are your family’s biggest financial needs?
- How much can you comfortably save every month?
This helps you choose the right plan for their budget.
2. Offer Affordable Coverage Options
Many agents lose sales by suggesting big policies that clients can’t afford.
Instead, start small and affordable.
- Begin with ₹300–₹500/month premium.
- A ₹10–₹15 lakh term plan can cost less than ₹10/day for a healthy 30-year-old.
Explain in simple daily cost terms:
This plan costs less than one cup of tea per day — but it can protect your family for ₹15 lakh.
Tool Tip: Use PlanMatch to instantly find budget-friendly plans that match their income.
3. Focus on Emotional Value, Not Just Numbers
Numbers alone don’t convince low-income buyers — emotions do.
Instead of talking about sum assured or riders, focus on:
- Protecting children’s education
- Keeping the house safe from debt
- Making sure the family can buy food and pay bills if the breadwinner is gone
Example Story: Ramesh bhai, a bus driver, paid ₹400/month for term insurance. When he passed away in an accident, his wife received ₹15 lakh. She paid off their loan and continued their children’s schooling without financial stress.
4. Use Micro-Commitments
If clients hesitate, reduce the entry barrier:
- Start with ₹10 lakh coverage now
- Upgrade to ₹25 lakh when income increases
- Offer monthly premium payments instead of yearly
Why this works: It’s easier for them to say “yes” to a small start than commit to a big amount right away.
5. Overcome the “No Return” Objection
One of the biggest reasons low-income clients reject term insurance is:
“If I survive, I get nothing.”
How to explain: It’s like a helmet — you hope you never need it, but it’s there to protect your family in an emergency.
If budget allows, offer Return of Premium or Accident Riders to add value.
6. Sell Through Trust Networks
In low-income communities, trust sells more than advertising.
- Use respected local references — a teacher, shopkeeper, or panchayat leader
- Attend community gatherings, religious events, or health camps
- Ask existing clients for referrals
Pro Tip: When one trusted person in the community buys, others follow quickly.
7. Use Visuals and Local Language
Complicated brochures won’t work.
Use:
- WhatsApp Kit to send short Hindi explainer videos
- Charts comparing daily costs to benefits
- Real photos of families (no stock-looking images)
Quick Sales Script (Customizable)
Your family depends on your income. For just ₹9 a day, you can make sure they never have to struggle for food, education, or medical needs if something happens to you. Let me show you a plan that fits your budget.
Comparison Table: Sample Premiums for Low-Income Families
| Age | Coverage | Monthly Premium | Daily Cost |
|---|---|---|---|
| 25 | ₹10 lakh | ₹290 | ₹9.60 |
| 30 | ₹15 lakh | ₹430 | ₹14.30 |
| 35 | ₹20 lakh | ₹590 | ₹19.70 |
Want to sell more term plans to budget-conscious clients?
Apply Now to Join Our Agent Network — get PlanMatch, download the WhatsApp Kit, and use Sales Scripts to close deals faster.
