How to Prospect for Life Insurance Clients

Nicholas Ayers

Nicholas Ayers

Better Agency Co-founder

As a life insurance agent, you understand the security of a life insurance policy to your customers and their loved ones. While most people understand its importance for financial security, data shows that only 52% of Americans have life insurance policies. Unfortunately, in many of those cases, their policy is only the bare minimum and doesn’t offer the security they think it does. As a life insurance agent, your goal is to acquire life insurance leads and then help these potential clients see the importance of life insurance and see past the common myths and misconceptions often associated with these.

Reasons why people are not buying insurance

In general, most Americans understand the importance of life insurance. So why are there still so many without adequate policies? According to LIMRA’s 2021 Life Insurance Barometer Study, there are four widely held misconceptions that seem to be a barrier when it comes to Americans and life insurance. These misconceptions include:

  • Cost – Most Americans overestimate the cost of life insurance by as much as six times higher. This is especially true of Millennials. This cost misconception is what keeps many from acquiring the policies they should have in place.
  • Employer-provided insurance is sufficient – 29% of families believe that the life insurance offered through their employer is enough. Unfortunately, these policies often only cover the maximum of one year’s salary, which, in most cases, is not enough to provide families with the financial security they need.
  • Difficult to purchase – Nearly half of all Americans report that they put off purchasing life insurance policies that they know they need, and many believe this may be because they feel intimidated by the purchasing process.
  • Not needed until you are older – Unfortunately, younger people do not believe life insurance is something they need until they are older, often not until retirement age. The truth is that life insurance is less expensive for the young and healthy.

Tips for finding life insurance leads

If you are frustrated with the amount of life insurance lead generation you are currently achieving each month, it may be time to reevaluate how you are currently working to attract those leads. Here we offer some tips to help you focus on targeting the right prospects and giving you the best chance of closing on a policy.

Decide on a niche

Many life insurance agents believe that the more products they offer, the more clients they can attract. Unfortunately, in most cases, this is far from the truth. Take a closer look at the customers that you close with most often. What are their needs, and what are the policies they are purchasing? This is likely your target market! Focus on that market with the products they are looking for, and you are likely to see an increase in new leads.

Seek referrals

Turn to your friends, family, and satisfied customers and ask for referrals. They know what you do and the quality services you provide, so what better way than to ask for their help in sending people your way?

Purchase leads

Many agents turn to third-party companies that exist to provide you with high-quality life insurance leads based on zip codes, age, income, and desired benefit amount. This allows you to find leads based on your target demographic. You pay a specific up-front amount for these leads and receive your requested number of leads within your parameters.

Utilize social media

Nearly everyone is on social media these days, and you can take advantage of that. Take the time to build up your social media profiles on sites like Facebook and LinkedIn. Be sure to include a summary filled with details about the services and policies your offer. Make regular, beneficial posts on your social media accounts, including tips, blog posts, and industry news. But don’t just post! Spend time engaging with your followers, joining groups, and networking with others to achieve the most engagement and begin developing key relationships.

Join professional groups

Networking with other professionals in different industries is a great way to generate life insurance leads. Many of these networking groups meet on a weekly or monthly basis and offer professionals a way to socialize, share marketing tips and strategies, as well as refer businesses to each other.

Share your knowledge

With nearly half of the American population feeling confused or intimidated by the life insurance purchasing process, helping people better understand the process is a great way to help with lead generation. Maintaining a regular blog with informative information is a great place to start. Sharing these blog posts on social media allows you to reach a potential audience and establish yourself as an authority in life insurance. Other educational options include offering regular life insurance classes or seminars at networking groups, senior centers, colleges, and more.

Man thinking about getting life insurance policy

Overcoming common roadblocks

Now that you understand a few of the common roadblocks when it comes to purchasing life insurance, how do you, as an agent, help overcome them? Here we look at these common roadblocks and offer helpful solutions.

Policies cost too much

With so many Americans believing that life insurance costs as much as six times more than its actual cost, life insurance agents have a large barrier to overcome. In this case, this misconception can work to your advantage. Comparison tools can show prospects the actual costs of policies compared to what they expected, often leaving them pleasantly surprised and ready to purchase a policy that provides the security they need.

Not enough in the budget

Unfortunately, with many people living paycheck to paycheck, life insurance isn’t always on the budget. The best way to overcome this roadblock is to promote the value of life insurance and the security it provides and let them see that a life insurance policy is not an expense but more of an investment in their family. In addition, show them how purchasing a policy now will be cheaper than purchasing a policy down the road when they are older, have health issues, or have other substantial life changes.

Confusion as to which policies or coverage they need

With so many life insurance policies available, many people are unsure what their best policy options are and what coverage they need. One way to overcome this is to offer an evaluation session that goes over their income, expenses and debts, and family needs. Provide them with information on the expenses that life insurance can cover, such as funeral expenses, debt, mortgages, and more. Explain that a good guideline for coverage is 7-10 times their annual salary. Offer then an overview of the policies you recommend and help them better understand what each one means for them and their loved ones.

Discomfort when talking about death

Many people do everything they can to avoid talking about death, and this includes life insurance. For these clients, it is best to focus the conversation, not on death, but more on the legacy they would like to leave behind and how a life insurance policy will help offer them peace of mind when it comes to protecting their family.

Employer-provided coverage is enough

Many consumers have a life insurance policy through their employer. Unfortunately, while many feel this is enough coverage, the truth is most policies cap out at a person’s annual income, which is far below the recommended 7-10 times annual income. Share with them the statistics on funeral costs, average debts, and more to show them that additional coverage is often necessary.

CRM to boost life insurance business

Another great way to help boost your life insurance sales is by utilizing a CRM software to help you track and analyze data, understand your target audience, and provide personalized services and solutions more efficiently.

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