Life insurance is one of the most challenging lines to sell.
These days, with lower average incomes, most people are looking to save money wherever they can. So, purchasing insurance that they aren’t legally required to buy isn’t exactly at the top of their list.
However, certain prospects inherently understand the value of life insurance and are much more likely to purchase it—hopefully from you.
With that in mind, here is a list of the top eight types of life insurance prospects you should market to.
1. Growing families
Couples who have just married or are having kids are likely to purchase life insurance. They want to protect the family they have just created and understand that life insurance will do just that.
How to find them: Look in your local newspaper for birth and wedding announcements. Reach out and congratulate any newlyweds or new parents in your town. Send them a card and then make a follow-up call or visit.
2. Existing property and casualty customers
If you’re a full-line agency, don’t underestimate the power of marketing life insurance to your current property and casualty customers. You’ve already gained the trust of these customers, so they’ll be more open to cross-selling.
How to find them: Review your current customers’ files. Existing customers with high liability limits or umbrella policies are excellent life insurance candidates. Send out letters letting your customers know that you offer life insurance and then follow up a week later with a phone call.
3. New business owners
New business owners are prime candidates for life insurance. Most new businesses have buy-sell agreements that require the owners to carry life insurance. Businesses may also want to purchase insurance for their key employees.
How to find them: Check local online news sites, newspapers, and materials from chambers of commerce. If you hear of a new business opening near you, stop by and show some interest.
Set out to make a meaningful relationship with the new owners. You could also consider sending a card or a small gift, such as flowers, congratulating them on their new venture.
4. New homeowners
New homeowners, especially first-time home buyers, are excited about their purchase and want to ensure that their new asset—the one that cost them all that time, money, and effort—is protected for the long haul.
Some will have bypassed (or are considering) mortgage insurance—and a solid life insurance policy can make that purchase unnecessary. Explain how you’re saving them money.
How to find them: If someone calls your office to get a homeowner’s insurance quote, talk to them about life insurance. Keep your conversation friendly and casual—no hard selling. If you have the right price, you’ll be in a good position to close the deal.
5. People with health issues
A lot of people don’t understand the importance of life insurance until they are diagnosed with a serious health issue.
This is unfortunate for the customer who will have to pay very high premiums or face the risk of being turned down. These prospects definitely understand the value of life insurance and are willing to pay the premiums to protect their families.
How to find them: In these cases, it’s best to go with referrals from friends, family, or existing customers. If you can help customers with moderate health issues secure life insurance, you’ll receive enough referrals to keep you busy for a while.
6. Young professionals
When a person first enters the job market, they realize that they have more disposable income than ever before. While life insurance may not be high on their buying list, there are more than enough people in this group who understand its importance.
How to find them: The best way to find young professionals is by using an age filter when purchasing leads online. Most consumers in this category are in the 18 to 25-year-old range.
7. People who’ve recently lost a loved one
As morbid as it sounds, when somebody loses a loved one such as a parent, child, or spouse, they come to realize that they could be next.
They also come to realize the importance of protecting their family after their passing. And life insurance is one of the best ways to do so.
The biggest challenge is showing your compassion while still attempting to inform the consumer and eventually make a sale. Remember, you’re selling to a human, so treat them with the same respect you would want during a difficult time.
How to find them: Referrals from friends, family, and existing customers are a good place to start. For instance, if an existing customer knows someone who recently lost a loved one, they may mention your name to the person who’s seeking life insurance coverage.
8. People that need more coverage
Just because someone has a life insurance policy doesn’t mean they’re all set. Maybe they need to add more coverage. Maybe they want to consider a different type of policy, such as a whole instead of a term or universal.
The nice thing about this group is that they already have life insurance. This means they already understand the importance of coverage. This makes it easier to help them upgrade.
How to find them: Contact your existing customers to discuss their current coverage and additional needs. You may find that these are some of the easiest sales you ever make.
Get aged life insurance leads
By marketing life insurance to these eight types of prospects, you’re much more likely to convert leads into sales. These prospects understand the value of life insurance and are ready to buy.
It’s time for you to close more leads!
Keep your eyes and ears open for referrals from family, friends, and existing customers.
Photo by Mikhail Nilov