Open Mobile Menu Close Mobile Menu

Sales of Life Insurance Policies Are Down 45%, Are You Buying Leads Yet?

By Troy Wilson
5 minute read

aged life insurance leadsLife insurance sales aren’t what they used to be. If you haven’t been in this business for decades, you might be surprised to know just how many more life insurance leads agents used to be able to close in a given year. Economics, tech, and automation have all played a role. The obvious question is: How is your insurance sales business going to come out on top in this market?

Term Life Sales Are Down

The bad news? Individual term life policy sales have been in decline for 30 years. Just how far have they fallen? Forty-five percent since 1985! The market has gone from selling over 17 million policies per year in 1985, to selling 9.4 million in 2014. The percentage of Americans who own policies has fallen to 57%, down from around 70% forty years ago. Corporate profits from premiums have also fallen.

Insurers Cut Out the Middleman

This has made for a lot of changes for the business of insurance, notably there are a lot fewer agents than there used to be and their role in the industry is much different. Last year, a Wall Street Journal article noted there used to be an “army of agents” selling policies door-to-door and having sales conversations with housewives over tea at the kitchen table.

It goes without saying those days are long gone. Today, one of an insurance agent’s biggest competitors isn’t another neighborhood agent. It’s automation from large insurers that are beginning to cut out the role of the agent with technological advancements.

Tech Is On the March

Large insurers are trying out a host of new technologies in an attempt to get new names into their books of business. Last year, MetLife tried out self-serve kiosks in WalMarts in suburban Atlanta. The bargain retailer’s shoppers could get a policy with a $50,000 death benefit for only $5 for the first month’s premium.

This year, Massachusetts Mutual Life Insurance Co. is rolling out a “pathbreaking” new online signup system. The insurer hopes its new Haven Life unit will be able to boost sales with a 20-minute application process. New term life policyholders still have to get a physical at their doctor’s within 90 days of signing up, but there won’t be extensive lab tests or records requests from a customer’s physician.

It’s a new way of doing things. One that doesn’t leave much room for independent brokerages. That’s why it’s all the more important to look to new ways to bring in life insurance leads.

It’s Time to Start Buying Leads

It’s undeniable. If your life insurance business is going to grow, you need a steady supply of leads to fill your sales funnel. If your prospects run too low, sales could suffer, and so could your business.

Fewer middle-class customers are seeking out life insurance on their own anymore and not as many will be easily sold on a term life policy. That’s why it’s more important than ever to talk to those prospects who do want a policy. The easiest way to do that is to start buying leads.

There are several different types of leads available for purchase online, from exclusive fresh leads, to shared fresh leads, to aged leads. For those agents and brokers needing to up their prospecting game today, aged leads offer one of the best ROIs in the business.

Working Aged Life Insurance Leads

Aged leads have become my favorite prospecting strategy and with the right setup, they just might become your go-to favorite as well.

For those that aren’t familiar, aged leads are are discounted leads that are 30, 60, or 90 days old. The idea behind these older leads is that the flood of attention created when a potential customer puts in a request for a quote can be grating.

Phones ringing off the hook in the first day or week after a request goes out is enough to turn off many prospects. For others, the agents they’ll talk to won’t have a product or level of customer service that fits their needs. In short, this is a customer who wants a term life policy, but doesn’t buy one.

Almost 95% of agents contact a lead during the first week. After that, competition drops off dramatically. That’s where you come in. When you work aged leads, you are working a sales lead in a lower-stress environment. There’s time to build a rapport, get a prospect talking, and address his sales objections.

Buying Leads With a Good ROI

Here’s the best part about aged leads. Price is a major factor that makes aged leads one of the best returns on investments you can make for your insurance business. While a single fresh lead may cost you anywhere from $7 to $35, aged leads can typically be had for less than a dollar a piece. Buying in bulk makes the cost even lower.

To get started with aged life insurance leads, you need three things:

  • An autodialer
  • A workable system
  • And a healthy supply of leads

Check out this post for more details on how to get started with aged leads.

Now, more than ever, it’s time to start buying term life insurance leads. If there is a bottom to the 30-year decline of policy sales we’re in now, we haven’t reached it. Automation shows no signs of slowing down, nor do tech advancements that are no friend to the independent agency. To keep your life insurance business healthy and flourishing, a steady source of leads is a must.

You can purchase a steady supply of high-quality life insurance leads right here from the Aged Lead Store today. With the right setup, aged leads can provide the ROI your business needs, not only to grow but to thrive.

About Troy Wilson

Troy is the CEO and founder of Aged Lead Store. He has been in the lead generation industry for over two decades. His blog posts focus on how to refine your sales process and get the most out of your insurance leads, mortgage leads, and solar leads.

Further Reading