Boost Life Insurance Sales with these 3 Marketing Strategies

Life insurance

September was Life Insurance Awareness Month.  The  (LIMRA) put out their Facts About Life 2016 detailing findings from several of their life insurance consumer studies. While more people own life insurance now versus 2010, there are still 37.5 million U.S. households (30%) that do not own life insurance.  

And of those who do own life insurance, 50 million households recognize they do not own enough coverage.  If the primary wage earner died, LIMRA found that:

  • 4 in 10 households with children under 18, say they would be in immediate financial trouble.
  • Another 3 in 10 households would have trouble keeping up with basic living expenses after several months.
  • Overall, 7 in 10 said they would have trouble covering everyday living expenses after several months.

So what is keeping these consumers from purchasing enough coverage (or any coverage) to protect their families?  How do insurance marketers and agents reach these families?

1. Education: Focus on educating consumers about their life insurance needs and the importance of owning coverage. Even for families who already own life insurance, it may have been years since they’ve examined their current plan.

There’s lots of varied information about the right amount of life insurance to own and which type of life insurance plan. Make sure to be a digital resource with detailed and clear information about different life insurance plans and how to calculate the amount of life insurance needed. If a consumer finds your site to be helpful, they’ll be more apt to contact you for more details about purchasing a plan that’s right for them.

2. Premium Rates: LIMRA’s research shows that, on average, people estimate life insurance to cost three times what it actually does. On all marketing materials detail rates…yes, rates can be complicated, but try to break it down so it makes sense for the consumer such as, “$250,000 of life insurance costs as much as one latte/movie ticket.”  Give them real examples of the cost of the plan, so they can make an informed decision.

3. Financial Advisor: It seems like all purchases are moving towards digital or mobile channels, but when it comes to life insurance purchases, good, old-fashioned face-to-face works best.  According to LIMRA, the majority of households said they were more likely to buy when advised by trusted financial professional (56%).  Make sure your marketing has options to reach an agent or financial advisor online or by phone to close the sale.  When it comes to a consumer’s financial future, they are still looking for professionals to help guide them make the right purchase.

Contact me, jschenher@twochicago.com, about integrating these strategies in your current marketing efforts.

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