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How to Find New Prospects for Life Insurance

Posted by Jon Anderson on Jun 27, 2016 11:30:00 AM

Selling life insurance can be tricky for some agents. After all, this type of insurance deals with one subject few people want to talk about - death. In fact, according to a recent study, about 1/3 of people who don't have life insurance or don't have enough don't want to buy it because they're afraid to talk about death.

Of course, when you think about it, this is an eventuality that everyone has to face, though the prospect of such a thing happening can be a grim subject. If you try and force people to talk about their demise, you might scare them off instead. So, how can you sell life insurance effectively, without making people run the opposite direction? 

Finding life insurance leads can be difficult, but not impossible. There are many ways you can approach the topic, without resorting to scare tactics. If you want to find new prospects for life insurance, then consider these ideas.

 

1) Pick a Niche Market

Niche refers to smaller subsets of any given market. When it comes to life insurance prospects, you can say "everyone" is your market (because after all, death is inevitable). However, if you think about the smaller groups within this market, it might help you focus your message and make it more effective.

To start, make a list of groups of people who could truly benefit from life insurance. For example, people who have risky lifestyles or jobs, or those who have people depending on them, like:

  • People into extreme sports (skydiving, rock climbing, surfing etc.)
  • Firefighters, law enforcement officers, national park rangers
  • Truck Drivers
  • Workers who travel a lot (sales reps, etc.)
  • Engineers
  • Taxi Drivers
  • Roofers
  • Electrical Powerline Installers
  • Construction Workers

Try to make your list as specific as possible. After you narrow down your possible lists, it's time to try and reach out to these people. There are many ways you can do that - for example, if they have local unions or groups, you might want to try and reach out to them. Ask if you can leave your business card or flyer in their offices or ask if you could distribute your information in their newsletters or other mailers. This way, you can reach out to your potential life insurance leads directly.

 

2) Ask for Specific Types of Referrals

When it comes to selling insurance, referrals are probably the best source for them. In fact, many people do good business with just referrals. But, some agents may shy away from doing this too many times, as they don't want to pester their clients. 

However, one way you can effectively find new prospects for life insurance through referrals  is to ask for more specific types of referrals. Often, if you ask someone directly, "Do you know anyone who wants life insurance?" they may pause and think, then say "No," or "Not right now." That's because what you're asking might be too broad. They have a hard time thinking of who exactly wants to buy insurance in their current circles of friends, family, and acquiantances.

Next time you're looking for a referral, be more specific. The goal is to  do most of the heavy lifting (or thinking) for your source. Instead of asking a generic "do you know anyone who wants life insurance?", you could ask a client "Do you know other dads/moms in your son's PTA group who might need insurance?" That will help them think more specifically and narrow down their choices. By asking more exact questions like this, you can help your source narrow down leads for you and help you in selling life insurance to potential clients.

 

 

3) Cross Sell

Cross selling is a great way to sell life insurance. For one thing, you already have the person in front of you.   If you've provided them great service, then it should be easy for you to cross sell them life insurance. 

You can try this technique with both new and current clients. You might want to give them your best "multi-line" value pricing plan if they consolidate all their insurance policies with you, or perhaps just ask them if you could give them information about life insurance. In fact, this is a great way to educate your customers. According to a recent study, 80% of  people actually overestimate the price of term life insurance. Also, many people don't get life insurance or don't buy enough because they don't know how much they should have. So, use this opportunity not just to sell your clients on life insurance, but actually tell them what it's about--educate them.

 

4) Seek Out Life Insurance Prospects Using the Internet or Newspapers

Few people seek out life insurance coverage,  because not many of us think about our demise all the time. It's not just fear, but it's usually because most people live in the moment. When you have to juggle work, family, social obligations, sometimes you just don't have time to think about what would happen to your loved ones when you're gone. That's probably why seeking out prospects for life insurance leads is still the most effective way to bring them in. One old-school way to find new prospects for life insurance, is to look at newspaper articles, but you can add a more modern (and personalized) element by using the Internet, particularly social media.

How can you do this? Well, it's all about reaching people during their most crucial life events. Look through your local paper or your social media feeds and see if people have had a major life change like:

  • Getting married
  • Having a child
  • Buying a house
  • Getting a new job or a promotion

These events usually help people pause and look at the bigger picture. When you see people going through these life changes, perhaps it's time to seek them out and ask if you can talk to them about life insurance.

Find New Prospects for Life Insurance

One controversial way some agents find prospects is by looking through the obituaries. Be very, very careful if you plan to go this route - you do not want to bother people in their time of grief. However, you may want to file away their information for much later, maybe waiting a few months to a year before approaching them. If you know them personally, of course do send your condolences, but avoid any talk of life insurance until they have had time to properly grieve.

 4 Ways To Dominate A 25-Mile Radius Using Social Media

Learning How To Sell Life Insurance Requires Time and Patience

Ask any seasoned life insurance agent - learning the right way to find new prospects for life insurance is not easy. You need patience, time, and sometimes, the right timing. You might even make mistakes along the way. However, that doesn't mean you should avoid it. Life insurance is important for many people, and by educating people and giving them the best possible options, you're offering a great service for people, their loved ones and your community. 

Want to learn more about how to use social media to get more life insurance prospects? Then check out our free ebook ""Build Your Insurance Book of Business: Facebook Marketing Guide”. It's a great guide for those just starting, but if you've been using Facebook for a while, you might pick up a few new things too! 

4 Ways To Dominate A 25-Mile Radius Using Social Media
 

 

 

Topics: insurance agency marketing, insurance clients, blog

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