Since many people believe they don’t need life insurance, how do life insurance agents market wisely?
Prudential Insurance recently conducted an extensive set of consumer research that highlighted key reasons why consumers place a low priority on purchasing life insurance.
- Consumers believe that life insurance has a limited role. Many consumers view the role of life insurance as a resource to support their family in the immediate aftermath of a death. They don’t view it as a means to permanently replace lost income.
- Consumers perceive high face amounts of coverage as excessive. Prudential found that most consumers believe that “adequate” individual life insurance coverage is two to three times their incomes. This is well below the industry-recommended eight to ten times ratio.
- Consumers believe that they don’t need to. Some consumers choose not to purchase individual life insurance because they participate in a group life insurance program. Consumers may also believe that their families are self-insured in the event they died. Many dual income families believe that if one wage earner dies the second wage earner will be able to support the family.
It’s important to understand why people don’t think they need life insurance. This way your marketing can overcome objections.
Reaching the Best Life Insurance Customers
A life insurance agent needs to market to the best life insurance prospects they can get. There are great mailing lists available for the different cohorts that typically buy life insurance. These are:
- New Homeowners
- Parents of New Babies
- Parents of Children
- Turning 40
- New Mortgage Holders
- Small business owners
- Single parents
When it comes to insurance and financial advice, direct mail is the most trusted marketing medium. For example, millennials are the single largest buyers of life insurance.
Studies continue to show that Millennials trust direct mail. Research shows that 90% of Millennials think direct mail advertising is reliable. Plus, Millennials are 24% more likely to show mail to others, compared to 19% of non-Millennials. This means if they read something they like in the mail, they’re probably going to spread the word.
One more important tidbit – 72% of Millennial parents say print encourage them to go online and make a purchase. That means that your goal is to use your direct mail to drive your prospects to your website to look for more information.