How Insurance Agents Can Generate Family Life Insurance Leads

Life insurance agents face a highly saturated market with intense competition for leads. Lead generation is one of the most challenging parts of the job. Agents who embark on selling life insurance need to be armed with the right tools and processes to succeed and make it a lucrative insurance avenue. One of the keys to success is knowing where to find the people who are buying it. There are two main ways to access life insurance leads: company-provided leads and third-party leads. Company-provided leads are often the fastest and simplest way to get a steady lead flow, while third-party leads offer more control but come at a cost. LinkedIn is a valuable resource for connecting with potential leads and establishing authority in the industry. Additionally, agents can offer free consultations, run Facebook Lead Ads, and build a content marketing campaign to attract inbound leads.

Company-provided life insurance leads

The biggest benefit of using company leads is that they are essentially free. You don't have to spend money to access them, and you save time that you would have otherwise spent searching for leads. This allows you to focus on contacting prospective clients and making sales.

However, it's important to remember that these leads are not entirely free. While you are not charged an upfront fee, you pay for them in the form of lower commissions. Additionally, these leads are not exclusive. Your colleagues or former agents of your company may have already contacted these prospects.

Company-provided leads are a good option if you are new to the industry and want to gain experience without risking your own money on leads that may not convert. For experienced salespeople, however, company leads may cost more in forfeited commissions than what they would pay upfront for third-party leads.

Another thing to keep in mind is that company leads tend to be old and overused. Due to the high turnover rate in the life insurance industry, companies often redistribute leads from former agents to new ones. This means that by the time you receive a lead, several other agents may have already contacted that prospect.

Overall, while company-provided life insurance leads have their pros and cons, they can be a valuable resource for new agents looking to establish themselves in the industry without incurring high costs for leads.

Third-party life insurance leads

There are two types of third-party life insurance leads: shared and exclusive. Shared leads are sold to multiple insurance agents, resulting in more competition but at a lower cost. Exclusive leads, on the other hand, are curated specifically for a single agent, leading to less competition but at a higher price.

When buying third-party leads, it's important to be cautious as there is a level of risk involved. Since payment is made upfront, failing to close sales may result in negative earnings. To mitigate this risk, some lead generation companies offer a return policy that provides refunds if the leads contain inaccurate information or cannot be contacted.

The quality of third-party leads is crucial. Some providers may offer outdated or false contact details, so thorough vetting is necessary before making a purchase decision.

Compared to company-provided leads, third-party leads offer the advantage of not being deducted from commission rates. Additionally, they provide access to a wider pool of potential clients beyond one's immediate network.

In conclusion, third-party life insurance leads can be a valuable tool for life insurance agents, but it's important to consider the pros and cons, assess the quality of the leads, and manage the associated risks effectively.

Social media and professional networking

Social Media Platforms:

• Facebook: With its vast and diverse audience, Facebook is an effective platform for insurance agents to reach potential clients, run targeted ad campaigns, and build a community. Regularly posting informative content, client testimonials, and industry updates helps establish credibility and trust. Facebook's paid advertising feature allows agents to reach specific audiences based on interests and behaviors.
• LinkedIn: As a professional networking site, LinkedIn is ideal for showcasing expertise, sharing industry knowledge, and connecting with other professionals. It helps build credibility and establish a professional brand.
• Twitter: Twitter's concise format enables effective engagement with followers. It's great for sharing industry news, updates, and answering customer queries. Twitter is also useful for social listening and understanding your audience.
• YouTube: Insurance agents can utilize YouTube to share engaging video content, such as simplifying policies or providing tips for choosing the right coverage. This helps them position themselves as trusted advisors and attract potential clients seeking insurance information.
• Instagram: Instagram is highly visual, allowing agents to showcase their company culture, community involvement, and client success stories. It's also excellent for influencer collaborations and utilizing hashtags to expand reach.
• TikTok: With its massive user base, TikTok is ideal for educating and engaging a younger demographic. Short and entertaining videos can simplify insurance concepts and offer money-saving tips.
• Alignable: This platform connects local businesses and professionals. Insurance agents can showcase their expertise, participate in community discussions, and gain visibility within their target market.

Strategies for Social Media and Professional Networking:

• Content Creation: Create valuable content that showcases your expertise and addresses the pain points of your target audience. This can include video content, infographics, customer testimonials, office updates, and personal content.
• Building Trust and Credibility: Regularly sharing informative and helpful content establishes insurance agents as authoritative and trusted voices in the industry.
• Enhancing Customer Experience: Social media provides a channel for prompt and personalized customer support. Agents can answer inquiries, address policy questions, and resolve complaints, improving the overall customer experience.
• Harnessing Customer Insights: Active interaction with your audience through social media provides valuable insights into their preferences and expectations. This enables you to tailor your offerings and devise better marketing strategies.
• Monitoring Competitors: Social media allows you to track competitors' activities, content, and engagement techniques. This can inspire new ideas and help identify market gaps.
• Cost-Effective Advertising: Platforms like Facebook, Instagram, and LinkedIn offer precise targeting options, allowing agents to reach specific demographics, interests, and locations at a lower cost compared to traditional advertising methods.
• Professional Networking: Platforms like LinkedIn facilitate connections with industry professionals, including potential lead-sharing collaborations with financial planners, mortgage brokers, and real estate agents.
• Community Involvement: Staying active in your community through volunteering, for example, allows you to meet new people, demonstrate your expertise, and showcase your human side. This can lead to natural insurance networking conversations.

Referrals and cross-selling

Cross-Selling Strategies:

• Timing is key: There are four main opportune moments to attempt cross-selling: during initial contact, after selling but before delivering the policy, after delivering the policy, and throughout the year. For example, after selling a life insurance policy, an agent might ask about the customer's Medicare coverage and offer to review it during the Annual Enrollment Period.
• Utilize different communication channels: Agents can use drip marketing to periodically call, text, email, send letters, or mail postcards to insurance customers, reminding them about the other types of insurance offered. This consistent and varied communication helps build relationships and increase the chances of making a sale.
• Leverage staff: Agents can delegate tasks to their staff or assistants to conduct 'touch campaigns', which involve contacting clients after a policy has been issued to ask for referrals or additional sales opportunities.
• Offer bundled policies: Agents can suggest bundling different types of policies together, such as auto and life insurance, as this can be more appealing and convenient for customers.
• Build trust: By offering valuable advice and demonstrating expertise, agents can build trust with their clients. This makes customers more likely to consider additional policies and view the agent as a trusted advisor rather than just a salesperson.

Referral Strategies:

• Provide excellent customer service: Going above and beyond to provide exceptional customer service is key to obtaining referrals. This includes being responsive, attentive to clients' needs, and proactive in solving their problems.
• Ask for referrals: Agents can directly ask satisfied customers for referrals, especially if they have built a strong relationship. This can be done subtly by providing business cards or subtly suggesting that the customer shares their positive experience with others.
• Utilize social media: Social media platforms like LinkedIn provide opportunities to connect with professionals and potential customers. A robust and engaging online presence can help establish an agent's expertise and credibility, making it more likely for people to refer them to others.
• Network with other professionals: Building relationships with professionals in diverse industries, such as personal injury lawyers, tax accountants, or chiropractors, can lead to referrals. For example, if a client mentions their financial concerns to their accountant, the accountant may recommend the services of a trusted insurance agent.
• Maintain relationships: Stay in touch with existing clients and contacts, even when not specifically asking for referrals. Congratulate them on achievements, wish them a happy birthday, or simply check in from time to time. This helps strengthen the relationship and increases the likelihood of referrals.

By combining effective cross-selling and referral strategies, insurance agents can maximize their lead generation and build a successful and sustainable business.

Lead aggregators

Leads from aggregators may have already signed up with another agent, or decided not to change their insurance products, which means you could waste time and money. This is why lead aggregators are not recommended for those looking to buy life insurance leads.

• Hometown Quotes
• ZipQuote
• EverQuote

Frequently asked questions