Do I Even Need Life Insurance? 5 Effective Ways to Market to Your Consumers

 Do I Even Need Life Insurance? 5 Effective Ways to Market to Your Consumers

February 12, 2020 | Produced by Ryan Frantzen, Vice President of Sales 

You have probably heard these questions before: 

‘Why do I need life insurance?’ 
‘How much is this going to cost?’ 
‘What is the difference anyway?’
‘That will probably never happen to me.’ 

According to a 2018 report from the Life Insurance Marketing and Research Association (LIMRA), 35% of households would struggle financially within one month if their primary wage earner died. Yet finance companies still struggle with developing a marketing strategy that convinces consumers how they could benefit from protections addressing these financial risks. 

According to the American Council of Life Insurers, life insurance is a $12 trillion industry. In 2018, 10 million new policies were purchased, the average individual was insured for $168,000, and 40% of policies were written as term life coverage. As providers, we understand these products can be essential for consumers,  assisting with burial and final expenses, providing income support, and transferring wealth to family left behind. 

But despite your best efforts, consumers are not responding to your marketing tactics. This blog covers 5 ways to adjust your marketing approach with effective, strategic ideas to reach your consumers. 

Sign-Up to Join our E-Newsletters: Stay informed on industry trends, product news, new available resources, and recent news. 

1. Adapt to Changing Consumer Needs 

Securian Financial estimates over 50% of the current economic customer base will be under the age of 45 in the next ten years. To meet changing consumer needs, lenders need to be able to answer the question: “How does this product help me, the consumer?” Lenders need to be adaptable, looking across all demographics to consider potential ways their products can provide solutions to a wide variety of consumers.

Buying trends, new technologies, generational needs, and shifting business practices influence consumer needs and buying behavior. Lenders must be flexible in order to meet younger and older generational financial pain points simultaneously.

2. Identify Influential Environmental Factors 

Health expenses are often listed as a financial concern for families, and with that concern comes a strong desire to have safety nets in place to prevent unmanageable financial burden. With a suite of life insurance, involuntary unemployment or hospital/accident protections, lenders have the opportunity to provide solutions that directly address those familial concerns. 

According to a Securian Financial study, consumers’ most common financial concerns are supporting one’s family, affording health care, and leaving enough money for one’s family in the event of death. Additionally, consumers communicated having more of an interest in health- and death-related products than in work- and property-related products.  By identifying influential factors, lenders can more strategically leverage products to fit a specific consumer need.

3. Explain and Educate 

For many consumers, life insurance and other non-essential coverages only become top of mind once they are needed. This typically means some kind of triggering event has happened (e.g., accident, illness, marriage, childbirth, etc.). Being a voice that brings proactive awareness to consumers can help establish your industry expertise, build brand loyalty, and inspire consumer decision-making. 

Terminology surrounding insurance products like “whole life” and “term life,” or “critical illness” vs. “hospitalization” vs. “accidental” can be confusing and unfamiliar to consumers. Utilize your digital presence to share information that explains and educates. Make sure your staff is also educated on your wide variety of product options and is given training resources to empower them to communicate effectively. 

Learn More: Today’s consumer lending market is complex and we understand the balance of traditional business with emerging trends and solutions.

4. Tell a Story 

Life events motivate consumers and offer opportunities for lenders to communicate through stories. Consumers want to understand and feel like they are making the ‘right’ purchase that’s also affordable and convenient. Make sure it is your products that they turn to. 

Consider the power a story can tell. Storytelling as a marketing tool can demonstrate what different products can do. This approach addresses customers’ needs and demands in a way that is relevant and empathetic. Lenders can speak directly to business owners and  households by presenting real-life scenarios specifically related to their needs, while speaking to them on an emotional level.  

5. Differentiate Your Product and Services 

In short, consumers are looking for a good selection of product options at a reasonable price. To be competitive, you have to stand out. To stand out, your messaging has to resonate with your consumers. Consider making changes that differentiate your products and services. Is your current messaging about the product or the consumer? Ideally, it’s a mix of both. By focusing on the consumer need and product functionality, lenders can give consumers confidence in what they are purchasing. Take the opportunity to create more targeted messaging that considers generational trends, environmental factors, and tells a clear, relatable story.

By effectively marketing to your consumers with an evolving strategy, lenders can be ready with an answer to the ‘why do I need this?’ question, and more effectively convert their products into necessary solutions. 

Read More on Allied Insights: A Financial Wellness Check-Up 

About Allied Solutions

Allied Solutions, LLC is one of the largest providers of insurance, lending, and marketing products to financial institutions in the US. Allied Solutions uses technology-based products and services customized to meet the needs of 4,000 clients, along with a portfolio of innovative products and services from a wide variety of providers. Allied Solutions maintains over 16 regional offices and service centers around the country and is a subsidiary of Securian Financial Group, Inc.


Content in the blog posts are the opinion and views of the writer, and don't necessarily reflect the opinions or views of Allied Solutions.

Most Recent