A Niche Market That Can Fuel Your Life Insurance Business – InsuranceNewsNet

One question I hear all the time is about leads. Qualified leads. Good leading companies. Lead this work.

Wow! It’s exhausting!

And my usual response is, “Maybe you need more ‘qualified’ leads, or maybe what you need is more leads to rank.”

It’s about your marketing plan and your business plan – these are the things that will drive your business.

LIMRA recently published a report on what fuels the purchase of niche life insurance. Here, right inside this insightful report we see an outline of a marketing plan.

Let me show you how I find a marketing plan in this report.

The report informs us that this niche market has a higher level of financial concern than the general population, and that financial concern has been exacerbated by COVID-19. Does this mean that a marketing message that addresses how this financial concern can be solved would resonate with this niche market?

What if our marketing message told a story about how consumers in this niche market can ensure that their family can pay their monthly bills or mortgage while keeping their loved ones from facing a difficult situation due to premature death?

I know well. Yes…that’s what life insurance does.

But it’s a major concern for 44 percent of this niche market, the report said.

Here’s the thing – my report says that this niche market is more likely than the general population to own individual life insurance. Will the right message targeting this niche market with a strong call to action generate activity? And didn’t we mention we need activity?

Almost six in 10 members of this niche market (58%) have individual coverage. Compare that percentage to the 52% of the general population that owns individual life insurance, and it looks like a big market.

Another insight I found in this report is that 25% of this market segment owns group life insurance, which is a 5% increase from 2020. We all know what happens to group life insurance when you leave your job or retire. you retire. So there is a marketing message that can be targeted to this specific niche – what do you think?

Why do they buy?

People buy on emotion and are moved to action by logic, even people who say they buy logically buy that way because it makes them feel.

So why do members of this niche market buy life insurance?

An interesting insight I found from this report is that this niche market has the perception that life insurance is only for final expenses, a perception that the report points out can result in their family not having enough income replacement coverage. This perception may also cause them to lose the ability to use life insurance to pass wealth on to their loved ones. Do you see a powerful call to action with this insight?

You have an opportunity to help dispel that perception and protect their families.

I can see the marketing plan is starting to come together – how about you?

When I started collecting my messages, I found in this report that members of this niche market also see life insurance as a solution for things like:

  • Supplementing their income after retirement.
  • Paying off their mortgage.
  • Replacement of lost income.

Now, for me, I see three different marketing messages that I can use in three different marketing emails, three different Facebook ads, or three different talking points to start a conversation.

Here’s what I advise agents and advisors who ask me about potential clients.

Decide what problem you’re solving, who has that problem, where they congregate, where they get their information, and then craft your marketing message.

Then look for a growing market whose members realize they have a problem, are willing to spend the money to solve that problem, and see you as someone who can help them solve those problems.

A growing market

Now, when I look at this report, I find some of these elements: This niche market is 44 million, 13% of the population. And they have grown by more than 20% in the last 20 years. Hey!

Their average age is 38, with 30% of them under 20. That to me shows a growing market. Their median annual income is $45,870, with nearly one in five earning $100,000 or more a year. Maybe they can afford your solutions?

Finally, 43% of those in this niche market say they have used a professional financial advisor, with 30% telling you they are currently seeking a financial advisor, according to the report. This is six percentage points more than the general population. There is a lesson in this data for you!

So what is the marketing message you should start with to reach this niche market?

According to this report, of the 44% of black Americans who are uninsured, one-third believe they need life insurance.

That’s right, that niche market is the Black American market.

And this report tells us that uninsured or underinsured, one in four black Americans — that’s 10 million people — self-identify as a market that says they need life insurance.

Yes, they overestimate the cost of life insurance, thinking it is too expensive. This confirms exactly why you need a continuous, engaging marketing message that starts with curiosity, a powerful call to action, and an easy way to do business with you.

The most important message I took away from this report is that 55% of black Americans will experience financial hardship within six months of the death of a major employee.

That’s why they need you.

Lloyd Lofton is the founder of Power Behind sales. He is the author of Saleshero’s Guide to Handling Objections, selected as 1 of the 11 Best New Presentation Books to Read in 2020 by BookAuthority. Lloyd can be contacted at [email¬†protected].

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