IPB 103: Why Does the Life Insurance Industry Suck at Marketing?

Why don't life insurance companies do a better job of marketing the many benefits of using their cash value life insurance policies?  They talk a lot about death benefit, not so much about anything else.

Example of the industry frames one of the “benefits”:

What the industry says, “You can leave the legacy of a sizeable estate to your heirs”

What your clients hear, “I can spend a bunch of money to leave my kids rich when I'm gone

Hmmm…let me think about that one…NO.  Everybody can think of a couple of teenagers or early 20-somethings who inherited a bunch of cash from grandma or their great uncle Bill.

How many of those stories have a happy ending?

The truth is that most advertising and/or marketing that's done by large life insurers is more focused on brand recognition than anything else. Running ads during the Superbowl with calving whales and people sailing on their yachts is about as obscure as it gets.

But it makes someone in the marketing department look good to all the C-level people who happen to be watching the big game.  None of it does anything to actually convince a consumer to buy a product from the company in question.

And why, why, why…

Is the life insurance industry so willing to concede victory to the investment industry? Yes, we know the argument is that “we're not competing with the investment industry.”

Actually, I agree with that…technically speaking.

But evidently, the investment industry missed the memo. It's time to get in the game folks!

About the Author Brantley Whitley

Brantley is a practicing life insurance agent and has been for nearly 18 years. After years of trying to sell like his sales managers wanted him to, he discovered that people want to buy life insurance if you actually explain the benefits.

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