Life Products I'm Focusing On For Marketing

The speaker discusses the future of insurance agents and focuses on two types of insurance products: final expense and IULs (Indexed Universal Life). Final expense insurance is recession-proof and appeals to older individuals who are professional procrastinators. IULs are higher ticket products that require explanation and conversation with an agent. The speaker suggests using top-level marketing on platforms like Facebook, YouTube, and TikTok to attract customers. Higher-end products like IULs have higher margins and allow for a higher cost per acquisition. However, new agents should start with final expense insurance. Proper structuring of IUL policies is important to avoid conflicts of interest and potential chargebacks. The agency owner should review the work of hired agents to ensure proper practices. Insurance agent, welcome, happy Thursday, welcome to episode number two. Today what I want to talk about is the type of product I will be focusing on as far as my marketing and as far as my marketing goes on life insurance. And kind of want to talk about conversations I've had on my weekly team call this morning and a conversation I had with an agency owner who by the way has produced over a million dollars of life insurance in the past five years alone and over five million ever since he started in 2007. So he was giving me some insight as far as what the future holds like for life insurance sales. And I asked him a question, I asked him if he sees insurance agents disappearing in the future. Okay, and I was asking him, I was making a bold claim and I pushed him and asked if the reason why a lot of these insurance companies push the fact to have insurance agents to propagate the product within friends and family, okay, because they obviously pour a lot of budget into their own product and then asking as to why the insurance agents exist. And what he talked about is, and he did agree with me that for certain products, and this is what I'm going to talk about today, for certain products that you would see disappearing within the next five, 10 years, and what he told me, and which doesn't come to my surprise, is that products which are easy to diagnose, products like term insurance, okay, which are usually people from the age of 20 to 35, okay, that are usually higher or just have better tech, tech knowledge, okay, what they'll do is they'll go online and it's something as easy as answering a few questions, getting a quote, and checking out by themselves, okay, and so he said that within 10 years, products like specifically term insurance, as far as life insurance goes, he would see disappearing, but he told me two other products, and these are gonna be the two products that I'll be focusing on, at least for the near future, and those are final expense and IULs, and I just wanna talk about quickly about those two products. Now granted, I've been in the industry and I focus strictly on marketing a lot of the times. My time and energy is focused on marketing. I have a lot of sales people that I work with, okay, insurance, so they know the product better than I do, but for final expense, main two reasons, number one is that it's recession-proof, okay, so in a recession, in a downturn, usually people will tend to hold on to final expense or buy that product because it's something that they can hold on to, something that it will be guaranteed no matter what. We all know that insurance has been around, has been one of the only companies that were still around after 2008 despite banks and hundreds and hundreds of other Wall Street businesses falling, insurance companies were able to hold up, and so people have a lot of trust in insurance companies and will continue to supply money into that, certainly the old folks, and final expense, okay, so that's number one, and then also number two, something in this industry that we say here in final expense is that prospects are professional procrastinators, okay, this is a product that they need, it's a product that they know they should get, but they push away to the side, and so this is where insurance agents come in and fill in the gap, okay, so that's number one, it's also an easy product to start with for new agents, so we'll talk about final expense and it's why it's a great product, it's an easy product to sell, there's high commissions, or decently high commissions compared to other products, and so that's what he told me as far as final expense, and then also if we look at products like Universal Life, IU Wells, hire ticket product, why these products are good, there's a few reasons, so usually insurance companies won't promote them, and there's a few government regulations that prevent them from directly marketing it, so they leave it to the agent, and what he told me and I found very good is that there's a lot of legality that goes behind it, people make the wrong decision, they would rather have it done with the agent where there can actually be a conversation and an explanation so that if anything comes back around, it's not to the insurance company to deal with, it's with the agent, okay, so that's gonna be very important that if you do plan on selling ULs or IULs that you work with your IMO or your upline or whoever you work with to sell the policy correctly so that people are happy, and it doesn't come and bite you in the you know what a few years later down the line. Okay, so what I was getting to for IULs is that what I was trying to tell you is that agents will always be required to sell those high ticket products, okay, it needs explanation, it needs a phone call, this is not something that people will take 23 minutes out of their day to watch a video on themselves, usually they wanna have someone in a higher position to explain it to them despite that we're gonna talk about how videos are gonna be extremely important, I'm not neglating that, I'm just saying that it needs a conversation, needs a person of status and level that can help them through this process, okay, so not only are the insurance companies looking after the agents to push this product, it's also a product that is a little bit more complicated and needs a conversation, so this why, in the next couple years, unless things change, I will be focusing on those two products, okay, and the thing that we're gonna have to understand is that when marketing on platforms like Facebook, platforms like YouTube, platforms like TikTok, okay, which we're gonna talk about a lot more in future videos, what we're doing here is top of level marketing, okay, now we can get into Google SEO, trying to rank, the thing is, and I've been telling agents this for a while now, we could obviously do that, but this is a one year process to get your site to rank on the first page of Google, and not only is it a year, but you're gonna have to pour thousands and thousands of dollars, now I may be wrong, okay, maybe some SEO's gonna come at me and say, hey, we can do this a different way, but from my knowledge, it takes six to 12 months of time, of backlinks to work on, and you're also competing against the state farms, the mutual, Omaha's, the bigger companies that pour millions of dollars on Google and have really high-end marketers to put themselves in front there, okay, so at least for the beginners, all right, so people I'm talking to are the people that are selling three, four, five, six, 7,000 a month that wanna get to 15, 20, 25, we're gonna have to go through the routes of top level marketing, which includes, again, the platforms like Facebook, YouTube, and TikTok, where we're interrupting people, okay, and the reason I say top level marketing is because we're getting them at the top, and our goal is to funnel them down, and obviously, the triangle method, or an iceberg, you're not gonna get everybody that it comes in, but you're gonna get a percentage, and we're gonna talk about the math in another video, this is not the purpose of this video, but getting to it is by interrupting people, okay, and saying, hey, there's a new way to do X, Y, Z, or there's a new way for retirement, or here's three retirement secrets, that is something that piques people's curiosity. People will see, oh, right, I came on Facebook to look at my kids, but maybe that would be something that I would want to look into, and I'm gonna take 20 minutes of my day to watch a video before I talk to John, okay, and we're gonna talk about the process, again, there's so many things to talk about, so I apologize if I'm throwing things everywhere here, it's just me getting excited, but it works very well because it's an attractive product, it's high margin, which means that our cost for acquisition can be higher, we can spend more dollars on the platform, and still make a return on investment, okay, versus something like final expense, which I'm not throwing down, I'm also gonna be advertising, but we have to be tighter on our TAC, or cost per acquisition. If our average policy roams around 700, 800, well, we need to be making a sale at least every 200, $250 to hit that minimum one to three, okay, and when I say by one to three, is $1 in, $3 out, that's kind of the minimum I'm pitching for, okay, I'm obviously looking for higher, I'm obviously looking for one to five, one to six, okay, even one to 10, and so when you are advertising higher end products, yes, it's a harder sale to make, but you do have higher margins of error where you can spend three, four, $500 to acquire a customer, even more, right, six, seven, $800, because you know that your average policy roams around 25, 35, right, we'll say 3,000 for today. So it's higher ticket, it gives you more margins to play with, but it's obviously not a product that if you're brand, brand new, I would start with, I would definitely start with final expense, something that's easy, get in the groom, and it's something that you're eventually gonna wanna look after eventually, okay, so just to wrap up this video, there's a few reasons why, and I've outlined them today, but if I had to recap it, the reason why I'm gonna go with final expense and something like an IUL or a UL policy is one, final expense is an easy sell for new agents, okay, it's quick and easy, it's recession-proof, so that's it for final expense, and then for IULs, it's an attractive product, we can advertise it in a way that piques curiosity to the public, okay, and it's also higher commissions, and it's also, if structured properly, it's a very good product, all right, and the government puts a limit on this product just because it is good if structured properly, and when I say that, it's with a lower death benefit and a higher cash value, okay, and a lot of agents will be like, well, in fact, there is a conflict of interest here because for agents to make big commission, what they do is they raise the death benefit, and when you do that, the commission to the agent goes a lot higher, and so for the newer agents, if you're an agency owner, you have to be careful who you hire or what they do because it can bite you if they write a really high death benefit, and let's say the commission check is $9,000, and the person realizes that they've been screwed and that it's not going as planned, and they come back with a charge back or say what's going on, or they come back with the papers that I want this reversed, well, it's on you, so make sure that you, as the agency owner, overview what your agents does when you hire them. This should always be a given, but there's some people out there that haven't learned this lesson, and I've learned this lesson from someone else, which they were actually responsible for a million dollar death benefit, so you can see how that goes, okay? So anyhow, thanks for checking in. Thanks for your time today. Hopefully this was valuable as far as what products to advertise, why, and we'll probably talk a lot more of that in details, but hopefully that helped moving forward. Okay, thanks for checking in. Talk to you guys in the next one. Bye.