If you’re new to the insurance world, or an experienced agent looking for a new market, I suggest selling insurance to the Baby Boomer senior citizen market.
This article will explain why this particular market offers new opportunities not just now during the COVID pandemic but also for the foreseeable future. Let’s begin!
The short term
First, let’s talk about some of the short-term benefits you’ll experience right now by selling insurance to the Boomer market.
It’s October 2020, and the pandemic is still in full force. And while many industries have suffered, selling insurance to senior citizens has remained profitable. The COVID outbreak has encouraged people to take life and health insurance more seriously, especially the Boomer generation.
People worry about being exposed to COVID, and despite the decrease in social gatherings, the need for insurance is still as high as ever. In my opinion, higher even, since Baby Boomers are classified as high-risk.
And with even more senior citizens seriously considering investing in life insurance, targeting this market is 100% a good idea.
Most business models depend on a healthy and robust economy. But, this isn’t the case if you work in the Boomer insurance market.
Why? Because senior citizens are retired. They rely on Social Security benefits and receive a guaranteed pension every month, making them a far more dependable market. Baby Boomers are far less likely to face financial difficulties due to a loss of income. And where other generations might drop their insurance to save money, senior citizens are more likely to continue making payments.
In other words, the Boomer market offers more stability.
The long term
- Face-to-face and phone friendly
The 2020 pandemic has really put into perspective the importance of over-the-phone selling strategies. Even with the older population preferring to do business face-to-face, we’ve discovered that more and more people are willing to purchase insurance over the phone.
That’s why we’re confident that selling insurance to senior citizens is a viable business opportunity whether you prefer to meet your clients in person or work from a home office.
There are a couple of crucial long-term benefits to consider that makes selling to Boomers a sustainable business model.
- More prospects every day
Every day, roughly 11,000 Baby Boomers turn 65 and will continue to do so for the next 10 years. By 2040, the number of individuals aged 65 and older will be 50% higher than in 2020. And I’m sure we don’t have to tell you that having a growing pool of prospects is always beneficial.
Plus, this generation tends to be more concerned with life insurance, Medicare coverage and ensuring that their retirement plan is protected with annuity type products.
- A mass exodus of agents
The average insurance agent is 60 years old. As such, we believe that over the next 5 to 10 years, there will be a mass retirement of insurance agents. Of course, not every agent will retire at once. But it’s still an opportunity that you can take advantage of. This is especially true if you’re younger and planning to be in the insurance business for decades to come.
“Why’s that?” I hear you ask. Well, a large chunk of your competition will be retiring over the next decade!
With each new generation, we are becoming more reliant on tech and AI-assisted solutions. Younger generations are happy to handle matters via email, online portals, bots, and other tech-reliant platforms.
However, the older population (thankfully) is still willing to meet face-to-face or speak with a real person over the phone. They expect a higher level of service and appreciate real, genuine human support.
This allows you to build an actual relationship with your client, which can lead to more sales. Plus, an insurance agent who works in this market will be far less likely to be replaced by technology.
Best insurance products to sell Boomers
Let’s finish up by discussing what products you should sell when targeting the Baby Boomer market.
- Final expense
Final expense insurance covers the bills that your loved ones will face after your death. It’s a mass-market product that is underrated with a substantial number of prospects increasing every day. Funeral costs are skyrocketing. And even the most financially stable of families can struggle to cover final expenses. That’s why there’s an opportunity here to help people by selling life insurance.
You are automatically enrolled in Medicare when you turn 65. However, most senior citizens feel that Medicare supplement insurance is an absolute requirement. And with the older population continually growing, there is an opportunity to sell supplement insurance products that fix the “gaps” present in the original Medicare plan.
An annuity is a type of retirement income product that you buy with some or all of your pension pot. It then pays a regular retirement income either for life or for a set period. Many seniors consider this a viable option that provides added stability and helps protect their money—as such, selling annuity products is regarded as a lucrative sales opportunity for insurance agents.
I hope you enjoyed this article and understand why selling insurance to the Boomer market is worth thinking about.
David Duford owns Buy Life Insurance For Burial, a virtual insurance agency helping seniors source quality final expense life insurance coverage. He is the author of 3 best-selling insurance sales and marketing books, including “The Official Guide To Selling Insurance For New Agents, “The Official Guide To Selling Final Expense Insurance,” and “Interviews With Top Producing Insurance Agents.” David is also a YouTube Influencer in insurance sales with nearly 17,000 subscribers and more than 1.7 million total views.
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