The purchase of life insurance usually coincides with a major life change be it marriage, the birth of a child, or the death of a spouse. A brief overview of the different types of policies will give an indication of the targeted market for each product.

There are two main types of insurance: term and whole life. Term life insurance is the most simple. A buyer pays a set premium for a predetermined death benefit to be paid to beneficiaries. If the insurance buyer stops paying the premium, the policy is no longer in effect and the insurance company has no further obligations. Because of its more affordable pricing, term insurance is most often purchased by people with a large amount of financial responsibility in terms of mortgages, future college expense, and other debts. The best leads for term insurance buyers would be young parents and young professionals with sufficient income to secure multiple assets, yet low enough to prohibit any significant accrual of cash savings. The best leads will be at or slightly above the median income for the area.

Whole life insurance differs in that the policy accrues cash value and is designed to protect a person for their “whole life”. Rates are higher because whole life policies are considered and investment tool and are guaranteed to pay out at some point in the policy. There are a few variations of whole life policies and each has its appeal to a different demographic.

Universal life is a type of whole life insurance that offers flexibility. The death benefit can be increased or decreased as insurance needs change. Buyers also have the flexibility to determine how much of the premium is invested versus how much is used for providing insurance. Universal life policies appeal to younger professionals with sufficient income to absorb the higher premiums of a whole life policy and the anticipation that the investment tool will become more important than the death benefit.

Variable life policies allow the policyholder to invest the cash value of the policy into more aggressive markets, such as stocks and bonds, within the insurance company’s portfolio. The death benefit and the cash value of the policy are directly related to the performance of the investment. Its primary use is as an investment tool to defer taxes for those who may have maxed out their yearly investments into tax deferred retirement accounts. The best leads will be higher income individuals within ten years of retirement.

Life insurance has universal value. Careful consideration of target demographics can improve the quality of life insurance leads and raise the conversion percentage dramatically.