Question

Years ago, many life insurance companies used fear tactics in their marketing campaigns. I can still remember the first time I watched one of those life insurance commercials on TV. At that time, the depiction of the husband as the primary breadwinner matched our households set up. It was eerie watching those commercials that pictured family members going about their business without the man of the house around anymore. The first couple of times that this commercial aired, I was scared about what would happen to our family if my dad was no longer around. However, as the commercial droned on over time, it seemed as if the company was preying on the fear of its customers.

How could a life insurance company market its products to consumers today in such a way that customers would continually be drawn to their product?

Answer 1

Life insurance helps a person to safeguard his family members from uncertain circumstances or death. It is basically a contract that ensures that human life is insured against death, accident, illness, etc. On the completion of policy or on the death of the person, the insurer has to pay a definite sum of money to the insured or his family. The content of the marketing advertisements relating to life insurance should be so that it will educate the people about the importance of life insurance & the benefits attached to it, it should not be so that create fear in the mind of customers. In case of life insurance, developing an emotional connect with customers is very important because this emotional connection will help to convey & enhance  the companies empathy towards its customers, so marketing messages of life insurance companies should be build upon emotional connection. The employees of the company who sell life insurance should provide underwriting & consulting services i.e., the assistance & advice that employees give to their customers about life insurance contract, this will make customers feel valuable & they will refer such a company to others also, so in this way word of mouth promotion will help the company to attract a larger customer base. Proper information regarding the premium & other expenses associated with the life insurance policy should be conveyed to the people through digital platforms as these days most of the people use digital platforms to make such decisions. This will help to attract a large number of customers. Also, publicity through mobile publicity vans or exhibitions in rural areas, or giving different types of incentives to policy holders will help to promote sales of the life insurance policy. In order to advertise their product, life insurance companies can also arrange conferences & seminars which will educate people about the importance of life insurance & the various kinds of benefits attached to it & will help to attract the new customers. Also, the life insurance companies can use distribution channels such as mobile or internet in order to reach out to more customers, also these channels will help to increase profitability because by using these channels intermediaries can be avoided which will bring down overheads & thus, increase profitability. Life insurance companies can also tie up with banks, so that banks can help them to market their products to bank customers. This is called bank assurance. Such an arrangement will help the life insurance companies to sell their products to bank customers. So, such an arrangement will prove beneficial for both of them. So, these are the various ways in which a life insurance company can market its product so that the customers are continually drawn to their product.