It’s go time for financial advisors on social media

In order to be successful, financial advisors must be strong in three broad areas.

Relationships: Scope of influence, personal brand and the depth of connections.

Knowledge: Ability to provide accurate, relevant information and impart it in an understandable way.

Persistence: Having development plans, and executing consistently on goals.

How do financial professionals hone their skills and practices to sell more life insurance in current and evolving markets? It comes down to being available and helping clients and prospects understand the importance of financial security.

According to LIMRA research, two-thirds of U.S. adults either are working with a financial professional or looking for one. Consumers who work with a financial professional are more likely to be protected by both group and individual life insurance than those who do not currently have a connection but are seeking one. In fact, 4 in 10 who do not currently work with a professional say they are uninsured and need life insurance.

Consumers are most likely to buy individual life insurance when a financial professional gives them a quote. The reason most often given for declining to buy life insurance is that it’s too expensive. This objection is vastly reduced when a financial professional is involved.

LIMRA research shows only 8% of those who got a quote from a financial professional said they did not buy because it was too expensive, compared with 44% of those who got a quote from the website of a specific company.

One way financial professionals can reach prospects and clients is through an active social media presence. Unlike radio, television or print, social media can provide a deeper connection using posts, live chats and live events. Financial professionals can build social media content around the reasons that matter most when consumers think about the present, the future and life insurance.

Financial professionals can use this information to generate ideas, build relationship skills to engage with people and use technology to meet consumer expectations. Financial professionals’ social media goals can include showing up in prospects’ online feeds and “coaching a click” from viewers who want to learn more. Among those applying for life insurance in the past few years, “through a financial professional” was second only to “the website of a specific provider” as the method used to apply for life insurance.

According to our research, 8 in 10 buyers of individual life insurance policies over the past two years are millennials (52%) and Generation X (29%). These individuals, along with Generation Z, are on the front lines of social media every single day. By having an active presence on social media, financial professionals can help these buyers get the information they need and make deeper connections.

When it comes to making financial decisions, consumers are looking for someone they can trust. Financial professionals can build trust by authentically sharing proactive and relevant information about topics they know the most about. Freely share some of what you know about making financial decisions and why it matters. Embrace social media as a way to reach out and deliver compelling content about financial issues. You don’t need to be perfect — instead just strive to meet your clients and prospects where they are, whether doing research or making financial decisions.

Elizabeth Caswell is associate research director, insurance research, LIMRA. She may be contacted at [email protected].