How to Sell Indexed Universal Life Insurance

Written by: Mary Gerardine

Last updated:

How to Sell Indexed Universal Life Insurance

Selling indexed universal life (IUL) insurance requires an understanding of the product, marketing knowledge, communication skills, and a commitment to serving the best interests of your clients.

Indexed universal life insurance combines life insurance with an investment component tied to a market index. To sell IUL insurance, you must know how the policy works — including potential risks and rewards — in order to help your clients make informed decisions.

In this guide, we help you get started on how to sell indexed universal life insurance with digital marketing strategies and tips. We also list the common steps on how to become a licensed IUL insurance agent.

How to Sell Indexed Universal Life Insurance Successfully

At its core, an IUL policy is a type of whole life insurance. It’s suitable for those who need a death benefit to protect their dependents or beneficiaries.

In addition, IUL policies are long-term financial products. They’re typically suitable for people with long-term financial goals, such as supplemental retirement savings, estate planning, or funding a child’s education.

Indexed universal life insurance agents often consider each potential client’s unique financial situation, goals, and risk tolerance to determine if they’re suitable for an IUL policy.

To sell IUL insurance policies, you can use digital marketing platforms such as websites, social media, email newsletters, and online advertising to effectively reach and educate potential clients about IUL policies.

Social Media

Social media can be an effective marketing tool for selling IUL insurance when used correctly.

Here’s a basic guide on how you could use it to sell IUL insurance.

  • Educational posts: Share content that educates your audience about IUL insurance, its benefits, who it’s suitable for, and how it works. This can be in the form of infographics, short videos, blog posts, podcasts, or simple text updates
  • Engagement: Engage with your audience by responding to comments and questions. Encouraging discussion helps to build relationships
  • Live Q&A sessions: Host live Q&A sessions where you answer common questions about IUL insurance. This can help demystify the product and address potential concerns
  • Ads and promotions: Use social media ads to reach a wider audience. Most platforms allow you to target ads based on demographics, interests, and behaviors, allowing you to reach your ideal client profile
  • Webinars and online events: Host webinars or online workshops to provide in-depth information about IUL insurance. Promote these events on your social media channels

Indexed universal life insurance is an insurance product that many consumers may not understand. Social media provides a platform to educate potential clients about the features, benefits, and risks of IUL insurance.

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Content Marketing

A content marketing strategy for selling IUL insurance involves creating and sharing informative, engaging content that helps potential clients understand IUL policies and their benefits.

Below are some strategies for leveraging content marketing.

  • Identify your target audience: Before creating any content, you need to understand who your target audience is. What are their needs, concerns, and interests? What do they know about IUL insurance, and what do they need to know?
  • Plan your content: Based on your target audience, plan the types of content you’ll create. This could include blog posts, videos, infographics, ebooks, webinars, podcasts, email newsletters, and social media updates
  • Measure your success: Use analytics tools to track the performance of your content. This can help you understand what’s working, what’s not, and how you can improve your content marketing strategy
  • Case studies and success stories: Write and share stories of how your clients have benefited from IUL policies. This can help potential clients see the real-world impact of these policies

In your content marketing efforts, it’s important to provide accurate, unbiased, and useful information. Always consider what your target audience wants to know and how you can provide value to them.

Recommended: If you are interested in boost-starting your content marketing campaign, have a look at Sitetrail’s premium press release services.

Pay-Per-Click Advertising

Unlike organic search engine optimization (SEO) strategies that can take months to yield results, pay-per-click (PPC) ads can provide immediate visibility on search engine results pages. This can be especially useful for new insurance agents that are still building their online presence.

Here are some of the ways you can use PPC advertising to drive traffic to your IUL insurance products and services.

  • Understand your audience: Before starting with PPC, you must understand who your target audience is, as well as what their primary interests will be
  • Create ad copy: Write ad copy that clearly and concisely explains the benefits of IUL insurance and why someone should choose your services. Include a clear call to action (CTA), such as “Get a free quote,” “Learn more,” or “Contact us.”
  • Target your ads: Use the targeting options in the PPC platform to show your ads to your ideal audience. This could involve targeting based on keywords, location, age, interests, and more
  • Monitor and adjust: Regularly review the performance of your ads and make adjustments as needed. This could involve changing your ad copy, targeting different keywords, or adjusting your bid amounts

Make sure your ads both: provide accurate information about IUL insurance and your services, and comply with all relevant advertising regulations.

Email Marketing

Email marketing allows you to personalize communication with your potential clients. You must always provide accurate information about your insurance products, and respect the privacy and preferences of your subscribers.

Here’s how you can leverage email marketing to sell IUL insurance.

  • Build an email list: You need a list of people to email. You can build this list through lead generation tactics on your website, like offering a free guide or newsletter in exchange for an email address
  • Send informational content: Send regular emails that educate your subscribers about IUL insurance. This could include blog posts, videos, infographics, case studies, and more. The goal is to help your subscribers understand the benefits and features of IUL insurance
  • Promote your services: Along with educational content, you can also send emails promoting your IUL insurance services. This could include information about your policies, testimonials from satisfied clients, or special promotions
  • Include a CTA: Every email should include a clear CTA, like “Contact us for a free quote,” “Schedule a consultation,” or “Download our free guide”
  • Track your results: You can use email marketing software to track clicks and conversions from your emails to understand what’s working and what’s not
  • Comply with data privacy rules: You must obtain explicit consent from individuals before sending them marketing emails and provide an easy and clear way for recipients to unsubscribe from future emails. Companies must respect the user’s rights to access, correct, or delete their data

Email marketing provides an opportunity to educate potential clients about the benefits and features of IUL insurance. With regular email communication, you can help build relationships with your potential and existing clients.

Building a Website

Your website is often the first impression potential clients have of your business, so it’s important to make it professional, informative, and user-friendly.

Here are some steps to guide you through the process of building your website.

  • Choose a domain name: Your domain name is your website’s address on the internet. It should be easy to remember, related to your business, and as short as possible
  • Design your website: Your website should be clean, easy to navigate, and responsive (meaning it works well on both desktop and mobile devices). If you’re not comfortable with web design, consider using a website builder that provides customizable templates
  • Create your content: Your website should provide clear, accurate, and helpful information about IUL insurance. This includes your Homepage, About page, IUL Insurance page, Blog, and Contact Us page
  • Implement SEO strategies: SEO involves optimizing your website and its content to rank higher in search engine results. This can involve using keywords related to IUL insurance or linking to high-quality external resources
  • Add a lead capture form: This can be a simple form on your website where visitors can enter their contact information to receive a quote, schedule a consultation, or subscribe to your newsletter
  • Track and update: Use analytics tools, like Google Analytics, to monitor your website’s performance and make updates as needed

If you don’t have a website, you’re missing out on a large potential market. Having a professional, well-designed website can go a long way in establishing your credibility as an IUL insurance agent.

Recommended Software

We recommend the GoDaddy Website Builder as a small insurance agent company. GoDaddy meets most small business needs while providing an extremely straightforward user experience.

Tips for Selling Indexed Universal Life Insurance

Selling IUL insurance can be challenging due to its complexity, but with the right approach, you will find that you will be able to successfully sell these types of policies with ease.

  • Master the product: Make sure you fully understand the features, benefits, and risks of IUL insurance. You should be able to explain how the cash value life insurance accumulation works, how the interest is credited based on a stock market index, and what the guarantees and caps are
  • Consultation and needs analysis: When you meet with potential clients, conduct a thorough needs analysis to understand their financial situation, goals (e.g., permanent life insurance, etc.), and risk tolerance. This will help you determine if a life insurance policy is a good fit for them
  • Address misconceptions: Some people may have misconceptions about IUL insurance, like thinking it’s a guaranteed way to earn high returns. Be honest about the risks and potential downsides, and help clients understand
  • Use real-life examples: Use case studies to show how IUL insurance can provide benefits in various situations, such as providing a death benefit or supplementing retirement income
  • Building and maintaining client relationships: Successful life insurance agents build long-term relationships with their clients. This involves regular communication and follow-ups, and can lead to repeat business and referrals
  • Leverage professional networks: Industry events, such as insurance conferences, seminars, and trade shows, are great opportunities to meet other professionals who may be able to refer clients to you or provide valuable advice
  • Stay current: The life insurance industry is constantly evolving, with new products, regulations, and trends. Stay updated on these changes so you can provide the best advice to your clients

As an insurance agent, your role is to help clients find the best insurance solutions for their needs. For some clients, IUL insurance might be the best fit.

For more information, have a look at our How to Sell Insurance article.

How to Become an Indexed Universal Life Insurance Agent

Becoming an IUL insurance agent involves several steps. Here’s a general guide on how you can obtain your license.

  • Pre-licensing course: Most states require you to complete a pre-licensing course before you can take the insurance licensing exam. This course will cover the basics of insurance, state laws and regulations, and specifics about the types of insurance you’ll be selling
  • Licensing exam: After you complete the pre-licensing course, you’ll need to pass a state licensing exam. The exam will test your knowledge of insurance concepts, laws, and regulations. You’ll likely need to pass a separate exam for each type of insurance you plan to sell
  • Fingerprint-based background check: Some states require that you must undergo a fingerprint-based background check as part of the licensing process. This process may vary by state, along with different fees
  • Apply for a license: Once you pass the exam, you can apply for an insurance license from your state’s department of insurance. The application will likely include a background check
  • Application review: After completing all necessary requirements, your application and background check will undergo a review process. The duration of this process can range from a few days to several weeks, which varies by state
  • Continuing education: Most states require insurance agents to complete continuing education courses to renew and maintain their licenses. These courses can help you stay current on changes in the industry and continue honing your knowledge and skills

Becoming a licensed index universal life insurance agent is only the first step. To be successful, you’ll need to develop your product knowledge, marketing, and sales skills.

Recommended: For more information, we recommend having a look at our state-specific How to Become a Life Insurance Agent article.

How to Sell Indexed Universal Life Insurance FAQ

What are the benefits of selling IUL policies?

Indexed universal life policies can offer higher potential returns than traditional universal life policies, making them appealing to certain clients. As an agent, selling IUL policies can help diversify your product portfolio and increase your potential earnings.

Who is the ideal client for an IUL policy?

IUL policies are best suited for those who need life insurance, have a view on long-term investment, and are looking for additional ways to save for retirement or other long-term financial goals.

What kind of licensing do I need to sell IUL policies?

To sell IUL policies, you’ll need a life insurance license. The requirements for obtaining this license vary by state but typically involve completing a pre-licensing course and passing a state examination. For more information, check out our How to Sell Insurance article.

How can I build a successful career selling IUL policies?

Building a successful career selling IUL policies involves a combination of product knowledge, sales skills, a commitment to serving the best interests of your clients, and a proactive approach to networking and marketing. You must develop strong relationships with your clients, as this can lead to referrals and repeat business.

Is selling IUL insurance a good way to make money?

Yes. The income from selling IUL policies typically comes from commissions, which can be substantial. Note that IUL policies are suitable for people interested in long-term investment and are comfortable with the risks associated with equity markets. For an overview of how an insurance agent makes money, visit our How Do Life Insurance Companies Make Money page.