Key Takeaways
- Life events trigger 70% of life insurance purchases—new baby, home, marriage are top 3
- The "golden window" for life events is 2 weeks before through 6 months after
- Asking "How is the family adjusting?" opens more doors than "Do you have life insurance?"
When Life Changes, Insurance Needs Change
Client Question: "We just had a baby—should we be thinking about life insurance now?"
Life events are the #1 trigger for life insurance purchases. LIMRA research shows that 70% of policies are sold during or shortly after major life transitions.
The best time to discuss life insurance is when someone's life is changing. These moments create natural awareness of protection needs:
The Big Life Event Triggers
| Life Event | Why It Matters | Timing Window |
|---|---|---|
| New Baby | New dependent, single income during leave | During pregnancy through 6 months after |
| Marriage | Combined finances, new responsibilities | Engagement through first year |
| New Home | Mortgage protection, largest liability | During home shopping through closing |
| New Job | Income change, may lose group coverage | During job transition |
| Promotion/Raise | More income to protect, lifestyle inflation | Within 3 months of raise |
| Starting a Business | Key person, buy-sell, personal guarantee | First 2 years of business |
| Divorce | Splitting assets, possible support obligations | During and after proceedings |
| Children Leaving Home | Coverage review, possible reduction | As kids graduate |
| Grandchildren | Legacy planning, gift strategies | When grandkids arrive |
The Approach Philosophy
Wrong approach: "Congratulations on the baby! You need life insurance now." Right approach: "Congratulations on the baby! How's everyone adjusting? ... With all these changes, a lot of new parents find it helpful to review their financial picture. Would that be useful?"
The life event is your opening, not your pitch.
The New Parents
A couple expecting their first child
Setup
You're at a neighborhood BBQ and your neighbor mentions his wife is 6 months pregnant with their first child. He works in tech, she's planning to stay home for a year.
Client says:
“Yeah, we're pretty excited. Also terrified, honestly. Everyone keeps telling us how expensive kids are. We're trying to figure out how we're going to make it work on one income for a while.”
Practice Objectives
- 1Show genuine interest in their excitement and concerns
- 2Don't immediately pivot to insurance—explore their situation first
- 3Listen for natural openings about financial concerns
- 4If appropriate, offer to help them think through the financial side
- 5Get a meeting without being "that insurance guy at the BBQ"
The Home Buyers
A couple who just got pre-approved for a mortgage
Setup
A referral from a real estate agent. The couple is excited about buying their first home and the agent suggested they talk to you about "protecting their investment."
Client says:
“Hi, our realtor Sarah gave us your name. She said we should talk to you about insurance? We're buying a house—just got pre-approved for $450,000. Is this about homeowner's insurance? We're already getting quotes for that.”
Practice Objectives
- 1Clarify the difference between homeowner's and life insurance
- 2Explore what would happen to the mortgage if something happened to either of them
- 3Avoid fear-mongering—they're excited about the house
- 4Connect protection to their goals, not just risk
- 5Set a meeting to do a proper needs analysis
A friend mentions he just got promoted and is now making $150,000/year. What's the best way to bring up life insurance?