Vendors of life insurance leads sometimes make them sound like the holy grail. Just buy their life insurance leads and the sales will almost make themselves. While this is an overstatement, it makes a lot of sense to outsource your prospecting if you can find a life insurance lead vendor who can deliver quality and timely leads and eliminate all that time you would normally devote to prospecting.

It is with this in mind that you should approach any individual or company which offers you the opportunity to buy life insurance leads. It's not absolutely the same situation – of course – but the exaggeration is necessary to make a point. Don't believe someone who tells you they can deliver you a potentially six- or seven-figure wealth creation stream for a one-off fee in the region of $50 or less. Chances are that they're exaggerating.

So does this mean that you should always pass up the opportunity to buy life insurance leads? Definitely not. But you should certainly do a good bit of research into the claim before you take it to be true. After all, if these leads are so golden, why are they passing them up for a fraction of their eventual worth? There in fact is a good answer to this question.

Yes, they may have their reasons. They may have retired from the insurance game and want to make sure that their hard work doesn't go to waste, while making themselves a nice little income stream. They might just have so much business that they're absolutely snowed under. Most likely, the life insurance lead vendor is not in the life insurance business at all. They are a professio9bnal lead generator—an expert marketers—that knows how to use direct mail, the Internet, direct response advertising—in order to generate decent leads which they sell.

Usually, they generate their leads from informative websites on the subject of life insurance and they'll sell them to you either in bulk or as an exclusive lead. Purchasing these life insurance leads can be a good way to increase your business during slow periods, although they aren't nearly as targeted as leads you find yourself. But before you sign up to buy these life insurance leads, be sure you understand the company's terms – you may only have a certain amount of time before your exclusive leads turn into the less valuable bulk shared leads (tip—get the terms in writing).

So before you buy life insurance leads, you need to go into the situation with both eyes not only wide open, but also darting around at given intervals looking for holes in their story. If a story sounds too good to be true, it probably is. By doing your research, you may just find the grain of truth in what they're telling you that puts you on the right foot. But if there's any way that you'll end up on the losing end of the deal, politely decline their “kind” offer for life insurance leads.