Whether you’re an independent agent, part of a larger agency, or exploring new ways to generate leads, Facebook ads can help you build a reliable pipeline of prospects more efficiently than relying on third-party lead vendors. While buying shared leads often results in high competition and reduced ROI, creating your own ads gives you full control over targeting, messaging, and ultimately, lead quality.

That said, one universal challenge remains: ad content. Simply running an ad isn’t enough—it must be structured to attract potential insurance clients, build trust, and convert that interest into high-quality leads. In this article, we’ll outline how to design effective Facebook ads for insurance agents, showcase which ad formats are most successful, and explore how AI-powered UGC (User-Generated Content) can help you consistently produce winning creatives.

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Why Facebook Ads Work for Insurance Agents

Relying on lead vendors can be expensive and often yields leads that are recycled and sold to multiple agents. 

By generating your own Facebook leads, you can:

• Own Your Lead Generation – Eliminate middlemen and keep all leads exclusive to your agency.
• Control the Ad Content – Ensure the message reflects your agency’s unique approach (rather than generic or misleading ads).
• Reduce Competition – Stand out in a market dominated by generic lead vendors.
• Scale on Demand – Once you find a profitable campaign, increase your budget to generate more leads.

Because Facebook’s targeting capabilities allow you to zone in on life events, age brackets, and interests, you can deliver your ads to qualified prospects looking for the insurance solutions you provide—be it life, final expense, health, or property and casualty.

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Three Best Ad Formats to Drive Quality Insurance Leads

Below are three creative formats frequently used by top-performing campaigns across multiple niches, including insurance. Remember, test everything—the best results often come from trying different angles and visuals.

1. Instant Form (Lead Ad) with Simple Visuals

Using Facebook’s native instant forms is a foolproof method for capturing leads directly on the platform—no external landing page required.

• Why It Works:some text
  • Minimizes friction (users don’t have to leave Facebook)
  • Pre-filled form fields (name, email, phone) boost conversion rates
  • Quick to create and optimize
• Tip: Keep your forms short. Asking for too much personal info may deter prospects—especially for high-level insurance like final expense or health plans.

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2. Video or Carousel Ads Showcasing Key Benefits

For agents offering multiple insurance products (e.g., home, auto, life, and final expense), a carousel ad can display each coverage type in separate panels. Alternatively, a 30-60 second video can highlight your approach, your service benefits, or simple tips about choosing coverage.

• Why It Works:some text
  • A video or multi-image carousel can quickly convey multiple benefits.
  • Showcases your brand personality and expertise.
  • Encourages viewers to swipe or watch longer, increasing engagement.
• Tip: Use images of families, homes, or life events—visuals that resonate with people seeking financial protection or security.

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3. UGC-Style Ads

In an industry where trust is crucial, user-generated content (UGC) can be the perfect icebreaker. UGC-Style ads mimic real testimonials or casual “selfie” videos. Prospects are more inclined to believe authentic endorsements of your service.

Why UGC Works:

• Authentic Testimonials – People trust genuine recommendations more than polished, corporate-sounding pitches.
• Engaging & Relatable – Looks organic, not like a typical ad, so it stops the scroll better.
• Builds Rapport – Potential clients see proof of your reliability and service quality.

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One Strategy That’s Boosting Insurance Leads Right Now

Rather than focusing solely on price, many agents see success by hooking audiences with “relief” from common frustrations—such as tired of robo-calls? or no more recycled leads.

1. Hook: “Stop overpaying for leads! Learn how our clients get real coverage quotes in minutes.”
2. Explanation: Share a quick story or data point illustrating how your approach is different (e.g., exclusive leads, personalized consultations).
3. Close: Encourage them to fill out a quick form to see what coverage they may qualify for—no commitment required.

This approach resonates with prospects who’ve had poor experiences with lead vendors or subpar insurance ads, positioning your agency as a trusted alternative.

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Using AI to Create Scalable UGC Ads

Typical testimonial ads for insurance can be difficult to coordinate—especially if your clients are cautious about publicly sharing personal information. Arcads and other AI platforms solve this by letting you craft testimonial-like videos without needing real customers on camera.

How AI UGC Works:

1. Draft a Script: Craft a short, relatable script focusing on key insurance benefits: “I was so stressed about final expense coverage—until I found an agent who walked me through the process.”
2. Select an AI Avatar: Choose from 300+ avatar personalities to match your demographic (e.g., a friendly retiree figure or a middle-aged dad persona).
3. Generate Multiple Variations: Easily produce multiple versions with different hooks or overlays (like “Free Consultation” or “Exclusive Leads Only”).
4. Add B-Roll: Enhance with office shots, policy documents, or even subtle animations for an authentic, informative feel.

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How Effective Is AI-Driven UGC for Insurance Agents?

Once you pinpoint a winning cost per lead (CPL), you can scale easily. Instead of spending weeks filming real testimonials (which can be complicated by privacy or regulatory constraints), you can swiftly produce multiple AI-based UGC creatives to find what resonates.

• Faster Testing: Launch new angles or scripts within minutes.
• Cost Savings: No more hiring video crews or high-priced influencers.
• Consistent Branding: Ensure each ad meets legal disclaimers and brand guidelines.

Many agents who adopt AI UGC report a lower CPL and higher close rate, largely because they can frequently update their ads and maintain a fresh, engaging presence in the Facebook feed.

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Conclusion

When it comes to Facebook ads for insurance agents, success hinges on high-quality, trustworthy creatives and precise targeting. Instead of shelling out money for recycled third-party leads, building your own ad campaigns gives you a direct line to exclusive prospects and more control over your lead flow.

By leveraging UGC-style ads, short video demos, or straightforward lead forms—and combining them with AI-generated content—you can stand out from the standard lead vendor crowd, drive down your CPL, and nurture a more loyal client base.