- Life insurance is a key part of the financial guidance ecosystem.
- A quality conversation about life insurance with your client may help them feel positive about getting the proper coverage.
- Encouraging clients to purchase young and to maintain a healthy lifestyle could save them money.
As you know, life insurance is a crucial part of good financial guidance. But not all clients will see the inherent value in buying any, let alone, determining the right amount of coverage for their family’s needs. So how can we engage our clients on the subject of life insurance and encourage them to get proper coverage? Try these three conversation topics.
1. Plan your legacy
Talking about the inevitability of your client’s passing is never a fun subject to broach. But there’s a common phrase about life insurance that really captures the essence of why we buy it in the first place: You don’t buy life insurance because you’re going to die, you buy it because your loved ones are going to live.
Help your clients understand the reality of the expenses they will leave behind: car payments, mortgages, estate taxes, funeral expenses, and day-to-day expenses that their incomes currently provide for. Their life insurance policy won’t simply be a financial product, it will be a legacy for their loved ones to use and enjoy.
2. Your age + health matter
Focus on the “life” part of life insurance. Since age and health are the two most important factors companies consider when setting premiums, you can start by encouraging your younger clients to buy coverage ASAP. It will be cheaper and could save them thousands of dollars over time. Encourage all of your clients to keep their premiums low by making healthy choices that prevent disease and other chronic health problems.
3. Invest in the future
There’s no ignoring it. The tax-deferred cash value earned on a permanent policy is hard-working money that could one day benefit your client’s loved ones. In addition, the option for the client to borrow against the cash value on their policy can help fund things like college tuition or a down payment on a home with relatively low borrowing rates. And with life expectancy rising from 70 in 1960 to over 79 in 2017, permanent coverage may be important for a client looking to provide for their spouse should they outlive them by 20 or 30 years, a definite possibility these days.
Things to Consider:
- Talking about life insurance might be difficult for some clients. Try to focus on the good they’re doing for their loved ones and the legacy they’re working to leave behind.
- Use this opportunity to share information with your client on how to lead a healthy lifestyle. There are links to useful information within this article and a growing stable of healthy lifestyle guidance at Transamerica’s Knowledge Place.
Neither Transamerica nor its agents or representatives may provide medical, tax, investment, or legal advice. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely on their own independent tax and legal advisors and financial professional regarding their particular situation and the concepts presented herein.
Transamerica Resources, Inc. is an Aegon company and is affiliated with various companies which include, but are not limited to, insurance companies and broker dealers. Transamerica Resources, Inc. does not offer insurance products or securities. The information provided is for educational purposes only and should not be construed as, medical, insurance, securities, tax, legal or financial advice or guidance. Please consult your personal independent advisors for answers to your specific questions.