If you’re like most financial professionals, you want to have a number of solutions at your disposal to meet client’s needs. Where do you rank life insurance on this list? If life insurance isn’t a key solution you offer clients, maybe it should be. If you don’t prioritize life insurance, you may be missing important opportunities to help clients meet their protection needs.
So much more than it was before.
Life insurance used to be all about death: A client bought life insurance. He or she died. His or her spouse and kids got the money. Straightforward and simple, really. But today, life insurance is so much more than that! Life insurance is really also about life … and how you can make it better for clients.
It’s a one-stop shop for a dynamic and flexible financial solution.
Life insurance can help with:
And in most cases, one policy can provide flexibility for each of these! What other financial product can help in this way? Which clients would like a financial solution that can give them so many options? Which wouldn’t?!
Life insurance lets them do more with less.
Did you know that life insurance could give clients so many options and flexibility with their dollars? A policy with guarantees, the ability to grow cash value, and available optional riders that can provide benefits for chronic or terminal illness can help ensure that they are prepared for whatever the future brings.
Here's a hypothetical example of how it can work for clients ...
They purchase a permanent life policy with a chronic or terminal illness rider for $50,000.
- When they die, their beneficiary gets a death benefit of $1,000,000.
- If they become chronically ill, meet the terms of the rider, and want to accelerate their death benefit to have a better quality of life they can get access to up to $1,000,000. Using the chronic illness rider will reduce the death benefit left for beneficiaries on a dollar-for-dollar basis. Basically, if the client doesn’t use it for themselves if they get sick, their beneficiaries get it.
- If the policy has the potential to grow cash value, your clients can access any available cash value through a policy loan or withdrawal* and use the money for any purpose:
- Supplement their retirement income.
- Use it to pay for something unexpected.
- Help supplement their business’ cash flow.
- The whole amount is tax-advantaged at the insured’s death. Here’s why: The death benefit goes to the beneficiaries typically tax-free (per IRC 101(a)). What’s more, it doesn’t pass through the insured’s estate, so it isn’t included in the value of the estate when it comes to determining its subjection to estate taxes. And, if the policy is owned by a trust, there may be even more tax advantages.
People need life insurance. If not you, then who?
The bottom line is that life insurance is one of the only financial products available that can meet so many different needs for clients. It is more dynamic and flexible than you may think. If you’re not talking with them about it, who is?