Your job – and ours – would be a lot easier if everyone knew more about life insurance. Unfortunately, it’s one of those financial tools that’s often neglected or misunderstood.
Pulling from their experience in the field, our Regional Vice Presidents recently answered a simple question:
What’s one thing you wish everyone knew about life insurance?
Check out their responses below – they could be a great conversation-starter for your client meeting … or they could even be an eye-opener for you!
Simply how inexpensive it can be. Most people overestimate the cost of life insurance by about three times. In reality, you can potentially protect your loved ones or business and provide peace of mind for less than the cost of your cable or cell phone bill. What’s more important to you, flipping through 300 channels or protecting your family?
I wish people understood that shopping for life insurance isn’t about finding someone to run you the cheapest quote. It’s about finding someone to take your actual medical file (paramed exam and attending physician statements) to the insurance carriers and highlighting all the positives you have to negotiate lowest premium you can personally obtain.
Many people approach life insurance from the wrong direction. It's not a car or a television or tickets to a movie – it's a strategic tool. At the end of the day, everyone should plan for an unexpected death. Life insurance is not always the answer, but it is often the most efficient way to protect your family's quality of life should that happen. The beautiful thing is these vehicles are becoming more flexible, so you're often able to mitigate more than one area of exposure with one purchase.
We all insure “things” – cars, homes, boats, motorcycles, etc., and may not ever “use” the coverage. I think we would all agree that people are more important than things, so why not insure more lives?! We know we will “use” the life insurance!
Life insurance is not an option. It is peace of mind. If you have a family, a business or a favorite charity, life insurance is the perfect solution to protect those who depend on you.
Life insurance is really about providing people peace of mind – it is an act of love. No other product can ensure your loved ones are financially secure, provide educational opportunity, help pass on a legacy to future generations and provide living benefits should you need them. It is the single most important tool in putting together your financial plan.
You don’t want to think about it until the inevitable happens and it’s too late. One simply MUST include insurance in their financial plan.
Simple: That you don’t have to die to use its benefits.
Life insurance is not a death sentence, and you don’t always have to die to benefit from it. Life insurance is not here to stop you from living your life – it’s here so you can live continue to live your life to the fullest, your way.
I wish everyone knew there is more than one use for life insurance. As products adapt and change in the financial space, why is life insurance overlooked and not viewed as evolving too? The financial services industry is about leveraging the assets you have to protect yourself and family from any unforeseen and negative events. With life insurance now being able to pay for long-term care and chronic illness events, solve estate tax issues, grow money and distribute it tax-free, etc., the proper solution can be beneficial for all.
I'm all about living benefits ... I think more people need to know about the ways they can use life insurance to protect their families and businesses in situations that don't involve death – chronic illness, critical illness, long-term care, and waiver of premium are under under-utilized.
Couples retiring at 65 will experience $220,000 of lifetime health care costs, according to Fidelity Investments. Life insurance with long-term care and chronic illness riders can provide protection for those expenses.
Life insurance is a diversification tool! Diversification isn’t just about bonds, stocks and cash – it also includes the rest of your financial portfolio, which are products outside of bank accounts and retirement plans. Diversifying your income stream and overall risk are two pillars when it comes to a comfortable financial plan. You may be exposed to risks you were not even aware of. Have a plan that is consistently flexible and you can win most situations – life insurance can help you do that!
I think folks need to understand life insurance is no longer just a death benefit/protection product. Where else can you get tax-free growth/income, and yes, eventually a tax-free wealth transfer without income limits, age restrictions, IRS imposed penalties, etc.? It's another tool to help manage YOUR life ... not just other people's lives after your death.
One of the more notable improvements to life insurance has been the integration of fully guaranteed death benefits with the strong potential for cash value accumulation. Today, we're fortunate to have many products that can provide both benefits simultaneously and, as a result, give customers more flexibility and options as they log miles down the road of life. You really can have your cake and eat it too!
I wish every advisor or wealth manager had the experience and satisfaction of seeing the benefits of life insurance in action. Whether it’s loans offering financial flexibility, living benefits for long-term care or chronic illness, replacement of income due to an untimely death, the liquidation of a deceased partner’s equity in a business for their family, or the retention of a business and/or estate’s value through the payment of estate taxes, insurance coverage can change lives.
You don’t always have to die to benefit from owning life insurance. Life Insurance can create a unique tax efficiencies that make owning it crucial to any financial plan, protecting our financial wellbeing from many uncertainties during our retirement years.
People don’t like what life insurance is … but they like what life insurance does. It’s often a scary and unappealing topic of conversation, but do your family a favor to sit down with your financial advisor to learn more about what life insurance can provide – immediate estate creation, cash at a discount when it’s needed most, tax-deferred growth, tax-free income potential, long-term care living benefits, and more!
I think a lot of people only see life insurance as a death benefit product that is “sold” to them, but really it’s a tool that can help solve the client’s overall goals and needs. It’s important to meet with an advisor so they can find out what keeps you up at night, what is important to you – whether it’s saving for retirement, funding your kids’ college education, estate planning, protecting your loved ones if something were to happen, long-term care or whatever it is … life insurance could be an incredible tool to solve those needs.
The one thing that wished everyone knew about life insurance is the full extent of its capabilities. What other financial product can protect your family, protect your business, and provide supplemental income for your retirement?! And by the way, did I mention that most of the time that’s on a tax-free basis?
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