Why Sell Life Insurance?

Just started selling insurance? We got your back. Below is a quick debrief to how your insurance sale can help protect families full circle.

What are the benefits of life insurance?

You know it’s good. Now they just need to know why.

Find out why-

CASH- Life insurance can provide cash to help your customer’s beneficiaries replace income when you die. This money goes to their beneficiaries and can be used for anything — funeral expenses, living expenses, college tuition, mortgage payments, donations to charity.

Death is EXPENSIVE — the average funeral costs nearly $10,000 — not to mention medical bills after a hospital stay or extended illness. You can help get them a great deal on life insurance and that can pay for these debts and give their family time to grieve and worry about the important things.

When talking to your customers, talk with them about their family budget: if they didn’t bring in another paycheck, what would happen? Could their partner make up the difference? An influx of cash can keep the surviving spouse in their home or their children in college, if not forever, at least until they can make another plan.

Benefits of Term Life Insurance
There are several types of life insurance that you can sell, but the most popular type, and the one that makes sense for the general population, is term life insurance. You sell this to last until their debts are paid off (generally a 20- to 30-year term). The benefits you can offer include:

·         Term insurance is easy to understand.

·         Term life insurance is the cheapest life insurance they can buy.

·         If they buy term life insurance when they are young, they can lock in low rates.

·         Term life insurance is purely an insurance product and doesn’t have a savings or investment component. This is a good thing — they can increase your returns by investing and saving on their own.

·         If they have a term life policy and can no longer afford it, they won’t lose anything more than the premiums they have paid if they decide to abandon the policy.

Benefits of whole life insurance
Alternatively, whole life insurance is a permanent insurance product that combines investing and life insurance. Once they buy a policy, as long as they continue to pay premiums (or build up enough cash value to cover the premiums), they are covered until they die. Whole life insurance can cost four times the amount of term life insurance, but it also has its own benefits:

·         Combines life insurance with an investment component.

·         The cash-value component can be used for them as part of a complex estate-planning strategy.

·         Works as a forced savings vehicle.

·         They can often take out loans against the cash-value portion, although this could decrease their death benefit.