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Life Insurance

Help clients understand the need for life insurance at any age

As an insurance professional, you know how important life insurance is for your clients. It's there to help provide financial protection after they're gone, from covering final burial expenses to paying off debt and taking care of mortgage payments so families can stay in their homes.

However, that message can still get lost on prospective clients. For some, life insurance can seem confusing, feels expensive or gets pushed to the back burner because people think it's something they don't need to worry about if they are young and healthy.

That makes your role even more critical.

Tips for explaining the benefits of life insurance

Here are a few ways to communicate why life insurance should be important, and even vital, to your clients at any age.

For clients who are young and single

Life insurance is rarely top of mind for people who are young, healthy and don't have kids. Often, there's a knowledge gap with this group, especially around the myth that life insurance is too expensive.

Starting with the basics and showing them the financial side can help. Run the numbers to illustrate how costs rise over time. Make sure to highlight how being healthy, and staying healthy, can potentially save significantly on premiums over the long term.

Also, let your clients know that any debt and burial costs may get left to their parents or siblings if they don't have a policy. This isn't a scare tactic, it is reality. That may help younger clients consider why coverage is important — they don't want loved ones to have to pay for debts or expenses they leave behind.

For clients who have children they want to protect

You probably have plenty of clients who come to you before significant life events, such as a new baby or a kid bound for college. Some of these changes make for the perfect time to discuss life insurance as financial obligations grow or change.

Something else to discuss is life insurance for their kids. It's uncomfortable for anyone to think about needing life insurance for a child, so it's reasonable that your clients may not want to consider it. But, they may not know about some of the long-term benefits of child life insurance.

Focus on looking beyond the death benefits, too. There are plenty of reasons why parents may consider life insurance for kids. So covering how their children may benefit from this type of coverage throughout their life is a good start.

For clients who are millennials

Millennials aren't newly minted adults anymore. The oldest of the generation are in their late 30s and early 40s, which means they may have homes and families and are moving up the corporate ladder.

Many millennials may get their life insurance through their employer and think they're set. So, with this group, highlighting how life insurance through work may not provide enough coverage is a good way to start the discussion.

Also, take the time to learn about what's happening in your clients' lives. For example, suppose they recently bought a home, are newly married or just had a baby. In that case, it's the right time to cover why life insurance is important as a way to help protect their new and growing families.

For clients who are seniors

Your senior and retired clients may think they're past the need for life insurance. That's what their retirement savings are for, right? Well, depending on your client's needs, maybe not.

Explain to your clients that senior life insurance offers another layer of protection. And it's not just for them but for their surviving spouse and any dependents — especially if they rely on them for support.

If their financial situation may not require a lot of coverage or they are worried about budget, highlight how there are affordable burial and funeral services policies. These policies help surviving loved ones from dipping into any savings to cover those costs.

Closing the knowledge gap

A big struggle for insurance professionals is cutting through clients' confusion and misconceptions about life insurance.

Approaching it with understanding and empathy while providing the education they need helps. To start, consider compiling a list of common FAQs, building fact sheets and creating a life insurance glossary for them to go through.

Learn more about turning a shopper into a buyer.

 

SM.3919564.06.22

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