While life insurance might seem pretty cut and dry to you, it can be a tricky topic for your senior clients who aren’t quite sure if they need it.
That also goes for some of your younger clients who might have a few concerns about their aging parents. After all, life insurance needs often change as people move through different stages of life and into retirement.
With a variety of options to choose from, it’s important to help guide your clients as they navigate the process, and address some of the key factors to consider as they evaluate their options. Here’s how you can help your clients as they shop for life insurance for seniors.
Why life insurance matters
Many of your clients may think life insurance is something that makes sense while they are still in the workforce and have a spouse or a family to support; it’s a way to help protect their future.
However, many seniors, especially those who are in retirement, have adult children and may no longer be working. These clients might think there isn’t a need for a life insurance policy anymore.
Explain to your clients that in reality, the need for a life insurance policy all depends on their specific goals. It’s important to help them understand their situation and the instances where keeping a life insurance policy might end up benefiting them over the long term.
Factors your clients should consider
It’s important to help your clients look at some of the purposes a policy could serve that they might not have considered.Business Protection — For example, your clients might own a business or have other business interests. In this case, they can use a policy to potentially help provide an extra layer of protection if their business partner passes or becomes incapacitated.
Final Expenses — A life insurance benefit can also help with long-term expenses. That includes debts, health care and funeral expenses that your clients might not want to burden their heirs or survivors with after they pass. Potential health issues are an important consideration, so discuss with your clients about how health can impact wealth over the long term.
Taxes and Fees — Heirs and beneficiaries could also use the death benefit to ease the cost of taxes on tax-deferred retirement accounts, including Individual Retirement Accounts (IRAs). After your clients have passed, taxes and fees could end up eating some of their remaining retirement savings, dramatically reducing the amount left.
Family Care — There’s also special family considerations, too. You may have clients who married later in life, have a second marriage with younger children or have an adult child with special needs who requires care. In these cases, benefits can go toward the costs of future care.
Help clients start planning now
It’s never too early for your clients to start thinking about life insurance needs, both for themselves and their loved ones.
Younger clients shopping for life insurance for their parents and older clients who are already in or approaching retirement have several factors to consider when shopping for life insurance. Some of these factors include health, estate planning needs and available cash. These clients might have a larger focus on the bigger picture.
It’s important that when working with clients who are shopping for their parents that you help them understand that if they are interested in purchasing their own policies that their needs won’t be the same. They need to approach policy choices in different ways. Some younger clients, for instance, might be good candidates for a more short-term life insurance policy.
It’s critical to help clients compare different policies, including the costs and benefits and how those might change over time, depending on their age and health.
As your senior clients age, let them and their families know you’re ready to answer their questions about life insurance and help them determine the best path forward to meet their needs.
Learn more about how you can help your clients and turn them from shoppers into buyers.
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