Death is a natural part of life. Or so the saying goes. Of course, when it comes time for a client to sit down and start planning for the reality of death, it's often a challenging conversation.
People don't like to talk about it because it is uncomfortable and scary. Unfortunately, that fear can cause even typically very rational clients to act illogically. For example, fear of death can make clients put off buying life insurance. Some even think that buying a policy is like tempting fate and makes death more imminent.
The responsibility might fall on you to help clients overcome this fear. With empathy, understanding and practical insights you can help your clients reduce their fear of buying life insurance.
Encourage them to think about a lasting legacy
For most people, the important things in life are health, happiness and family. People want to protect their families, and life insurance is one way to help do that.
Rather than telling a client they must have life insurance in the event of their death, reframe the conversation. Put the ball in their court and put focus on their family and lasting impact. Ask, "What would you like to leave as your legacy after you're gone?" Or, "What kind of long-term financial wishes do you have for your loved ones?"
These questions might be a great way to open the door to discussing life insurance and how their loved ones may use a death benefit to pay off debts, cover educational costs or build for the future.
Offer clear and honest information
A big reason why so many people don't have life insurance is that they've heard so many incorrect myths and misconceptions about it. A 2024 study from LIMRA found that over 102 million Americans say they need (or need more) life insurance.1
The biggest reason? The cost. LIMRA found that the top reason given for not purchasing life insurance was the cost. Yet 72% of Americans overestimate the true cost of a basic term life insurance policy.2
Sit down with your client and run the numbers. It can help them see that what they think they'll pay for their coverage needs, and what they'll actually pay, can be very different.
Highlight how age and health impacts premiums
If you're working with younger clients, try to convey how their health plays a significant role in life insurance premiums. The younger and healthier they are, it's likely the less they'll pay for their coverage.
Many people are also scared of life insurance because they don't want to undergo the medical exam. They're afraid of the discovery of some undiscovered illness, or they'll turn out not nearly as healthy as they think.
If that's the case, highlight types of life insurance policies don't require an exam. And for those that do, it's often a quick and painless visit, typically under 30 minutes. Also, you can highlight that in the long run, it's better to be aware of any conditions or potential issues rather than remain in the dark.
Reinforce healthy habits
For some of your older clients, discuss healthy lifestyle habits. In addition, remind clients that older people in good health can still get affordable life insurance coverage.
Building healthy habits include visiting the doctor regularly for preventative checkups. A recent study found 37% of men and 55% of women have skipped, delayed or avoided preventive care in the past year.3 Women are also underinsured compared to their male counterparts.4
Healthy lifestyle habits for both men and women include:
- Eating a balanced diet with lots of greens
- Reducing stress at work and home
- Getting regular exercise
Don't forget to talk about mental health, too. Many people struggle with mental health issues, including stress and anxiety, which impacts their physical health. According to a recent KFF Women's Health Survey, 28% of women between 18 and 64 describe their mental health as "fair" or "poor."5
Empathy wins the day
While planning for a difficult conversation, empathy and kindness are vital. As an expert with deep knowledge of life insurance, you have the opportunity to educate with the facts and banish myths, which can help remove some of the mental barriers and fears your client has against buying a policy.
Need help combatting other reasons clients avoid buying life insurance? Learn how to dispel the myth that life insurance is too expensive.
Resources:
1. LIMRA, 2024 Life Insurance Fact Sheet.
2. LIMRA, 2024 Life Insurance Fact Sheet
3. Healthline, "Men's Health 2023: Healthcare behaviors and attitudes," June 12, 2023.
4. LIMRA, 2024 Life Insurance Fact Sheet
5. Kaiser Family Foundation, 2024 Women's Health Survey.
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