The Best Way to Talk about Life Insurance

 

Option5Talking about life insurance can often times be a tricky and uncomfortable subject with people. In fact, a majority of the public are uninsured simply because they do not want to have a discussion about the idea of death. But why does this talk have to be so difficult? Shouldn’t everyone want to be advised about how to further better prepare for the future? While this is true, one thing you need to understand is the emotional mindset people associate with life insurance. Once you are able to get into this perspective, then you will be able to provide the most educational information for your clients.

When selling life insurance, you want to enter in the mindset of an educator and teacher. Treat every client as a blank slate. Most case scenarios, clients are either unaware or uninterested in life insurance. Your first job is to grab their attention. Like any sales representative, you need a way to have them listen. Forcing a group of people in a room to listen to you speak for fifteen minutes is not the most effective way to pull clientele. The best was is to hook them with a strong introduction. Start off with a variety of questions or even tell a story. The more relatable the introduction is to the person, the more interested people will get.

Once you have established a strong introduction, it is time for you to talk about life insurance. During this process, it is important that you are both informative and relatable. To be relatable, you want to keep in mind that some of the information may be too complex for people to understand. Simplifying this information in more relatable concepts can really hold the attention of the entire group. Do not mistake this for not providing any information. Life insurance is a very complex topic that needs to be broken down before someone can make a commitment. Providing this information, in the most simplistic understandable way, will keep the attention and interest of your customers.

As you present your information, make sure you are also personable and honest. The topic about death can be a very taboo discussion. Relating your own experiences and the value that life insurance brought to your life can ease people’s tension. Even if you have not had a personal experience with life insurance, talk about the securities it can have for the people you care about. Create hypothetical examples of why life insurance is necessary and why they should get it for themselves.

Last but not least, answer all questions. Many people still have a variety of questions about how the overall process works and what they should do if they want to start, continue, or transfer from one life insurance to the next. To do this, it would be in your best interest to stay an additional ten to twenty minutes just in case there are a few people who want to talk to you. Also, do not be afraid in approach people individually if they have any questions. Sometimes, people will reframe from asking their question because they are timid in speaking in front of a large group of people. This will give you an opportunity to continue educating those who want to learn more and also potentially gain a client.

Why you Need Life Insurance When you are Young

life-insuranceIn today’s modern age, the idea of exploring and traveling has become incredibly prevalent within many young professions in their early twenties to their mid-to-late thirties. As exciting as traveling can be, we must also understand the dangers one could get from those trips. Even if it is a quick weekend trip in the woods, you never know what could happen.

If you are single, it would be to your best interest to start thinking about life insurance. Now I know what many of you are thinking. You don’t have the financial responsibilities of another person or life. You want to use that money for something more gratifying. You do not plan on dying any time soon. While all of these are true, life insurance is used more than just a tool to keep your family financial stable during the loss of a love one; in fact, it provides you with many advantages especially at a young age.

debtjpg-8025cd82f36e31a6Pay off your debts:

As a young professional, many of you are beginning to assimilate into adulthood by purchasing your first car, home, or even credit card. Unless you have been paying in full, many of you have begun accruing debt in the most reasonable way possible. However, if something were to happen to you, your life insurance would be able to financially fund your various debt leaving you’re parents or guardians free from the financial burden.

Locking in a good life insurance rate:

At a young age, you can get an affordable life insurance plan at a very reasonable cost. Locking that rate in a long-term policy can be advantageous especially in the future if you are going to get married or going to have children. Imagine buying a 30-year term life insurance policy. For those thirty years, you will be paying the same amount as the price you purchased it. This will provide you incredible coverage and a financial safety net to alleviate you of any extreme situations.

papercutoutsHelping the family

Life insurance delivers additional features that provide legacy planning for your immediate family members. Imagine how many people can benefit from your policy. It is of course hard to conceptualize, but that is what it is when you are planning for the future. You need to begin thinking about the unknowns and the worst-case scenarios to better protect you and your love ones even if you do not have a family of your own. Your policy could do a variety of things. They can send someone in your family to college, they can pay off your parent’s expenses, or they can even contribute to a cause or charity that you are passionate about. Regardless of how it is used, it will create a lasting legacy for your name.

6 Quick Facts About Life Insurance

family-593188_640Life Insurance can be a tricky topic and often times people are not really sure what they should be buying when it come to a life insurance plan. This misunderstanding has led to a significant portion of the population being left uncovered or inadequately covered by their life insurance plans. I found this great article which outlines some myths of life insurance that I thought would be important to share. Hopefully these facts below will help you understand the true reality of life insurance and how you can best protect you and your family.

1) Group life insurance coverage through work is not always enough. Although rates can be lower through group coverage, people insuraged only through group life insurance have the lowest average amount of coverage and often need supplemental coverage.

2) If you lose your job then you lose the life insurance coverage provided through your employer. While some states require providers to offer the option of rolling over term coverage into an individual policy, not all states do. Make sure that if you lose your job that you ensure you are properly covered going forward.

3) Most people think that when the have their first kid is when they need to purchase life insurance. However, 72% of married workers actually have life insurance and just 75% of married couples with young children have life insurance.

4) Many people think that you have to pay taxes on the death benefit from a life insurance policy, however, in almost all situations, benefits paid upon death are not taxed.

5) A common belief is that if you don’t have children then you don’t need life insurance. Life insurance is important for anyone who provides for others, regardless of if you have children or not. If you have large private student loans, you are supporting your partner or other family members, or you share a mortgage with a partner, then life insurance is a good idea. For those with children, however, a life insurance policy should be a necessity.

6) Most people are offered life insurance plans through their employer. In fact, 56% of all workers had group life insurance coverage through their employers in 2010.

One Combo, Please

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Paying for long-term care always raises the question: “Is it really better to be safe than sorry?” For many people, this kind of insurance would be immensely valuable if they ever found themselves in need of a nursing home, assisted living, or palliative care. Proponents may try to scoop up these policies no matter what, with the familiar kafkaesque chorus of “better have it and not need it, than need it and not have it.” However, there’s a mighty cost issue. If you never need this type of attention or treatment, then you have, quite frankly, wasted thousands of dollars. Luckily, Orange County Register’s Barbara Marquand reports on a policy that combines long-term care with life insurance.

 

Basically, these combination packages allow you to take the safe route, as your money goes towards long-term care not generally offered by Medicare or health insurance. If you don’t actually wind up using these benefits (or if you don’t max them out), the policy will pay out a benefit to your beneficiary. Marquand provides a very understandable breakdown in her article, but as you’re reading this, keep in mind the key takeaways:

  • The average cost of these policies is around $75,000, and the benefits of long term care are several more than your premium payments.
  • The long-term payout and the beneficiary’s payments will be in some sort of equilibrium. The less long-term care you receive, the more money is paid in the death benefit, and vice versa.
  • Your current state of health will play a role in the overall cost for coverage, or whether you can receive it at all. Some issuers require a physical, for example.

 

Although these combination policies offer a number of benefits– like acting as solid investment and potential money back guarantees– keep in mind that they are expensive. That $75k includes the long-term care, so if you don’t actually think you’ll need it, you’re probably better off passing over the combination for a life insurance-only policy. In that case, it is better to search for a more traditional life insurance policy. It is also ill-advised to opt for a combination plan if you are only in need of temporary life insurance. Lastly, if getting this combination means going broke, stay away. There’s no need to risk everything when you’re not even sure if you’ll need the offerings.

 

Marquand parts with a few words of advice for those who may decide on the combination. In addition to comparing quotes from various agencies, definitely be sure to look into their financial strength ratings. You don’t want to wind up depending on your policy if they can’t pay out!

 

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