It’s never too late for your clients to purchase life insurance, but many of them may argue it’s too early.
Some of your clients will feel as if life insurance isn’t necessary when they’re still young, healthy and growing their wealth. Often, it seems like a product for someone older, in poorer health or worried about leaving his or her family in a disadvantageous financial position.
However, it’s up to you as a financial producer to speak candidly with your clients about the benefits of life insurance, the risks of putting it off and when is the optimal time to buy.
Age doesn’t matter, family does
It’s important to emphasize to your clients that age isn’t the best way to gauge the need for life insurance. Instead, the need for life insurance is based on their financial situation and the position their families will be in down the road. For example, if your clients have numerous monthly expenses such as mortgages and auto loans, life insurance is an important tool to support their loved ones.
For your clients with children still at home, life insurance is even more vital to their financial health. Their children require years more of schooling, medical care and everyday essentials, which life insurance helps provide.
Problems associated with delaying life insurance
The older your clients become the greater the cost of a life insurance policy. If your clients purchase life insurance earlier, they can obtain more coverage for a lesser price than if they waited.
Your clients may argue that the longer they wait, the fewer premiums they back. This is true, but you should show them waiting only leads to higher premiums, decreasing or even canceling out any benefit they receive from putting it off.
While your clients will likely live long healthy lives, it’s always best to prepare for the unexpected. Healthy people can become disabled or diagnosed with a disease, which could lead to their passing. Some life insurance policies have restricted benefits if your clients pass away during the first two years of the policy, which means the longer your clients wait, the higher the risk of their passing soon after purchasing the product.
Now is the right time
If your client is young, has few financial obligations and no children, it may be reasonable for him or her to argue against the need for life insurance. But, a majority of your clients aren’t in this position – they have families and obligations that will need to be taken care of even after they are gone.
Talking about the future can be hard, but there are no guarantees in life. It’s up to you to speak without your clients about how life insurance can protect them and their families.
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