How can your clients benefit from having Life Insurance?

12/17/2009 7:42:00 PM

Are you aware of all of the benefits of life insurance that could help you close a sale?

In your line of work, you have to know many details about various products in order to find the best solutions. When it comes to life insurance, you already know what life insurance can offer your clients:

  • Family, estate, legacy and business protection
  • Tax-free death benefit to beneficiaries
  • Potential to build equity through cash value accumulation
  • Tax-deferred cash value growth
  • Lifetime access to cash value via withdrawals and loans (within policy limits, may reduce death benefit)


But, life insurance could benefit your clients in other ways.  Below, are some lesser-known facts about life insurance:

  • Creditor protection is offered in most states – Some clients face concerns about asset protection due to their occupation or other situations. In general, life insurance cash value enjoys protection from creditors or liability claims from lawsuits (specifics vary by state). This feature may be important to clients in the medical field or other occupations susceptible to lawsuits.
  • Cash value doesn’t have to be disclosed on the FAFSA form – Clients with college-age children who are applying for financial paid must fill out the FAFSA (Free Application for Federal Student Aid) form, which requires parents to disclose assets for the purpose of determining financial need. Certain assets are exempt from disclosure, including life insurance cash values.
Return of premium is available with some policies – Some clients hesitate to purchase life insurance because they fear life circumstances will change and they may want all of their money back. Today, life insurance products that guarantee to return all premiums paid into the policy are available. This gives the client a level of comfort  knowing the initial funds invested can be returned without paying surrender charges.

Points to keep in mind:
Be sure to choose a life insurance policy that meets your clients’ long-term life insurance needs. If their personal situation changes — for example, they get married, have a child or get a job promotion — make sure the policy continues to meet their needs. Your clients should also weigh the costs before making a purchase. Life insurance has fees and charges associated with it, including costs that vary based on sex, health, age and smoking status. Riders that customize a policy to fit your clients’ individual needs usually carry an additional charge.

To find out more about all the benefits that life insurance has to offer, including some of the lesser known facts, call us at 1-800-604-9105.

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