Wednesday, September 21, 2016

When Your Life Changes, Should Your Life Insurance Change Too?

I found myself at a wedding expo once, helping set up behind the scenes. There were lots of vendors there with booths touting everything from catering, photography, and flowers, to honeymoon destinations and jewelry. On the way out it struck me – I had not seen a single vendor offering the protection of life insurance to young couples that were planning a life together.

Was I being opportunistic? You bet! Mostly, I was being sincere. My wife lost her father at the age of six. Her mother was alone with a four-year-old and a six-year-old, pregnant and in the middle of Wyoming with $138.00 and no life insurance. I get very emotional about protecting children and loved ones and life insurance happens to be a way to do that. It’s not always about a huge estate and cash value. Many agents make a great living selling more affordable policies to young folks that need them, and building that relationship for life. Sounds rewarding!

Caught up in their day-to-day, people lose sight of how major life-changing events could result in a need for the death benefit that life insurance can provide. Here are a few things you should keep an eye on in your clients’ lives, or clients’ children’s lives, to discuss life insurance opportunities:
  • Marriage
  • Birth of a child
  • New job – A significant increase in income could require additional death benefit to cover loss of income
  • New home or other large purchase
  • Adopting a healthier lifestyle, which could mean lower life insurance rates
  • Starting a small business, especially if a business partner is involved
  • Turning 40 – Possibly time to evaluate different types of policies considering it is possible from here on that rates increase and health can deteriorate. Now may be a good time to look into longer term coverage options.
  • Retirement – Legacy planning or policies for grandchildren
Keep in mind, these are just a guide. Not all of these events may trigger a need for life insurance, but if they do, these can be the right times to bring it up. Many younger people do not think about this topic and may be less likely to talk about life insurance. We may have to remind them that this is not about them, but a purchase that is made for their loved ones. Some may not like an insurance premium of any kind, but everyone likes peace of mind. That is where you come in. Be the one to help them provide protection for their loved ones during their darkest of times. Being an insurance agent can be a respected, fulfilling profession when you know where it fits in your clients’ lives and where it doesn’t. If you have any questions on opportunities or sales pieces to start the conversation, call Ann Arbor Annuity Exchange today! 800.321.3924

Ann Arbor Annuity Exchange
Ph: 800.321.3924

Designed for Financial Professionals.