Our industry has lost sight of what an amazing invention life insurance is. We would sell much more of it if we better understood and communicated its magnificent characteristics. I believe that life insurance is one of the greatest things humans have ever created. Here are some important reasons why:
Life insurance replaces economic value
Employed people are kind of like earning machines. If they work to retirement age, these people will collect all or most of their economic value. They will be able to share this value with the people they love and the people who depend on them. If, due to premature death, some portion of this value is lost, the economic damage is as real and as tangible as if a building had burned to the ground. We would have insurance on the building to replace the loss. Do your prospects and clients have insurance on themselves to replace their significant value as an earning machine? You won’t know unless you ask.
Life insurance is collateral
For many reasons, life insurance is the finest collateral available. It offers fixed dollar guarantees that permit the lender to safely loan up to 100 percent. The value can never decrease; it will always stay the same or increase. Finally, and many people have forgotten what a powerful benefit this is, life insurance provides guaranteed borrowing power. Even if a bank rejects your prospect or client for a loan, they could still borrow from their life insurance.
Life insurance is a magnificent gift
When a parent or grandparent buys and pays for a substantial cash value life insurance policy, they are giving a gift that can grow into a veritable fortune. It can provide a protective safety net as well as establish an amazing foundation of savings that will benefit a child or grandchild throughout his entire life. If we really love these people, we must help them to establish firm financial footings. My assistant Laurie says all the time: “Love is not just a feeling; it is an action.” We must help our prospects and clients take action.
Life insurance is property
There are only two sources of income: people at work or money at work. The people we love (those who depend on us for food, clothing and shelter) are dependent on people at work and money at work. If for some reason, the people at work are interrupted or terminated, it becomes crucial to have money at work. Life insurance is vital property because it reaches full value at the exact moment we need it to. It provides full value at death or full accumulated value at retirement.