Life insurance is a product that wears many hats: final expense providor, secure investment vehicle, consistent income stream. It is also a product that can be hard to sell, due in large part to consumer misperceptions about cost and relevance. But there are consumers that are demanding this product, and for very specific reasons. Here, we examine five of the top benefits clients expect to receive from their life insurance policies.
1. Providing income for family in the event of death of the primary income earner.
In National Underwriter’s recent Life Insurance Study, we asked agents about the primary concerns and goals of their clients. An impressive 75 percent of respondents noted that their clients want life insurance for a very traditional reason: to provide for their family in case of death. This was an overwhelming lead over client concern No. 2, which came in at 40 percent. Raymond W. Johns, an insurance broker in Utah, notes that the peace of mind life insurance offers is something no other product can provide: “Life insurance is the key ingredient for the safety of every family. It is an integral part of any financial plan. We who understand the power of life insurance need to spread the word … so that [others] clearly understand how important it is for their financial peace of mind.”
2. Paying off debt.
When working with younger prospects, producers often hear this classic question: “I’m single with no dependents, so why would I need coverage?” The answer was cited by 40 percent of our respondents as top-of-mind for their clients: Life insurance protects your loved ones from paying off your debts. Which brings us to the No. 3 concern …