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Life Health > Life Insurance

The power of life insurance as a financial tool

By Raymond W. Johns

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There is no greater need in society today than for every family to have life insurance. Life insurance is that little love letter from the deceased that says, “I love you enough to make sure you are OK financially after I am gone.” It is especially needed now, when we have serious economic issues facing America. Taxes are going up, income is stagnant and retirement benefits are dropping like a rock. Our parents had defined benefit plans to subsidize retirement along with Social Security. In our generation, we have been made personally responsible for our own retirement plans in the form of 401(k)s, IRAs and other retirement vehicles.  Additionally, we are told that Social Security might not be there for many of us.

Because of all of this economic strife, life insurance becomes a 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 feel an acute responsibility to spread the word to all of the families who do not have it so that they too clearly understand how important it is for their financial peace of mind.

But here’s the catch: The greatest obstacle on our path toward helping people understand the value of life insurance is us. We need to be bold in presenting to our clients the critical importance of our products and services. There is so much misinformation out there. It is our job to educate and or re-educate the public on the benefits of life insurance.

See also: 14 reasons why life insurance is the best

Permanent life insurance has value in every season of an insured’s life, from the early years when they want protection for loved ones to mid-life when they can use it for those little financial emergencies that happen to every family. In retirement, it can not only provide a safety net for financial emergencies, but an additional income stream to subsidize other retirement income. And, it can be a tax free inheritance to the kids or other loved ones upon the death of the insured.  Most importantly, life insurance can provide financial safety for a surviving spouse.

Only when we know every aspect of how life insurance works can we properly educate our clients. With that knowledge, we help our clients see the true value of what we provide, which is financial protection and peace of mind. Moreover, permanent life insurance always provides a benefit for the client’s premium dollars when they are alive and when they pass away.  You cannot say the same thing about health insurance, homeowner insurance or car insurance. With these products, you can pay premiums for decades and never see a benefit. In all of the years I have been providing life insurance for my clients, I have never had a widow or widower wish they had less life insurance. They always wish they had more. That should teach all of us that we need to do a better job educating our clients on the power and benefits of life insurance.

 Click here for more content from LifeHealthPro’s 2013 Life Insurance Study.

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