When it comes to permanent life insurance, clients can have access to an array of features and benefits that extend beyond the traditional death benefit protection of life insurance. But the complexity of such a policy, combined with the positioning that seemingly puts it at odds with the goals of life insurance in the first place, can make it difficult to communicate to clients.
Once you know the proper language and can speak to clients about permanent life insurance as protection and more – something that can, first and foremost, protect their family, and then protect against living expenses and emergencies – the concept becomes simpler and more attractive to policyholders. And once that understanding is reached, you can begin driving home the principles of permanent life insurance. Previously, we’ve covered the idea of positioning permanent life as a product that allows clients and their families to “live more.” Here, we discuss the final two principles in discussing permanent life: keep more and build more.
This is all about how a permanent life insurance policy can help clients keep more of their money at the end of the day.
So how should you talk about keeping more money? Try something like this:
“Like 401(k)s or IRAs, permanent life helps you keep more of your money by minimizing your taxes Unlike 401(k)s or IRAs, it has no contribution limitations, and no income taxes on any money passed along.”
(Please note, a 401(k) reduces taxable income, a benefit which is not offered when purchasing permanent life insurance.)
Remember that the potential clients with whom you are speaking don’t know much about permanent life, so examples of how they can keep more and comparisons with more-familiar products go a long way.
The language you use to talk about “keeping more” is critically important. Let’s dig into some of the details, based on known consumer pain points:
Like/unlike: Comparisons with similar products help them appreciate the benefits and understand how permanent life insurance can fit into their larger financial picture.
Minimize how much you pay in taxes: Everyone likes fewer taxes.
No contribution limits: Enhanced access made this a valuable feature.
No income taxes: Explicit reassurance helps.