The subject of death isn’t exactly dinner-table conversation. In fact, it can feel uncomfortable just thinking about — let alone talking about — this topic. However, preparing for death is one of the most important acts you can do for your family. After all, the loss of a loved one is hard enough without the added stress of funeral costs and bills looming overhead.
The reality is most Americans need supplemental life insurance, and those who already have a policy may need to update their coverage. That is why every September, the nonprofit organization Life Happens coordinates Life Insurance Awareness Month — aimed at educating Americans about the importance of life insurance and how to get the coverage they need.
Brokers and agents can use the occasion to check in with clients on their life coverage offerings and discuss how they can help employees find the policy that works best for them. Here are a few ways to talk about the product with customers.
1. Life coverage matters for everyone, at every stage of life.
While different types of life coverage are on the market, they all ultimately serve one purpose: help provide financial security after one’s death. A life policy can be used in a variety of ways, including helping cover funeral costs, bills and ongoing living expenses, paying off outstanding debt like credit cards and the mortgage, protecting a spouse’s retirement plans or covering a child’s college tuition.
The type of policy and amount an employee may purchase will depend on his or her life stage or recent life events. To help determine if they have the right coverage, consider chatting with customers about their personal circumstances and if things may have changed. Some life circumstances to keep in mind include marriage, parenthood, home ownership, career advancement or retirement. And the policy amount will be based on a customer’s existing financial resources as well as their immediate, ongoing and future financial obligations.
2. Life coverage plays an important role in a benefits package.
Employees from large and smaller U.S. businesses alike recognize the need for life coverage — 63%, to be exact, according to the 2019 Insurance Barometer Study, from Life Happens and LIMRA.