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Life Health > Running Your Business > Selling

Fine Wine and Life Insurance

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What You Need to Know

  • Reputation matters.
  • Timing matters.
  • Expert advice can help.

Wine and insurance? Similar? You must be kidding me!

Although one is a liquid and the other is a product, there are several areas where they cross over. Knowing about them might provide an “Aha” moment for your prospect or client.

Let’s make a few assumptions about fine wine.

We are talking about the fines wines in the world.

This means red Bordeaux wines like Chateau Lafite Rothschild. Fine ports and champagnes. Lets not forget red Burgundies from France.

These are the wines that are produced in small quantities, then encounter worldwide demand. When properly stored, certain ones can live almost forever.

1. Reputation matters.

Plenty of wine is made to be consumed the day it was purchased. You find these on the supermarket or wine store shelves. They aren’t kept under lock and key. These brands advertise a lot.

Fine wines: Their reputation precedes them. They don’t do any advertising because the small supply is unable to meet overall demand.

Life insurance. The reputation and quality of the firm matters. You are buying something that won’t pay off in your lifetime. You want the company’s safety rating and reputation to be perfect.

2. It gets better over time.

Food comes with a sell-by date. You’ve discovered foods you’ve forgotten in the back of your refrigerator. You hesitate to touch them.

Fine wine: It’s made to improve over time. It’s a living liquid trapped in a bottle. It evolves. The tannins soften and the fruit becomes prominent.

Life insurance. Whole life insurance builds cash value over time. That point’s obvious.

3. It costs more the longer you wait.

You’ve probably discovered this yourself when you put off repairing your house or buying a piece of diamond jewelry.

Fine wine: 1982 was a great year for Red Bordeaux wines. The bottle that cost $60 upon release will probably cost you about $1,000 now.

Life insurance. This one’s obvious, too. The $500,000 policy purchased at age 25 will have lower premiums than the $ 500,000 policy purchased at age 55.

4. You might not be able to get it later.

You know all about scarcity. When something is gone, it’s all gone.

Fine wine. Chateau Petrus is a famous Red Bordeaux from the Pomerol region. They produce 30,000 bottles a year on average. That’s 2,500 cases. Decades later there’s none left, except in private collections.

Life insurance. You reach an age when you become uninsurable. It might be due to age of a medical condition.

5. Benefits can last a long time.

Wouldn’t it be great to own something that can still be enjoyed in a year? 10 years? 25 years?

Fine wine: Vintage port from Portugal is called fortified wine because of the small amount of liqueur added during production. It’s very long lived. The 1970’s are drinking nicely now.

Life insurance: Many clients convert their life insurance policies into annuities when they need income. These payments can continue for the rest of your life.

6. It provides a good feeling.

Don’t you love the feeling you get after enjoying a good meal or opening your brokerage statement after a month when the stock market went up?

Fine wine: It has a taste and variety of flavors that’s hard to describe. All you know is you like it and you have more bottles of the same stashed away.

Life insurance. Peace of mind has been a traditional value that life insurances gives the client.

7. Something your heirs will appreciate.

We all want to leave a legacy. Sometimes we leave more than one.

Fine wine: It’s unlikely you will drink all those bottles before you die. Your heirs will enjoy them.

Life insurance. Your beneficiaries enjoy the death benefit on your policy.

8. You need expert advice.

Cars are filled with computer chips now. If something went wrong, you wouldn’t attempt to fix it yourself. You would bring the car to the dealership.

Fine wine: Your wine store might have 55 different chardonnays, but the really rare White Burgundies are kept under lock and key. They are on allocation, meaning your wine store might only get a few bottles. They call and offer you one or two.

Life insurance. It’s a complicated product. Imagine if you bought a policy, paid premiums for years and suddenly the terms of coverage were changed! A good insurance agent knows what you want and helps you find the right product.

Wine and life insurance might seem as different as apples and oranges. There are similarities.

(Photo: Shutterstock)


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