I have never been more proud to be a registered representative and an insurance agent. During difficult financial times like these, the importance of insurance cannot and should not be underestimated.
Think about this: There would be no Olympics, World Series, Super Bowl or NBA Championship without insurance. There would be no extracurricular activities at the college, high school or grade school level without insurance. There would be no workplace. No business could withstand the massive liability exposure.
We forget, even those of us who sell insurance, that we facilitate the very lifeblood of society. Without it our economy could not prosper. Let me share with you a few examples I use when I am selling.
I ask business owners why they insure their business. I then ask, "Who do you insure your business with?" Insurance companies, they reply. I ask them why they don't self-insure? They answer: "It's not feasible." or "It's not practical." or "I wouldn't have enough money left to run my business."
"Do you have homeowner's insurance?" Yes. I ask, "With whom?" They say an insurance company.
"Do you have auto insurance?" Yes. I ask, "With whom?" They say an insurance company.
"Do you have health insurance for you and your family?" Yes. Again, I ask, "With whom?" And again they say an insurance company.
"Do you have life insurance?" They say yes. So I ask, "Why do you have it and who do you have it with?" They tell me they have coverage with an insurance company. I ask them again, "Why do you not self-insure?" They give many answers, such as, "The cost is too much." or "There is so much uncertainty to life."
The dangers
They know the dangers if something happened before they were ready financially. They could lose their business, their home, their car, their income, their health. They and their family could be harmed physically, emotionally and intellectually. They don't want to take that risk.
Meanwhile, the financial markets are in disarray; the federal funds rate is one-tenth of 1 percent. The stock market is volatile and uncertain with well over a decade of very little gain. Commodities are even riskier.
While this is going on, the largest retirement of people in the history of our country is proceeding. But most people do not have enough money to retire.
So here is the best question of all. If you insure your business, home, car, health care and life, wouldn't it make sense to insure your retirement?
Using the same methodology they use to insure everything else in your life, the insurance industry can provide guaranteed income that Americans cannot outlive. It is spectacular to be an insurance agent.
"There would be no Olympics, World Series, Super Bowl or NBA Championship without insurance."
Van Mueller, LUTCF, (www.vanmueller.com) is an insurance agent, professional writer and speaker and Senior Market Advisor's 2010 Advisor of the year. Responses and questions can be sent to feedback@seniormarketadvisor.com.
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