Tuesday, July 13, 2021

Consider a Permanent Solution

While term insurance is extremely popular and economical, it is only temporary. Nevertheless, no one can truly predict what the future holds and everyone's financial story is different; term insurance alone might not be the best solution. There are good reasons to consider a permanent type of life insurance - including the potential for lifetime coverage. 

Your clients and prospects are the youngest and healthiest they will ever be today, and leveraging that now can pay off later. Help your clients keep their financial independence. Don't put them in the difficult situation of still needing life insurance coverage after the level term (or conversion) period expires and not being young enough or healthy enough to afford it. 

Let's use the example of Principal Financial's latest announcement to exit the individual life insurance market by end of Q3 this year... Most term policies have a guarantee of conversion, but there is no guarantee of what permanent products will be available to convert to. As carrier's pull out of the market, the permanent product availability becomes narrowed and potentially expensive. 

Help your clients understand the important features of a permanent life insurance policy. While permanent life insurance may be more expensive compared to term life insurance, keep their best interest on point. Discuss their options to determine the best balance of life insurance coverage for their unique situation.

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Wednesday, June 2, 2021

Annuities Can Be Powerful Solutions for Clients

Our industry is promoting National Annuity Awareness Month this June, consequently it is the perfect time to educate your clients on the benefits of annuities and the guaranteed lifetime income they can provide.  As the pandemic begins to subside, Americans will likely shift their focus from short-term survival to longevity, making the protection offered by annuities more important than ever.

Longevity includes retirement planning. Only 27% of working Americans feel confident in having enough money to live comfortably throughout their retirement. Also, a whopping 41% of workers in America have saved less than $50,000 for retirement. This is a huge opportunity!

Thanks to the SECURE Act legislation passed in December, 2019, which removed barriers in retirement planning, annuities are riding a wave of positivity. A traditional fixed income investment like money markets and CD's have declined sharply over the years, making it difficult for clients who are looking for profit to generate dependable income to maintain their lifestyles in retirement.

A well-balanced retirement portfolio may include a combination of conservative, moderate and aggressive investments. Stocks and bonds offer strong return opportunities, but they lack income and protection guarantees plus are subject to higher risks than traditional fixed income investments.

To help your clients achieve their retirement goals, it’s important to build a strong savings foundation that can help overcome low interest rates and increasing market volatility. Annuities can add certainty to your clients’ retirement savings groundwork.

Assist your clients in overcoming potential retirement planning challenges. Offer them more growth and protection to accumulate more assets for retirement by offering annuities. Start the conversation today with help from these resources

Tuesday, May 4, 2021

DIAM: If You Are Not Offering, You Should

It doesn't matter what your primary insurance sales consist of, your clients depend on their income to pay their bills (which includes premium payments) and maintain a lifestyle. Help them keep their financial life in balance with disability income insurance. If helping your clients isn't enough incentive, advisors who offer disability insurance to their existing clients earn 30% more income than advisors who do not.

May is Disability Insurance Awareness Month (DIAM), and it's the perfect reminder that disability insurance is often an overlooked part of your clients’ financial plan. If you are not currently offering it, you should be. Not only for the reason that it will increase your income, but also because most working Americans couldn’t last a month without their paycheck; maybe six months if they have savings socked away. Nevertheless, the average length of a disability is 34.6 months, any savings they have isn't going to last long. Which is probably why medical issues are the number one reason cited for bankruptcy filings in the US as 90% of disabilities are due to illness not accidents.

If the pandemic has taught us anything, it’s that our income is extremely important. We pay for insurance to cover many things: Our cars, pets, cell phones, vacations…So why are we reluctant to insure our most important asset that pays those premiums? 

As 67% of them do not even have long-term disability insurance through work, ask your clients what they would do if they lost their income because of an illness or injury. Get this DI Starter Kit to help begin the conversation.