The Life Cycle…

Whenever you talk about life insurance to your customer, use a Bell Curve illustration to aid them to visually comprehend the concept of the life cycle and how it relates for the changing need for life insurance. The necessity for insurance as well as the benefit amounts should increase or decrease - like the shape of a Bell Curve - as your customer’s earning potential and responsibilities increase or decrease. This provides Agents a chance to sell additional products to existing customers throughout their lives.



People procure life insurance for two main reasons:

• To cover final expenses so their family isn’t burdened at the time of death

• To replace lost income during the event of an unexpected death



But those are not really the only reasons to buy life insurance. Others are:

• To pay off the mortgage so a family won’t lose their home as a result of the loss of a breadwinner’s income

• To finance a kid's education if the family loses the breadwinner’s income



Regardless of why they buy it, the result is the same - life insurance pays a certain benefit amount upon the policyholder’s death. When he purchases the policy, the client can choose the benefit amount that’s right for his family based on his individual needs and circumstances, in other words, where he's in the life cycle.



There are 2 main types of life insurance - whole life and term life. Whole life provides coverage for his entire life and builds cash and loan value as he pays his premiums. Premiums never increase, but whole life is generally costlier because coverage lasts a lifetime. It provides the most effective overall protection for his family, however, and covers final expenses.



Term life provides coverage only for a limited period of time. After that period, the policyholder generally pays increased premiums to keep the coverage. Term life, however, is generally less expensive than whole life and is acceptable for all those with limited financial resources or who want the coverage only for a limited time period.



From the day your prospect was born he developed a need for final expense coverage. But, life insurance isn’t something he consciously thought of for the following few decades while growing up. When he became an adult, however, that likely changed as he hit new milestones during the life cycle. Is he married? Does he have children? Does he own a home? Does he have someone depending on him for income? If he answers, "yes," to any of these questions, the need for life insurance rises dramatically. After all, life can change in a heartbeat! Your customer needs to be prepared!



Will his death as well as the loss of his income negatively impact those that rely on him financially? You bet it would! Having appropriate life coverage in place can help to look after his family financially. Adding a term policy to a whole life policy may also help if ever the policyholder dies during peak earning years when he is accumulating assets and debts.



As your customer nears retirement, the need for term insurance dwindles. By that point, he likely has accumulated enough money to retire on and his children are no longer financially dependent on him. From retirement on to the end of life, your customer generally will not need term coverage if he has an appropriate whole life product in place that can help pay final expenses.



What matters most is that your customers purchase life insurance - regardless of where they are within the life cycle! But, by educating customers on their changing needs, you can present additional products throughout their lifetime.







For further information after that to spot several additional career possibilities in your region visit Liberty National Life Insurance Company.