By Yolie Aleman-Rodriguez February 15, 2019
More often than not
clients and policyholders will let me know during our initial meeting that they
already have their life insurance needs covered through work.
They feel confident
and secure that they have checked the correct box of life insurance during
their initial human resources meeting.
An essential
practice of our discovery process is reviewing any and all insurance our
clients possess, which opens up the conversation about the importance of owning
permanent insurance outside of work instead of only owning term insurance
through an employer.
The average
American will hold at least eight jobs during their lifetime and the term life
insurance benefit provided will most likely also terminate when the decision to
part ways is made. Because of this, it is important to separate the employment
insurance from personal insurance. It makes sense to view an employer life
insurance benefit as a bonus gift, not the main source of protection for
beneficiaries.
Some of the key
benefits of owning a Whole Life insurance policy early in life is that premiums
will always remain the same - even as clients move into their golden years. The
younger and healthier a person is, the better locked and permanent rate they’ll
receive.
Guaranteed
For Life
Equally as
important, the death benefit is guaranteed for life. This type of policy also
provides its owner the flexibility to access the accumulated cash values at a
tax-free rate. It’s an excellent feature to count on when unforeseen expenses
or emergencies threaten our financial stability.
In essence, one can
borrow money from their own policy with an option to pay back at a low interest
rate. The dividends, which are considered “living benefits” for the owner, are
an added advantage.
The Term Life
policy is just that – a promise to provide benefits to your beneficiaries upon
death if it occurs during the contract’s time frame. None of the other added
benefits discussed above are included within the Term Policy.
Most of our retired
clients express frustration when they confide that they were paying on a term
life insurance (contracted term) policy for many years and terminated that
policy due to the unaffordable renewal rates.
Others find
themselves in their late 60s without their employer life insurance benefits.
It’s costly to secure a permanent life insurance policy during the golden
years, especially when health issues are involved, as we are closer to the end
of the life insurance mortality tables.
One of the best and
most important questions to ask your clients when deciding upon life insurance
is, “Do you want protection for your family for as long as you live, or for as
long as they live?”
If the answer is to
protect both, then Whole Life insurance or a combination of the two will be
their answer.
Yolie
Aleman-Rodriguez has been with State Farm for 26 years. She is a qualifying
MDRT member and currently leads as MDRT Client Acquisition Chair. In 2006,
Yolie co-founded and became president of the National Hispanic Agents Network
(NHAN) at State Farm Insurance, which now consists of over 500+ members
nationally.
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