Tax advisor Ed Slott said it best, “life insurance should be a bedrock of any serious financial, retirement or estate plan, but it is not used nearly enough.”
At Tennessee Brokerage Agency, we know the importance of your clients having life insurance. It’s a small expense in the long run, securing a sound financial future for their family or business after they are gone. However, there are plenty of misconceptions about life insurance, and sadly many people don’t realize the importance of it until after they have experienced the loss of a loved one that lacked financial security.
We’ve taken three of the most common arguments for not having life insurance, and eradicated them:
- I already have savings in an IRA/401(k). Most of your potential clients have already put much of their savings into IRAs and 401(k)s, but they are hurting themselves more than helping with these tax-deferred assets. With life insurance you can replace these lack luster financial assets with tax-free savings for your clients.
- Life insurance costs too much. Statistically, people perceive life insurance to cost three times more than it actually does. When you position it as an investment instead of an expense, it changes that conversation. By transferring your client’s funds from current savings assets into a permanent life policy, you are creating a better long-term financial asset for their future that will likely cost them less in the short and long-term.
- I need control over my money. The most important thing that Slott wants advisors to remember is, “life insurance creates more long-term wealth than any other investment.” Ultimately, we want to help our clients have better and more financially secure futures, or in the event that they are unable to do that, ensure their family is protected. When they invest in a life policy, that provides a guaranteed result, the financial leverage it provides them creates they long-term wealth they are looking to acquire.
There are plenty of other arguments for not having life insurance, but we hope that the rebuttals provided above will help you to bust some of the myths surrounding life insurance. As well as, help someone obtain valuable coverage that provides protection for them and their family, and a more financially secure future.