In the midst of the COVID-19 pandemic, your clients are more financially vulnerable than ever. Some may have lost their jobs or had their hours reduced. Others may be dealing with added health care costs.
Now is a great time to be there for your clients. Let them know you are available to answer their questions and to help them navigate these frightening times. One way you can help clients sleep easier is by showing them how life insurance can protect them today and in the future.
Here are some interesting facts:
- 29% of Americans have less than $1,000 in savings (Source: FDIC).
- Mortgages account for 74% of household debt (Source: LIMRA, 2017) and 1/3 of a family’s expenditures (Source: Bureau of Labor Statistics, 2016), making it the biggest single line item in the family budget.
- About 30% of Americans have no life insurance at all. Of those who do, many only have group coverage through work, which is often inadequate. At the same time, 85% say most people need life insurance. And, almost half of households said they planned to shop for life insurance in the next 12 months (Source: LIMRA, 2018).
Together, these factors may leave your clients without the resources to continue mortgage payments should they experience the death or disability of a breadwinner.
Now is a great time to apply for life and disability insurance coverage with relaxed underwriting requirements.
Because of COVID-19 social distancing requirements, many insurers have relaxed their underwriting requirements. For life and disability insurance, this may result in simplified medical underwriting. For disability insurance, it may also mean easier financial underwriting.
This creates a nice window of opportunity to get coverage with less hassle.
Affordability is key.
While cost is one of the main reasons consumers don’t buy more life insurance, most consumers overestimate the price (LIMRA, 2019). This suggests that the objection can be overcome by presenting a quote. Showing a quote for 30-year term in the amount of the mortgage (or home price if you don’t know the mortgage amount) is a great conversation-starter.
So is versatility.
Clients should also be aware that many life insurance policies offer additional options and living benefits that offer additional protection like disability waivers of premium, ability to cover other family members and living benefits for terminal illness and chronic conditions. And, if they choose permanent coverage, cash value grows tax-deferred and can be withdrawn for emergencies, retirement income and other needs.
Life insurance can be used to help solve several financial challenges. Best of all, a term policy sale to protect a mortgage today can open the door to additional life insurance sales later – as clients’ income and protection needs increase.
Need life insurance carrier contracts? PTT Financial can help. Contact us to learn more.