With the pandemic spurring new ways of thinking within people worldwide, especially regarding their health, it isn’t surprising that there has been an increased interest in life insurance policies.
Chances are, clients have been asking you questions about life insurance plans in the last three months, with questions likely surrounding which life insurance plan is best for them or whether or not they even need life insurance. That begs the question: who is– and who should be–a candidate for life insurance?
As you’re well aware, there are appropriate times for clients to invest in life insurance, and there are times when they don’t necessarily need it.
Questions you can ask clients inquiring about life insurance are:
- Do you have children or other dependents?
- Are you married?
- Does your spouse rely on your income?
- Are you and your partner both working?
Those with dependents, whether they are a spouse or children, are the best candidates for life insurance. Age certainly plays a role in life insurance, but anyone with dependents should consider a life insurance policy, regardless of their age. If anyone would experience financial inhibitions from the loss of your client’s income, life insurance is a necessity.
Other things to consider are the non-monetary repercussions that come from losing a household provider. We know that losing the top earner in the household would be devastating, but what about the stay-at-home parent who dedicates the working hours to cooking, cleaning and raising the kids? Their loss of contributions may not be monetarily calculated, but think about the money a parent would have to spend on daycare and the time they’d need to dedicate to cooking and cleaning to maintain the house if their partner was no longer able to perform those tasks. The value of contributions to the household are oftentimes undervalued or simply determined from a monetary standpoint, and they shouldn’t be. With the hefty contributions given within the home from a stay-at-home parent, that individual is equally as qualified to receive life insurance as the top earner.
According to ThinkAdvisor, there are technologies and platforms available to clients today that can help them calculate the actual cost of a stay-at-home parent’s contributions to the household and use that figure to land on accurate coverage amounts for life insurance. The process is built to be quick and efficient so there is little wait time for families looking to get started right away with their plan while adhering to social distancing guidelines that remain in place today. The online tools make it quick and easy for families to find the coverage they seek, and reduces the wait time that normally come with in-person interactions.
Other factors that may come into play for those seeking life insurance include:
- Marriage status
- Socioeconomic standing
With all the uncertainties in the world, clients are smart to be thinking long-term about their health and the financial security of their families. Life insurance policies for any contributors within a household will ensure the financial stability of any dependents, ensuring they will be well taken care of even in the event of a tragedy.