How COVID-19 is Influencing People’s Desire to Get Life Insurance

Published on May 29, 2020

The COVID-19 pandemic is an unprecedented time. In many states, extreme measures are being taken to prevent the spread of illness and promote personal protection. The contagion rate and mortality rate have concerned many people as numbers of infected people continue to climb. People with underlying health conditions and elderly are at a higher risk for complications.

Because of these concerning statistics, many are asking themselves if they are prepared for a worst-case scenario. Are their families protected financially if they were to die unexpectedly? It’s a difficult question, but one that needs to be asked — especially now.

Insurance agents can help educate their clients on the importance of buying life insurance.

Why should someone buy life insurance? 

Life insurance is the foundation of sound financial planning. The payouts or benefits from life insurance policies can help with the following situations:

  1. Income for surviving family – Do any family members rely on the prospective buyer’s income? Do they plan on providing a college fund for kids or grandkids? If so, having life insurance ensures loved ones will be provided for if something were to happen. 
  2. Final expenses – It’s no secret that funerals aren’t cheap. Between funeral home costs, a casket, and the burial, expenses can pile quickly. There are also unpaid debts to address, estate administration costs, and potentially unpaid medical bills.
  3. Create savings – Certain types of policies have a cash value savings component that can be borrowed on if needed by the insured. 
  4. Peace of mind – Nothing beats the peace of mind knowing that if the policyholder dies, they don’t have to stress about loved ones having to worry about money and debts. 

How to decide on the right type of life insurance

Term life insurance 

Term life insurance is purchased for a specific dollar amount across a defined term. For example, a 30-year policy worth $1 million would pay out a million dollars if the policyholder passed away within the term limit.

The monthly premiums for term life insurance are the same throughout the life of the policy. Generally, term life insurance is less expensive the younger and healthier the policyholder is.

There are certain “convertible” term policies that have an option to convert to permanent life insurance which might be a better option for some people. 

Permanent life insurance

Permanent life insurance is a good consideration for anyone looking for lifelong coverage. Another benefit to a permanent life insurance policy is the ability to accumulate savings that can grow tax-deferred. The policyholder can choose to borrow funds for various purposes if needed, even if their credit is bad.

Permanent life comes in different types of policies such as whole, universal, and variable. Insurance agents can give direction to their clients on the best policy to choose. 

Why sell life insurance? 

Insurance agents have the opportunity to sell and advise on a wide variety of products. There are several reasons selling life insurance is an excellent career move.

  1. Help people – First and foremost, having the expertise and knowledge to genuinely help people is a huge benefit of selling life insurance. Giving clients and their families the financial stability that comes with a life insurance policy is invaluable. 
  2. Compensation – Selling life insurance is a lucrative way to make money. Agents are typically paid a certain percentage of the first year premiums, and sometimes a recurring percentage for the remainder of the policy. 
  3. Autonomy – Because agents are experts on the variable forms of life insurance and their benefits, they have the freedom to consult their clients in the best way they see fit. 

Interested in becoming an insurance agent with American Senior Benefits? Not only will you be able to sell life insurance, but products like annuities, Medicare supplement plans, and more. We provide excellent training and resources so you’ll always be supported.

Contact us below for more information!

The post How COVID-19 is Influencing People’s Desire to Get Life Insurance appeared first on American Senior Benefits.

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