Life insurance agents might be looking for the right reasons why many of their prospects need coverage. While it might be hard for them to see, the fact remains that people are underinsured and many are unaware of just how life insurance can benefit them. Here are four reasons that can help a life insurance agent show consumers just how life insurance can benefit them.
Many stages in life require life insurance
There are times in life when coverage becomes critical. For example, life insurance agents should ask consumers the right questions and get them to reveal if they have undergone changes in their life that might encourage them to purchase life insurance.
If a prospect has recently gotten married, had children or bought a home, the likelihood that they need life insurance has increase, and many of them are unaware of that. Prospects need to be educated that coverage will be in place to help a spouse, family or other dependent with financial obligations.
Americans need education of benefits
According to a recent article from LifeHealthPro.com, advisers can benefit from simply educating potential clients, rather than just trying to sell to them. The source recently asked experts in the industry on their sales approach and just how to balance selling and educating.
"I use both my own materials - mostly compliance-approved - and companies' booklets and brochures," Michael Levine, financial strategist and special care planner, in Newport Beach, Calif., told LifeHealthPro.com. "Resources developed by the Million Dollar Round Table as well as insight from fellow associates have also had an impact on my approach. Depending on the situation, I try to address the prospect's specific concerns and discuss some common misconceptions about life insurance upfront."
To improve financial savvy
Americans who feel their financial literacy is lagging will improve their overall knowledge of money matters through purchasing life insurance. According to Genworth Financial's Psychology of Financial Planning survey, 97 percent of Americans said that financial education is important. However, when asked to grade their knowledge of savings, retirement, investing and retirement strategies, the largest percentage of respondents only gave themselves a "B" letter grade.
"Financial decisions, behaviors and actions are highly motivated by emotional and psychological factors," said Barbara Nusbaum, a New York-based psychologist and money coach. "If we can better understand our personal feelings about money, we will be more able to educate ourselves and, most important, better apply this knowledge to secure our own and our families' futures."
Life Insurance Awareness Month is a great time to purchase
As September is Life Insurance Awareness Month, consumers will increasing their knowledge of life insurance and agents will be pulling out all stops to show them how they can benefit from it.
"Many people who could benefit from life insurance don't have it, sometimes because shopping for insurance is intimidating or they believe it's unaffordable," said Don Civgin, president and chief executive officer of Allstate Financial. "As part of September's Life Insurance Awareness Month, Allstate agents and exclusive financial specialists are offering complimentary insurance check-ups to help you assess your current insurance coverage based on your long-term financial needs. This information can help you decide if you need life insurance, how much, what type and how it can fit into your budget."
Consumers likely need life insurance and don't even know it.
