How to Determine a Client’s Real Need for Life Insurance

When most people think of life insurance, they typically consider the needs that their loved ones will face regarding future income and debt payments. In many cases, these thoughts are faced by younger people – those who may have small children or many years left to pay on their mortgage.

However, there are still a number of other potential needs that are faced by the loved ones of those who are middle aged, or even retired. These financial needs can also be met by obtaining – or keeping – a good solid life insurance policy in force.


Final Expenses

One expense that is faced by most anyone, regardless of age or employment status, is that of a funeral and other related costs. Today, the average cost of a funeral is approximately $8,500. But this does not include the cost of any potential medical, hospice, or other end-of-life expenses that the individual may face. These costs could far exceed the $8,500 figure.


Retirement Income of a Spouse and / or Special Needs Loved One

Today, retirement income needs of those who are retired are very different than they were years ago. Now, it is not uncommon for retirees to have an adult child living at home and / or for them to be raising grandchildren.

In addition, with today’s higher cost of living, Social Security and shrinking pension income may not be enough for the spouse or other loved ones to survive – especially if they will lose an income stream from the decedent. Life insurance proceeds can provide a great way to supplement any lost income.


Debt Obligations

Many years ago, it was common for retirees to have their mortgage paid off and to only need an income stream to pay for the basic day to day expenses such as utilities and food. Now, however, it is not uncommon for those in retirement to still have house payments, car payments, and other debt obligations such as credit card balances.

The proceeds from a life insurance policy could be used to help the survivor to reduce or even eliminate these debts. In fact, anyone who carries debt in retirement should have a life insurance policy in place in order to ensure that their loved ones will not be faced with these financial burdens. Otherwise, family members may be forced to sell other assets – often at reduced amounts – in order to eliminate these expenses.


Business Interests

If clients are business owners, then life insurance coverage can be essential to helping them ensure that the company can carry on without them, or that it is properly transferred. In this case, a life insurance policy can help to provide funds to keep the business operating while a suitable replacement can be found.

In addition, life insurance proceeds can also be used in helping decedents to make things more equal for their beneficiaries. For instance, if a decedent has two children and wishes for one of those heirs to inherit his business, life insurance proceeds of an equal value may be given to the other child.


Charitable Contributions

Oftentimes, when someone donates to a charity, it is done so with direct contributions. However, by using the proceeds from a life insurance policy, the do-nee may be able to offer a much higher amount of contribution to that charity. There can also be certain tax advantages to contributing in this way, too.


Finding the Right Clients at the Right Time

In order to initiate any good solid life insurance strategy, you need prospects to talk to. We can help with that. If you’d like to ensure that you have a consistent and reliable stream of leads, just give us a call at 1-800-643-6143 and we’ll fill in the details.


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Brian J. Kay, Executive Director, Leads4Insurance
921 Port Washington Blvd., Suite # 3 Port Washington, NY 11050
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