Using Life Insurance for Multiple Client Needs

If your clients have multiple coverage needs, then it is likely that they own a number of different insurance policies, such as life, long-term care, disability, auto, and home owners. It is also likely that they are paying numerous premiums in order to fund this array of coverage.

But there are some instances where more than one need can be insured under just one insurance policy. One example is life insurance and long-term care. In fact, over the past several years, a number of financial vehicles have come into the market place that can help with providing protection for the high cost of care – either at home or in a facility – as well as providing a death benefit for the insured’s beneficiaries so that his or her survivors don’t have to face financial hardship.


Covering Two Needs with Just One Plan

With a combination life and long-term care policy, it is possible to obtain two forms of protection – and there are a couple of ways that these plans may be structured. For instance, a policy holder can purchase a single premium policy where one single lump sum is contributed.

In this case, the insured can receive a specified amount of long-term care coverage if it is needed, and / or have their beneficiary receive death benefit proceeds if the long-term care coverage is not used. This can usually be set up as a universal life, whole life, or even as a variable universal life plan.

In going this route, the long-term care benefit is typically a percentage of the lump sum amount of dollars in the policy. For instance, if there is $200,000 in the policy and the long-term care benefit is 2%, then the policy holder will receive $4,000 per month in long-term care coverage. And, in many cases, if the policy holder uses only a portion of the long-term care benefits and then passes away, his or her beneficiaries will still receive a reduced death benefit amount from the policy.

There is another way to combine life insurance coverage and money that is needed for long-term care, too. This is by adding a rider to a permanent life insurance policy. In this scenario, the insured can access the policy’s death benefit funds – up to a certain amount – in order to pay for long-term care services. And, when the insured passes away, the named beneficiary would receive the remainder of the funds – if any – from the policy’s death benefit.

It is important to note that, if clients are considering either of these combination life insurance / long-term care options, they will typically need to go through full underwriting, which may also include the need for a medical exam.


Finding Qualified – and Interested – Prospects

While there are a number of “customizable” insurance coverage options that are available today, it is still necessary to find prospects who are ready, willing, and able to hear from you and move forward with a purchase.

If you want to start generating a predictable and consistent flow of leads for your insurance business – and in turn, generate thousands of additional dollars in commission each month – we can help.

To learn more about how you can focus less on cold calling and more on talking with prospects who want to hear from you, then give us a call today at 1-800-643-6143.

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Brian J. Kay, Executive Director, Leads4Insurance
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