Now Is The Time to Promote Life Insurance

By Brad Gordon

President, MAF Companies

September is “Life Insurance Awareness” month. What is our role as advisors? Keep on reminding our clients of their financial responsibilities! Now is the time to take applications!

Using Ben Franklin’s rule of making choices by listing reasons for and against side by side, here is my quick and dirty snapshot why people with financial responsibilities should purchase protection now rather than wait. Most everyone reading this knows these reasons so consider this just a reminder of what we must communicate to the public:

  1. Nobody knows when they will die. It can happen later, today!
  2. Nothing beats life insurance for immediately creating a tax-free estate when the ownership and beneficiary designations are set up properly.
  3. Buy today. Your insurability can change if you wait too long.
  4. Buy before the market takes another 1,000 point tumble as it did recently. Don’t forget the magic of indexed life’s “ratchet effect” which can lock in previously earned gains.
  5. Conversely, the market could rise substantially in the near future. Wouldn’t your clients want to ride that wave?
  6. A Roth IRA and a life insurance policy properly structured are the only financial tools available for tax-free build up as well as tax free distribution anytime the family wants. No age 70 ½ minimum distribution rules.
  7. Life Insurance is actually better than the Roth because not everyone is eligible for a Roth and there are maximum contribution rules with a Roth that you don’t find with Life Insurance.
  8. Your life insurance policy can offer benefits prior to death such as chronic illness. We are seeing more and more “hybrid” sales where we use Life Insurance with riders to eliminate the need to purchase a separate long term care policy.

Many of you can add more reasons for making a sensible buying decision. Now, on the other side of Ben Franklin’s decision chart, what are the valid reasons for not purchasing? There is only one good reason regarding the pain of paying a premium. Ask an expert when the best time to buy a life insurance policy and they will tell you that you should buy right before you die. Of course, the answer to this is in points #1 and 3, above. As advisors, we have to change the mindset about premiums that our buyers have into a wise choice of leveraging money as you see in points #2, 4 and 5, above.

I believe the real reason people are not buying has to do with lack of confidence. Purchasers are not compelled unless they really trust their advisor and I see so many advisors who hesitate in making recommendations due to fear of a possible rejection. Perhaps there is a concern of being seen as a “pushy salesman.”   Of course, anyone with conviction will be seen by some as “pushy” from time- to- time and, of course, our advice will be ignored or rejected. This goes with the territory of being an advisor. Instead of being fearful of potential negative results, think of how baseball players see a lifetime .300 hitter. They are only successful 30% of the time yet will probably be in the Hall of Fame! Getting up to bat enough times to make a difference is what really matters.

I ask all those reading this to now go into serious mode regarding our chosen profession and take some chances. Talk to those prospects! Get some at-bats and make a difference in people’s lives.

You will be reminded of how fulfilling a profession we all enjoy.





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