Selling life insurance in today’s competitive marketplace can be difficult, and finding an approach that appeals to people even more so. Most people have a general understanding of why they need life insurance, but because budgets are tight, many find that they seek out the lowest cost options with the least amount of personal risk, or skip it altogether until they feel like they feel ready.
Life insurance can sometimes be a hard sell, especially more expensive options like whole life and universal. But one thing that many people, especially millennials, are lacking is a retirement savings. That is why an approach that may help sell life insurance is one that focuses not only on death, but on life, and how life insurance can be used to save for and support retirement.
Everyone Loves a Deal – a Policy that Addresses Two Needs
There are very few easy to understand options for retirement, especially among gig workers and those without a strong retirement plan. Not everyone has a state pension or a silicon valley managed 401K, nor do people feel equipped to purchase their own IRAs. That is why many people put off saving for retirement.
Using life insurance as a retirement vehicle thus offers a solution that is easier to understand: a policy that can be used to build wealth and borrowed against later. It requires less mental energy on the part of the policyholder, and ensures that the individual also has the life insurance coverage they need.
Someone that is in their early 30s may, for example, be able to get a limited pay whole life insurance policy for a cost that they can afford. They may be attracted to the idea that:
- They only have to pay for the policy over a set period.
- The policy accumulates value over time.
- The policy can be used as part of a retirement plan.
- The policy provides a death benefit for their children that will never end.
Other plans, like indexed life, also offer benefits that many can understand (such as the policy moves with the stock market) while also allowing them to have someone else manage their money so that they do not have to worry about understanding the markets or managing their risk. Everyone needs life insurance. Everyone needs retirement. Many people have neither. Framing life insurance as a vehicle that offers both (as part of a broader retirement strategy) can be a strong selling point, and it’s those selling points that will help you stand out in this increasingly competitive market.