This article was written by our sales agent Natale Scopelliti as an Agent Advisor article. Expect to see more of these in the future.
Why do you have life insurance? Seems like a simple question, doesn’t it? When we ask clients this question, this is the answer we almost always get.
“I have life insurance so I know my family will be taken care of after I’m gone.”
That’s a great answer; it’s one I can’t argue with. There’s almost always a financial void left behind when someone passes away.
As Benjamin Franklin said, “In this world nothing can be said to be certain, except death and taxes.” Again, a statement I can’t argue with.
But what I can argue with is the assumption that life insurance can only be put to use after a life has expired.
Yes, having a life insurance policy will leave your family in a better financial situation should you depart from this world. But what I like to point out to my clients is that life insurance can also be put to good use while an insured is still here.
In fact, the earlier a person secures life insurance, the more options they have to make use of it. This is why I always suggest giving life insurance as a gift. Let me explain.
What was the last gift you gave your child, niece, nephew, or grandchild? The latest smartphone? A pair of tickets to a concert? Or maybe a gift card to their favorite store?
We all want the best for the young people in our lives. And while we feel great in the moment giving gifts we know they love, doesn’t it make more sense to give gifts we know they need?
Put simply, everyone needs life insurance. When it comes to providing coverage as a gift, I always recommend whole life insurance.
In case you’re not familiar with whole life insurance, it possesses the following advantages over term life insurance.
- Whole life insurance policies accrue cash value over time.
- A whole life insurance policy doesn’t expire.
- Insured individuals can add on protection as needed.
These advantages provide unmeasurable opportunity for the insured. We always make sure clients understand that these policies accrue cash value over time. This money can eventually be put to use by the insured. They can use it to pay their college tuition, travel, buy a home, start a business, or fund their dream wedding. The money can also be saved and used as an emergency fund should they find themselves in an unexpected financial situation.
Another benefit is that premiums are locked in and coverage can never be canceled by their provider due to a change in the insured’s health. Even if medical conditions develop that would otherwise make securing new life insurance nearly impossible, coverage will always remain had the policy been obtained prior to the diagnosis. With most policies, additional coverage can be added to meet life demands. For example, starting a family would deem more coverage.
Life insurance might not be the right gift for everyone. But when given to the right people, they’re provided with the opportunity to secure financial freedom and enjoy peace of mind knowing they’ll never leave their loved ones in financial need after their departing.
I talk about insurance all day. I know most people can’t say that but, because of my love for this industry, I’m able to look past the face value of life insurance. I know most see life insurance as a necessary evil. But we love showing families how such a policy can open doors for their younger family members. It’s all about perspective.
A colleague of mine, Cory Clair, President & Founder of C Wealth Solutions, refers to whole life insurance as The Gift of a Lifetime.
Cory told me, “Many of our clients strive to set an example of financial responsibility for their children and grandchildren. They want to help them achieve their dreams and realize their financial goals. By giving them a head start towards those goals by providing fundamental guarantees offered with whole life insurance, they truly are giving them The Gift of a Lifetime.”
That’s another statement I can’t argue with. While most gifts begin to lose monetary value before the wrapping paper hits the floor, life insurance policies are always valuable. In fact, they only grow in value.
Gratification is delayed when you gift a young person with life insurance. A child won’t jump up and down with delight when you present them with a policy. But one day, they will realize the undeniable value, support, and head start in life you gave them.
Is there a young person in your life who would benefit from The Gift of a Lifetime?
I would love to hear your take on life insurance as a gift. Let’s continue the discussion. Remember, we can always do more to set the young people in our lives up for success.