Have your clients and prospects fully protected their families? Let them know life insurance should be part of their financial planning.
September is Life Insurance Awareness Month — a great time to remind your clients that too many people leave loved ones at risk for financial uncertainty. Don’t let them be among the 1 in 3 households who would have immediate trouble paying living expenses if the primary wage earner died. In fact, LIMRA estimates that 48 percent of households have an average life insurance coverage gap of $200,000, which represents a total market need of $12 trillion.
Don’t write off millennials, who at 83.1 million and counting are the nation’s largest generation. Since they came of age during the Great Recession, millennials are concerned about protecting their financial well-being as they begin to marry, buy homes, and have children.
Emphasize that while workplace benefits can make a great start towards a comprehensive financial plan, individuals should review their coverage needs closely. Here’s why:
Life insurance can help replace income. With so many families depending on two incomes, protecting against the loss of one breadwinner helps make it possible to maintain a standard of living. Industry experts generally recommend individuals have enough life insurance to replace seven years of income.
It can help cover funeral and burial costs. The average funeral can cost between $7,000 and $10,000. With life insurance, families won’t have to pay these expenses out of their own pocket.
It can help pay off outstanding debts. The average American household carries $137,063 in debt (mortgages, credit cards, auto loans, medical bills, student loans), according to the Federal Reserve. Without life insurance coverage, these payments could quickly drain an estate if the primary wage earner died.
It can help protect education expenses. For the 2017-2018 school year, the average tuition at a four-year private college was $34,740. If an individual is planning to pay tuition and other educational expenses for his or her child or other dependent, life insurance can help protect these costs in the event that the primary insured were to pass away.
It can help provide an additional cushion to retirement savings. With lifespans increasing, retirement may last 20 years or more. According to Fidelity Investments, a good rule of thumb is to have 10 times your final salary in savings. Life insurance can provide additional protection in the event that retirement savings aren’t enough to help family members when their loved one passes away.
USAble Life offers products designed to fit the financial needs of individuals and their families. Moreover, if they purchase both medical and ancillary products, they will have coverage that protects both their health and financial well-being.
Arkansas Blue Cross and Blue Shield is an Independent Licensee of the Blue Cross and Blue Shield Association and is licensed to offer health plans in all 75 counties of Arkansas.
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