Selling the Value of Life Insurance to Millennials

Life Insurance for Millennials

As many companies can attest, marketing insurance to Millennials is no easy feat. This generation of young, self-sufficient adults is facing an economic situation unlike one seen by previous groups. With student debts mounting and job uncertainty, many Gen-Yers are resistant to saving and investing for the future. The challenge for insurance companies is in finding a way to reach this demographic in a marketing climate that is changing by the day. Selling life insurance to Millennials means understanding the tendencies of the demographic and adapting to their desire for more digital communication.

For Millennials, Life Can Wait

Millennials are waiting longer than previous generations to start their lives. This includes getting married, buying a home, having children and finding a career. Today, the median age for marriage is between 27-29, and the average age of childbearing has risen to over 26. As such, life insurance sales for Millennials has been struggling. Because so many in this age group are putting off major life changes until they’re older, fewer see the need for a life insurance policy. They don’t have dependents, few have mortgages, and many are in debt. When marketing insurance to Millennials, it’s important to understand that many do not have the same coverage needs as their parents did. Read More


How Investing in Life Insurance Can Save Your Family Money

Life InsuranceWhile most adults have pondered whether life insurance is right for them, few have taken the time to understand exactly how it can save them and their families money. There’s a wide variety of life insurance types on the market and each has its own unique benefits.

How Breadwinners’ Families Can Benefit

Anyone who is the breadwinner for his household should obtain life insurance right away. If he or she happens to perish, the family will be left without a source of income. The results could be devastating. They could lose the family house, automobile and much more. A life insurance policy will provide the decedent’s family with a steady source of income far into the future. This way, they’ll be able to gradually adjust to life without the breadwinner’s income.

Unique Situations

Those who are married without kids should consider life insurance simply because they typically pay for large items like a home or automobile together. When one perishes, the other will not be able to maintain the same quality of life with solely his or her own income.

Single parents desperately need life insurance. A single parent does it all for her child and if she’s not around, her child will have no means of support. Even singles without kids should obtain life insurance. They might have student loan debts that family members co-signed. Those relatives will likely be sued if they don’t pay the remaining balance of the student loan when their relative passes on. The life insurance policy could help offset some or all of such an expense. Read More


Coming to Terms: Essential Insurance Terms to Help You Understand Your Coverage

Insurance Terms

As an average insurance policyholder, it can be overwhelming to try and understand absolutely everything about your life, car, health, or home insurance—especially if you are new to insurance in general. This is why many policyholders merely nod their heads and take the insurance agent’s word for it instead of asking questions. If you are looking at an insurance policy’s paperwork or shopping around for quotes, you’ll probably be confused with some of the vocabulary because not every agency will take the time to explain these terms to you.

The insurance industry has its own unique jargon and few understand what all the terms actually mean. Read ahead for a little explanation of some confusing terms that agents tend to throw around, so that when it is discussed you can truly nod your head in agreement, or better yet—ask some questions.

Life Insurance

Incontestability: A provision that enforces a strict time limit of up to a maximum of two years (three years in some states) on a life insurer’s ability to not pay out a claim due to either the policyholder’s suicide or a misrepresentation on his or her application.

Indexed Life Insurance: A type of whole life insurance that provides for the policy’s face amount and premium rate to rise each year in accordance to increases in the Consumer Price Index (CPI). Read More


First 5 Questions You Should Ask Your New Insurance Agent

New-Insurance-Agent

When you decide to purchase life insurance, you are making a good financial decision that will affect you for many years to come. Due to the importance of this insurance for you and your family, there are five questions you should ask your new life insurance agent immediately:

How Much Life Insurance Do I Need?

You should start a conversation with your new life insurance agent by asking how much life insurance you need. The life insurance agent will need to ask you some questions to help you figure this out. For example, the agent will need to know your current income amounts and what outstanding bills you have to determine how much your spouse would need if you died prematurely to carry on in the same lifestyle. Another factor that will influence this decision is how much you can afford to pay for an insurance premium each month. Read More


Ways to Leverage Your Life Insurance That You Probably Haven’t Thought About

Life insurance is a financial tool that will offer protection to your dependents when you die. But it can also be used as an investment vehicle to pay off your existing debts.

Apart from providing a lump sum of cash for your beneficiaries when you pass away, there are some other interesting ways to use your life insurance policy.

Prepare for Retirement

You might not be fond of the idea of taking out life insurance on your parents, so you’ll have enough money to get through your retirement, when they pass away. If you’re willing to try this, you’ll need to get the policy when your parents are 60, and you’re about 30 years old. The cost of the premiums will decline when your parents are 80 – by this time you’ll be closer to your own retirement.

Pay off Debts

The tax benefit is a key selling point for life insurance. Your beneficiaries will get a tax-free payout that they can use to pay estate taxes. Ideally, this should be on a separate policy setup up strictly for the purpose for paying off estate taxes and other debt. Without this policy, your family will be left with the burden of paying off your estate’s bill. Read More


How to Choose the Right Life Insurance Policy

Whether you’re getting life insurance to protect your partner or a houseful of dependents, getting the right policy should be your top priority. With so many options available, it’s easy to delay your decision if you’re overwhelmed by choices. Trying to weed your way through mounds of insurance jargon can impair your ability to choose the right insurance. Pay attention to the following suggestions to make the right decision for you and your family.

Get multiple quotes

Request multiple quotes with several options from different insurance providers. Ask the agents to include options and restrictions so you can pour over the numbers and make a decision. You might opt for term life or whole life. If you have a SMSF (self-managed superannuation fund), your agent might even present an option for SMSF and life insurance. In this instance, you’ll receive a significant tax advantage, in addition to a lump sum, paid to your beneficiaries when you die. Read More


What You Need to Know About Life Insurance

Life insurance is the answer to one of the most troubling questions we face: “what would your dependents do in case of your untimely demise?” It’s a topic most of us avoid thinking about. But the truth is every one of us needs to put in a lot of thought to the dilemma our families might face after we’re gone! Basically, life insurance is the money paid to your family after you have passed away. Think of it as a savings plan that’ll support your family and cover their routine expenses, college tuition for your kids, mortgage payments and any outstanding home or auto loans you might have.

Choosing life insurance can be tricky – especially if you haven’t purchased it before. There are various types of policies and you need to know several things before you purchase a policy that best fits your needs – “such as how much insurance you need and how much premium can you afford to pay.” Here are a few things you should know before you invest in life insurance. Read More


3 Types of Insurance Carrier Rating Systems

You’re ready to purchase life insurance, but you just realized that you know next to nothing about the financial strength of the companies you’re about to buy from. That’s a problem. Sure, there are state guaranty associations, but these state-run insurance funds only cover a fraction of your policy, up to $100,000, or in some cases up to $300,000. You want to be certain you’re making the right decision. Here’s how to do that.

The Rating Agencies

Typical rating agencies include A.M. Best, Moody’s, Fitch, and Standard and Poor’s. While these rating agencies do provide ratings for pretty much every financial institution, there’s a problem with the way the ratings are done. First of all, the rating agencies can be influenced by insurers. That’s right, insurance companies can pay rating agencies to rate them.

When you’re looking for a life insurance company to provide you and your family with a lifetime of insurance benefits, the last thing you want is the rating to be tainted by paid ratings. Even if you give insurers the benefit of the doubt, there’s little reason, other than manipulation, to pay for a rating. If the company is solid, a rating agency will rate the insurer as such. Read More


Four Takeaways to Tackle the California Insurance Licensing Exam

Since November 2012 the California Department of Insurance (CDI) has required that California residents looking to applying for licensing must first pass the license examination before submitting an application. PSI Services is the testing vendor that the CDI uses to administer state-based regulatory licensure exams.

For anyone looking to obtain their California insurance license, you will have to take the California Insurance Exam. The number of questions and time given for the exam depend on the type of insurance that you want to specialize in. However, there are many resources available to ensure that you are at your peak performance when your test day arrives. Below are four tips to use in order to prepare yourself.

1. Talk to Licensed Agents

Before sitting for your exam, talk to licensed agents who have already taken the test. Talk to them about what to expect, and what the atmosphere is like in the room. Simply just knowing what your surroundings will be like once you’re in the test center can keep you from being nervous or distracted. Read More


Understanding High Risk Life Insurance

High-Risk-Life-Insurance

As the saying goes, “Knowledge is power.”  When it comes to life insurance, the more knowledge and experience you have, the better you will be able to serve your potential clients and gain an edge over the competition.  Many agents shy away from high risk life insurance simply because they don’t have the knowledge to properly serve the client.  In this blog post I’ll be discussing what high risk life insurance is, what options your clients might have and I’ll be giving you some tips so that you can carve out a niche for yourself and be successful placing high risk life insurance cases.

What is High Risk Life Insurance

Life insurance companies typically have 4 main health ratings – ranging from Preferred Plus, Preferred, Standard Plus to Standard. Factors such as height/weight, cholesterol, blood pressure and family history of heart disease or cancer are just a few of the components that determine which health rating applicants could receive.  The better the health rating, the better the price for life insurance.

High risk life insurance, also known as impaired risk, refers to cases where an individual would not qualify for regular life insurance, even for a standard health rating.  Typically, this category of life insurance is reserved if a person has a pre-existing condition.  It could be something less serious, such as diabetes, or something more serious like heart disease. Read More