Despite the fact that most people are familiar with the benefits of life insurance, not enough people have it. The primary reason behind this is that people think they don’t need the product if they are young and healthy. As an family member who has gone through the sudden loss of a primary breadwinner can tell you, however, the reality is that an accident can happen at any time and it can have far-reaching consequences.
There’s where life insurance comes in. Life insurance helps to give families the peace of mind that their family will be provided for if something happens to the policy owner. The money from a life insurance policy can be used to cover immediate expenses, regular expenses, or even more long-term goals, like a college education for children.
As a life insurance agent, you get to help individuals gain this peace of mind and confidence of knowing that their loved ones will be cared for. You play an important role in helping them decide the right type of policy.
As an agent, it is important to partner with an insurance agency that has broad connections with numerous different companies and products including term life insurance, universal life insurance and whole life insurance.
What follows is more information on each of these types of life insurance so that you can determine which products may be the most appropriate fit for your clients.
There are two primary forms of life insurance known as temporary or permanent coverage.
Term Life Insurance
Temporary coverage is known as term life insurance because it is similar to renting a life insurance policy and that the client can select a period of between 10 and 30 years over which to receive coverage.
Many individuals just beginning their working career and obtaining a mortgage, for example, may prefer a term life insurance because it is the most inexpensive option to provide financial protection for family members while expenses are relatively high. At the end of this term period, however, term life insurance expires and the individual may have the opportunity to convert the term life insurance policy into a more permanent life insurance policy known as universal or whole life.
The benefits of working with term life insurance are that it can meet coverage needs for as long as thirty years and allows the maximum amount of coverage for each premium dollar. The downside of term life insurance, however, is that it has no savings feature and it does not offer a lifetime coverage.
Permanent Life Insurance
There are two primary types of permanent life insurance known as whole life and universal life insurance. The benefits of whole life insurance are that there are fixed premiums and that clients can accumulate tax deferred cash within the policy.
Much like universal permanent coverage, lifetime coverage is offered. That being said, there are some downsides to whole life insurance including inflexible premiums, surrender charges if the client decides he or she no longer wants the policy, and the rate of return on a whole life insurance policy tends to be lower than other investments.
Selecting the right agency to partner with is important, because the right company can make your life much easier and allow you to do what you do best- serve your clients. At T.R. King, we are committed to giving you access to some of the most stable and reputable life insurance policies available today and making the process as easy as possible. We’re here for you if questions arise, and it’s our goal to be your support system as you grow your life insurance business.
To learn more about the most appropriate policy for your individual clients, consult with the experts at T.R. King Insurance. Working with an agency who has broad understanding of the various products and insurance carriers in this space can help you make the right decision for your clients.
Ready to start an exciting career? Call us at 1-540-400-6275 or 1-800-590-7207 to get started with us as an agent today.