A really good source of business for agents at National Agents Alliance is senior citizens. Around the age of 50, many people start to see their term life insurance policy come to an end. This is a great time for agents to do some teaching about how insurance will still be essential to the senior’s financial future. Should the senior renew their term life insurance policy, start a permanent policy, like whole life insurance, or should they skip life insurance altogether and focus on saving?
The answer to these questions will depend greatly on each person’s unique circumstance and what they desire for their financial future. This is where the NAA agent can deliver a great service to someone at the crossroads of their financial planning. With the life expectancy of the average person being greater today and people carrying more bills than ever, it may make sense to keep a life insurance policy as long as they qualify.
Another term life insurance policy is definitely an option, but the senior would have to qualify for an affordable premium by being healthy and finding the right insurer. An additional consideration is that the client could likely come to the end of this term as well leaving this decision to be made again. So, many people will do best with traditional whole life, which has fixed premiums and lasts a lifetime. This type of policy will build cash value and the savings are backed by the insurance company’s high-grade bonds and mortgages and they accumulate interest and often have dividends. Whole life is among some of the few long term fixed income investments that keep up with increasing interest rates, paying 15 times more than a bank savings account. It may be more expensive though, so be sure to look at a client’s particular budget to see if it would work.
At National Agents Alliance, our agents are taught to reach these people before that term policy expires because most of those policies allow for conversion to a permanent policy without proof of insurability – an important issue for older clients. When you do that you now have a client for life, one that probably has children and grandchildren who are all potential clients!