The economic situation in our country is one of the hottest topics for people during this election year. Presidential candidates are trying to convince voters that they have a plan to fix the crisis and lower the national unemployment rate. In the meantime, many people are struggling to pay their bills, keep a roof over their heads, or even to put food on the table; leaving them feeling trapped and out of options. However, according a Fox Business article, “Out of Work? Consider Tapping Your Life Insurance Policy for Quick Cash,” a life insurance policy could be a short-term solution to this very long-term problem. This is where the National Agents Alliance agent can help educate the client.
A survey completed by the National Association of Insurance Commissioners (NAIC) found that nearly half of people surveyed didn’t know that life insurance can include investment options, and 2/3 didn’t realize that some types of life insurance include a cash value. We know that term life insurance policies do not develop cash values and are no help in this situation. On the other hand, as an NAA agent you can provide whole, universal, variable, and permanent life policies that combine both death benefits and investment components that build cash value over time, and these policies can provide needed cash in the future if the client faces financial hardship like what people are facing today.
If your client gets in a position where it’s necessary to borrow money from their policy, the funds can be repaid to restore the full value of the policy, and borrowing money from their own policy is much cheaper than using credit cards, cash advances, or bank loans, and in most cases and there’s no repayment schedule; good reasons why some clients could use this alternative.
As a full-service agent representing National Agents Alliance, you have the opportunity to not only provide the insurance protection families need, but you can also insulate families against financial hardship while they are living by providing insurance products that will have available cash in the future. If you will listen and learn, as taught in Andy Albright’s 8 Steps to Success, you can become that trusted financial advisor saves your clients from financial ruin.