Term Life Insurance is a great asset to protecting your lifestyle and family, but how do you choose the Right Term Life Insurance provider and policy for your clients? This is the question that is answered by agents who approach the benefits of term life insurance from the buyers perspective. Here are 5 items that agents can help their clients consider when choosing a Policy.
Varieties of Term Life Insurance on the Market
Determine the application and underwriting process. ?Is an exam required? Is it a guaranteed issue policy? ?Are different rating classes offered? ?Maybe you have some disabilities and might not pass an exam. ?You would probably benefit from choosing a policy you would have a better chance of securing. ?Are you young and in great health? ?Then maybe you shouldn?t consider a guaranteed issue policy. ?Find out all the background information before overwhelming your client to find the right policy.
Once you determine the client?s background and need, you can then demonstrate how the Premium works. ?Your client will need a competitive rate, but they also need to know if they have a 10/15/20/30 year guaranteed level or if the premium can change part way through the term.
Decide how much Term Life Insurance they need. For a young family with small children and a mortgage, a larger policy might be more appropriate. ?Older couples with limited expenses could consider a smaller policy. ?Determine how you want to use the Death Benefit and figure out how much insurance they need to buy to cover that need.
Determine what special features of the Term Life Insurance policy is needed. Some policies are convertible to permanent insurance without new underwriting. Some policies have Chronic, Critical or Terminal Illness Benefits, Children?s Riders, ROP, Waiver of Premiums, etc. ?Your client will need to know how these features work and how much they cost. ?There is no need to incur further cost for a feature that your client will not need.
Discover if there are any Tax/Estate Planning Implications of premiums and benefits. Advising your client to consult with a tax expert to determine if there are any tax ramifications or benefits from their policy will show you are an agent who is truly a professional.
Finding the right Term Life Insurance Policy
Those are some highlights of finding the right Term Life Insurance Policy for your clients as an agent. Buyers want an agent that they trust from a stable insurance company with strong ratings and great service, such as Sagicor Life. Working with a company such as Sagicor Life, you can obtain great rates for your clients that will suit their needs, as well as the needs of their family.