When talking about potential clients in the life insurance industry, retirees may not seem the most obvious to consider. Life insurance is often meant to replace lost income if the policyholder were to die prematurely, but if they are no longer working, there’s no income to worry about replacing- right? However, there are still some situations in which life insurance for retirees is a necessity. SilverSide Insurance Marketing is here with some questions for you as an agent to consider when helping potential clients who are already in retirement:
What Should Retirees Consider When Looking into Life Insurance?
- Are they working? If your retired client is not currently earning income, there may not be much of a need for life insurance. However, if the retiree’s death may lead to significant loss of income (such as for their spouse or dependents), there could still be a need for life insurance even after retiring.
- Are their children or spouse self-sufficient? Just because your client is retired does not mean they don?t have a family to look after. For clients who had children later in life (children who may not be out of the house just yet), life insurance is an absolute necessity to ensure their safety should their parent pass away. Also, if one spouse is dependent on the other?s retirement savings or income, life insurance will ensure they are not left with a massive loss of income when the other spouse passes away.
- Are they in debt? For retired clients who are still paying off debts (such as from real estate deals, failed business ventures, or student loans), life insurance is a must if they want to make sure their family won?t be saddled with their debt upon their passing.
- Will they need to pay estate taxes? Life insurance can be an excellent estate planning tool for those who may not have enough liquid assets to cover estate taxes after their passing. If your client is looking to keep some property or other assets in the family after their passing, they may want to look into life insurance.
- Do they want to leave a legacy? If your client has money that they intend to leave to their children or grandchildren, there are certain methods of designing life insurance that are efficient, tax-advantaged ways to ensure that the money goes to their heirs.
- Do they want life insurance? It seems like a simple enough question, but it?s one that many agents don?t even think to ask. However, your client might be looking to leave some money behind for their family or even a charitable cause when they pass. Life insurance will allow them to leave a substantial amount simply by paying a little in every month.
What Is the Best Type of Life Insurance for Retirees?
Just as there are many questions to ask clients, there are many options when it comes to life insurance for retirees. Here are some options based on some of the aforementioned situations:
- Term Life Insurance: While term is generally thought of as life insurance for younger clients, there are certain situations in which it can benefit clients in the early stages of their retirement. Term life is an excellent choice for clients who are still in debt, as a term life policy that lasts until the payments on the debt are scheduled to end will help to extinguish that debt. Term life may also make sense if your client continues to work after retiring (even if it?s just part-time), in order to supplement savings and to protect their spouse from the loss of income that would occur when they pass away.
- Whole Life: This can be an effective tool to cover final expenses, or to pass money along to a spouse or dependent.
- No-Lapse Universal Life: Many of these policies will protect clients up to age 120, so if your retired client is looking for life insurance but doesn?t anticipate their passing anytime soon, they will be secure in the knowledge that they and their loved ones are protected. Certain clients, upon retiring, may find that they have a cash-value whole life or universal life that still requires ongoing premium payments. They may choose to use the cash value to convert to a fully paid-up no-lapse universal life with a guaranteed death benefit that would not require ongoing premiums.
Life Insurance for Retirees
Just because a client is retired does not mean that they can?t benefit from life insurance. Every client?s situation is unique, so it is important to consult them on what their needs are. SilverSide offers a number of different products from our trusted insurance carrier partners to serve any client?s needs, no matter what stage of life they are in. Be sure to call SilverSide to see how we can help you with your client?s individual wants and needs today. 480.400.7171