Life Insurance Basics
This type of life insurance covers you for a set period, like 10, 20, or 30 years.
What is term life insurance?
The first step in identifying life insurance needs is understanding this about your client.
What is their financial goals and family situation?
True or False — Life insurance is only for people with children.
What is False?
Life Insurance Awareness Month takes place in this month each year.
What is September?
A common rule of thumb is to carry life insurance equal to this many times your annual income.
What is 10–12 times?
This type of insurance provides lifelong coverage and builds cash value.
What is whole life insurance?
Asking about a client’s mortgage, debts, and dependents helps determine this.
What is their coverage amount?
True or False — Life insurance from work is usually enough.
What is False? (70% of the U.S population is under-insured)
The first life insurance company in America was founded in this century.
What is the 18th century (1700s)?
A $500,000 policy with a 20-year term pays out this amount if the insured passes away during the term.
What is $500,000?
(TAX FREE)
The amount paid to beneficiaries when the insured dies.
What is the death benefit?
Many clients overestimate the cost of life insurance by this percentage.
What is three times the actual cost?
Some people think life insurance is too expensive, but the average monthly cost for a healthy 30-year-old is about this.
What is $20–$30 per month?
(Based off 100,000 policies)
This U.S. president purchased one of the earliest life insurance policies in 1844.
Who is Abraham Lincoln?
If a client earns $75,000 annually and follows the 10× rule, they should consider about this much coverage.
What is $750,000?
Premiums for this type of policy are usually lower at first but increase as you age
What is annually renewable term insurance?
This sales approach focuses on protecting a client’s family, not just selling a product.
What is needs-based advising?
True or False — Only the breadwinner needs life insurance.
What is False?
The whole family should be insured!
This music artist has actively spoke about how important life insurance is to have!
Wiscasian - Mansion
Who is T-Pain?
This type of analysis estimates how much coverage is needed to replace income, cover debts, and fund goals like college.
What is a needs analysis?
This is the ability to switch from term insurance to permanent coverage without proving insurability.
What is the conversion privilege?
This strategy involves gradually layering multiple term policies with different end dates to match changing needs.
What is laddering?
This misconception is why many young, healthy people delay buying life insurance.
What is “I don’t need it yet”?
This is the CHEAPEST it'll ever be!
This industry group organizes Life Insurance Awareness Month each year.
What is LIMRA/LIAM (Life Happens)?
A 35-year-old non-smoker can often get a $500,000 20-year term policy for less than this per month.
What is $30?