Life Ins Basics
This is the primary reason people purchase life insurance.
What is to provide financial security for their beneficiaries?
This type of life insurance provides coverage for a specified period and has no cash value.
What is term life insurance?
Provides temporary insurance for each child of the principal insured named on the application or born after policy issue, provided the child is not yet age 18.
CTR - Children's term rider
What is the most popular type of life insurance policy in the United States?
Term Life Insurance
What is a surprising fact you can share to dispel the myth that life insurance is expensive?
Life insurance can cost less than a daily cup of coffee.
Married couple wanting coverage together.
JUL or term with rider
This is the person who receives the death benefit from a life insurance policy.
Who is the beneficiary?
This type of policy combines a death benefit with a savings component that can accumulate cash value.
What is whole life insurance?
What type of policy addresses the concern of "wasting" money on purchasing life insurance because insured believe they will outlive a specified term?
What is a Return of Premium (ROP) policy?
How do life insurance premiums generally change as a person gets older?
Premiums increase with age
What is a good way to explain the complementary nature of life and auto insurance?
Life insurance protects your dependents, while auto insurance protects your vehicle.
55 Female with medical issues
GIFE
This term describes the amount of money paid to the insurance company to keep the policy active.
What is the premium?
This type of life insurance allows the policyholder to adjust the premium and death benefit amounts.
What is universal life insurance?
Policyholder has a 10 year term policy. In year 9, she finds out she has serious health issues. What options, if any could we discuss with the insured?
What is a term conversion?
What percentage of taxes do beneficiaries usually pay on life insurance death benefits?
0%
What can you say to address concerns about affordability when bringing up life insurance?
Flexible plans exist that fit different budgets.
22 Female - no kids - wants basic protection
Instant answer of 10/20 year term
This is the most common objection when writing life insurance policies.
This type of policy requires no underwriting, has a 2 year waiting period, and is available for ages 45 and up
What is a GIFE?
Gives the insured the right to purchase additional insurance, on specific option dates, without evidence of insurability. It is only offered on Limited Pay Life (10, 15, and 20 years) Whole Life, Universal Life, and Joint Universal Life.
Guaranteed Insurability Option (GIO)
Employer-provided life insurance typically covers how many times an employee’s annual salary?
1-2 times their salary
What is an important timing factor to discuss when encouraging someone to consider life insurance? .
Life insurance rates increase with age and health changes.
Insured wants a policy that has cash value and does not want to pay premiums during retirement.
Limited pay policy
What is PIP, Liability, and S Coverage?
Provides $50,000 of death benefit protection for 10 years or until age 50, whichever is longer.
Instant Answer
We have a healthy 55 year old female that has a small budget. She wants a permanent life insurance policy. She is not interested in taking loans, but likes the idea of cash value. What product(s) should we explore?
What is a Universal Life policy?
Ideal for temporary needs like covering a mortgage or until children are independent.
Term insurance
Who should you highlight as potential beneficiaries when bringing up life insurance?
Family focus or anyone that depends on their income. Life insurance can ensure financial security for anyone with dependents, including elderly parents.
Best way to show multiple options and explain life insurance.
Triple play