Photograph by By liderina on Adobe Stock
Perhaps you are new to selling insurance or have already succeeded as a seasoned professional at selling health insurance. Yet you have not considered talking to your clients about purchasing one of the most critical products: life insurance. Let us examine why you should begin learning about life insurance, the products, benefits for your clients, and benefits for you.
How Does Selling Life Insurance Benefit Your Clients?
Life insurance can be an excellent safety net for policyholders and their families. When a person pays premiums to the insurance company, the policyholder safeguards their family from financial tragedy in the event of the policy buyer’s passing. Whole life, universal life, and variable life insurance are types of permanent life insurance that guarantee a death benefit to beneficiaries. These forms of insurance also build a cash value. Whole life’s cash value grows at a fixed rate determined by the insurance company that sells you the policy. Universal life grows money based on current interest rates and investments. Variable life insurance invests money in subaccounts. The stock market performance of these subaccounts causes the cash value to increase or decrease. Which one should your client purchase? You and your client will have to assess their unique situation and find out what kind of plan they are most comfortable investing their money in and can realistically afford.
The wise policyholders will designate these growing funds for themselves and their family’s benefit. If they pass away unexpectedly at a relatively young age, then the death benefit will offer financial help to the surviving spouse and dependent children. After several years, the cash value can supplement retirement for the policyholder. If they need a loan, they can borrow against the cash value. As a result of these two situations, the death benefit will shrink, but they are using the money at a necessary point in life. If one never withdraws from the cash value, the death benefit will financially help the surviving family after the insured has passed away. As an agent, when you speak to your clients about life insurance products, you educate them about options to secure and protect their family’s future. Experiencing the joy of helping others is certainly a valid reason to get your life insurance license.
How Does Selling Life Insurance Benefit the Agent?
Residual income is one significant benefit of selling life insurance. As long as your clients continue paying their premiums to the insurance company, you will earn a passive income each year from the same policies you sold years earlier. Life insurance agents can also earn considerable income through carrier bonuses. Some incentives can include vacations that take place each year.
If you desire a flexible work schedule, ponder earning a life insurance license. As an independent insurance agent, you choose when, where, and how often you work. Of course, the more you apply yourself to the insurance profession, the more you get out of it. Do you want to supplement your income with a second job? Selling life insurance is a viable option to meet that goal.
Are you worried about your current career suffering during a recession? Do you want a stable job that is free from the ebbs and flows of the state of the economy? Once again, you find another reason to pursue obtaining a life insurance license. People will always need insurance, so selling life insurance remains a recession-proof occupation.
If you found this article helpful, please read about understanding health insurance.
Agents
We hope that this information on earning a life insurance license is useful to you.
Empower Brokerage is dedicated to helping you make informed decisions about your health and finances. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans, we want you to be successful!
Give us a call at 888-539-1633 or leave a comment below if you have any questions.
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Joey Hinojosa graduated with a bachelor’s degree in broadcast journalism and a master’s degree in mass communications. He began working at Empower Brokerage in early 2022 and enjoys being creative in his writing, photography, videography, and other projects.
