There is a pretty good chance that some independent financial advisors have clients who lack life insurance coverage for their families. One survey found 85 percent agree that most people need life insurance; an estimated 50 million households say they need more life insurance.
Cutter & Company has educational materials and resources available to help inform clients about life insurance as they consider their options. Here is a sample of some of those resources.
Mark Twain famously said there are two sure things in life – death and taxes. On our website there is a short, informative video that drives home the importance of planning for one of those eventualities at https://www.cutterco.com/resource-center/insurance/the-other-sure-thing. There is also a presentation titled Protecting Those Who Matter Most which contains a solid overview of life insurance along with the various options available to clients. In addition, clients may find the article Assess Life Insurance Needs using a “DNA Test” (which in this case stands for a Detailed Needs Analysis) informative.
An additional tool that can help assess a client’s needs is a life insurance calculator. This tool allows the input of several key variables (Age, Income, Immediate Needs, Long-term Needs, and Available Resources) in determining a hypothetical result. Keep in mind that the calculator is not designed to provide specific advice, guarantee coverage, or provide a recommendation-that’s the job for an insurance professional.
Then there are other articles that get more specific about the various life insurance options available.
- Term Life Insurance - https://www.cutterco.com/resource-center/insurance/is-term-life-insurance-for-you
- Whole Life Insurance - https://www.cutterco.com/resource-center/insurance/how-does-whole-life-insurance-work
- Universal Life Insurance - https://www.cutterco.com/resource-center/insurance/universal-life-insurance
- Variable Universal Life Insurance - https://www.cutterco.com/resource-center/insurance/variable-universal-life-insurance
- Irrevocable Life Insurance Trusts - https://www.cutterco.com/resource-center/estate/a-primer-on-irrevocable-life-insurance-trusts
The American Council of Life Insurers (ACLI) found that nearly 40 percent of U.S. households said they need more life insurance. It’s believed one reason could be that people overestimate how much life insurance costs, by an average of three-times the amount that it actually does. Financial advisors should consider reminding clients that several factors affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. One factor to consider is smoking. An article on Wealthmanagement.com suggested “Kicking the habit can save a bundle” on life insurance.
Feel free to explore the resources available on the Cutter & Company website. We hope you find the educational information about life insurance options helpful.