(1) Provide for Loved Ones…
It’s the basic need everyone thinks about. You have a young family.
You are the major breadwinner. Something happens to you. How is
Your family supposed to make ends meet? It’s a form of protection.
Peace of mind.
(2) Key Man Insurance…
You and your partner own a business. It’s grown. Many employees
Depend on you. If something happens to your partner, it’s likely their
Spouse or family will inherit their share of the business. Cash would
Be a lot more useful to them. Life insurance on both partners can
Provide the cash to buy out heirs and keep the business intact.
(3) Emergency Loans…
Hopefully your client lives a long life. The whole life policy accumulates
Cash value, eventually growing to the full face value, or beyond. Many
Policies allow you to borrow money against the cash value.
You would pay interest.
(4) Funding Estate Taxes…
Your client owns a farm. It’s your major asset. It’s illiquid unless you
Sell off acreage. Your goal is to keep the farm intact, passing it to the
Next generation. A life insurance policy, while considered part of your
Estate can produce cash needed to pay estate taxes instead of selling
Land.
(5) Cash Value…
If times get tough, you need cash and you’ve run out of options, a
Whole life policy that has built cash value is an asset. You can turn it in
And receive cash, if necessary.
(6) Value as Collateral…
Your client needs to put up collateral for a loan. The lender wants
Financial instruments. In many cases, you can put up the policy and its
Cash value as collateral. You continue making payments on the policy.
The lender collects the death benefit if you die. The client is motivated
To pay back the loan quickly.
(7) Charitable Giving…
You want to do something special for your religious institution or school.
You might name them as a beneficiary on your life insurance policy.
You might give them the policy as a donation now, taking any tax
Deduction in accordance with the law.
(8) Meeting Obligations…
You are up there in years. You have grandchildren and great grand-
Children. You have promised you will take care of their college
education expenses, but that’s a long way off.
Consider naming an adult custodian
And under the rules of the Uniform Transfers to Minors Act.
When the client passes away, the life insurance proceeds are held
for the child’s benefit.
(9) Special Needs Child…
It’s a huge responsibility. You love them dearly. You can care for them
During your lifetime, but what happens when you pass away? This will
Take money. You will likely be setting up a Special Needs Trust to hold
Those funds. Consider naming the trust as your life insurance beneficiary.
Clients and prospects might consider life insurance as a traditional
Product designed for a very narrowly defined need.
Let them know it can help with many other problems.
- Bryce Sanders
I STILL MAKE HOUSE CALLS!
Hayden Childs
Alabama Licensed Agent
(205) 269-1382
shcmail34@yahoo.com
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