4 Ways Life Insurance Can Enhance Your Clients’ Financial Plans
September 17, 2024 | 5 min read
As a financial advisor, you understand that every client’s financial situation is unique, but one thing remains consistent: if they have loved ones depending on them, life insurance is a critical part of their financial strategy. According to LIMRA’s 2023 Life Insurance Barometer Study, 1 in 10 Americans would experience financial hardship within a week if their household’s primary earner passed away.
Life insurance is more than just a safety net—it’s a versatile tool that can help your clients secure their financial future. Here are four impactful ways life insurance can support your clients’ broader financial goals.
1. Provide Financial Protection for Loved Ones
The most fundamental use of life insurance is to provide financial protection for your clients’ families in the event of their passing. Without a primary earner, households can struggle to meet financial obligations, whether it’s covering everyday expenses, paying off debts, or securing their future.
A life insurance policy ensures your clients’ loved ones will have a financial cushion to lean on, offering peace of mind during uncertain times. Encouraging clients to reassess their coverage regularly ensures they have the right amount to protect their families.
2. Help Clients Fund Their Children’s Education
Many clients prioritize saving for their children’s education, and life insurance can play a unique role in achieving this goal. Some policies allow cash value accumulation, which can be accessed through loans or withdrawals* and used to supplement college savings.
Additionally, if your client passes away prematurely, the death benefit can help ensure their child’s education plans aren’t derailed. The cash value of life insurance also won’t affect financial aid eligibility, giving clients greater flexibility in planning.
3. Supplement Retirement Savings
For clients looking to diversify their retirement strategy, life insurance can be a valuable asset. Certain policies allow for the accumulation of cash value that grows over time and can be accessed as an additional source of income during retirement. Whether your clients use it to retire earlier, travel, or enhance their lifestyle, life insurance provides a supplemental stream that can support their long-term goals.
Highlighting the dual benefits of protection and potential retirement income can help advisors position life insurance as more than just a risk management tool, but as part of a comprehensive financial plan.
4. Leave a Lasting Legacy
Life insurance also helps clients leave a legacy, whether it’s for their loved ones or a cause that’s meaningful to them. The death benefit is paid in cash, generally tax-free, and avoids the delays of probate, ensuring funds are distributed directly to beneficiaries.
Clients who want to make an impact beyond their immediate family can also name charitable organizations as beneficiaries, providing them with a lasting philanthropic legacy. Advisors can help clients structure their policies to reflect their values and financial goals.
Positioning Life Insurance for Your Clients
Life insurance isn’t just about protection—it’s about creating flexibility, securing futures, and offering peace of mind. As advisors, you have the opportunity to guide your clients in choosing the right type of life insurance to fit their unique needs, whether it’s protecting their families, enhancing their retirement, or leaving a legacy.
To learn more about how life insurance can support your clients’ financial goals, connect with us at Regis Financial Partners for tailored solutions that fit your practice.
