(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 (insured) 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
https://fflheartland.advisorprofiles.com/article/211641/1/1
Got Insurance?
Hayden Childs
Alabama Licensed Agent
(205) 269-1382
