Don’t Let Your Clients Lose ANY Of Their Future Earnings!

Clients seldom stop and think about how significant is the amount that they will actually earn over their working life. So, it’s your job to make sure they do so when planning to protect against the loss of that amount. 

The procedure is quick and easy. Follow a few steps:

• Suggest term coverage. It is economical and is designed to cover only the period of need.
• Determine the number of future working years, and aim a little long.
• Multiply that by the client’s current earned income.
• Find how much that amount of coverage will cost, using a level premium product.
• Since the death benefit is income-tax free the cost can be reduced by multiplying by only the client’s after-tax
• Since the death benefit is received in a lump sum, the coverage can be further reduced by accounting for the time value of the lump sum.
• Do the same for any second wage-earner on which the household depends.

Some thoughts:

• Suggest maintaining the amount of coverage as each year passes to compensate for inflation and any increases in earnings.
• Term insurance is not a commodity. There could be significant differences in policy features or a carrier’s medical underwriting. Don’t just choose the lowest price generated on a spreadsheet.
• Some permanent coverage may be desirable to extend protection beyond the working years – especially if the policy is designed to include critical illness or long-term care riders.
• This effective process reduces the time and increases the profitability of term sales, especially when coupled with the ease of online procedures for application and placement.

Contact Tom Virkler, JD, Director of Advanced Markets, at 706-614-3796 or tom@cpsadvancedmarkets.com in each case for help with product choice, application procedures, the role some permanent or other product coverage might play in the planning process, or assistance with medical underwriting issues that may arise.