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Friday, May 10, 2013

Have you spoken with your clients about Simplified Issue Life Insurance?

By Anthony DeGregorio, Zenith Marketing

In today’s turbulent economic times, it has never been more important to provide for the safety and security of loved ones. Over and over again, customers turn to their bank to help them achieve financial safety and security. So many bank customers don't know that how a solid life insurance policy can help them do that.

There is ample opportunity for life insurance sales.
Take a recent LIMRA industry study, which showed that 58% of Americans believe that they need more life insurance. More important, more than 35 million American households simply go without!

One of the roots of this problem is painfully obvious: many Americans including some insurance professionals are simply not knowledgeable about life insurance. Another recent LIMRA study classified the average American’s life insurance knowledge as merely “rudimentary” and in a quiz designed by the same study, 70% of Americans failed.

(Think you can beat them? Try it for yourself.)

Our clients are finding the life insurance process lengthy and intimidating, which means we are being remiss in our responsibilities as planners. Granted, some life insurance policies have a variety of moving parts. But an entire subsection of the industry exists to make sure clients don’t have to deal with these hurdles (or at least not as much). Have you spoken to your clients about Simplified Issue Life Insurance?

Simplified Issue products can be either temporary or permanent, and are designed specifically with ease of issue in mind. These products rely on a simple process (usually between 5 and 10 medically-related questions) to establish a client’s eligibility. Once established, the only question is what death benefit the client can afford. Due to its simplified nature, many products do cap the available death benefit at a certain amount.