Editorial Comment from Jonathan A Shaw, CLU ChFC 
The time has arrived when Life Insurance has finally become the most appreciated financial product in the marketplace. Where else can your clients protect their families from the ravages of inflation and taxes? For just a few hundred dollars per month your clients can guarantee significant tax-free incomes for their families, while avoiding income tax, estate tax and gift tax.
With gas prices quadrupling over the last 10 years, your customers are realizing the ravages of inflation on a daily basis; yet many underestimate their family's need for our product. When I first started in the business in 1978 many who purchased life insurance in the 1950's and 1960's assumed that a death benefit of $10,000 would be significant enough to provide their family with a lifetime income. Many customers today have $100,000, $200,000 or even $500,000 of life insurance and assume that will be plenty to take care of their family.
Have you asked your clients lately how much money they have spent in the last 10 years? Most of them have spent $500,000 or $1,000,000 or more during that period of time. You will also find many who have paid that much in income tax alone over the last 10 years! How can that client expect a life insurance policy of $100,000, $250,000 or even $500,000 to take care of their family for life?
No one will admit to this but someone has been telling our customers that they wouldn't need life insurance when they were ready for retirement. Someone told them that if they diversified their assets and studied the market, that they would earn 18% or more on their investments annually! Too many of them have fallen into a trap where they need to invest riskier to try and achieve those unrealistic investment goals.
In hindsight, the overly optimistic goals took Life Insurance out of the picture. "At 18% return on investments your investments would double every 4-5 years, so why would you want Life Insurance? All you had to do was live another 4-5 years and your investments would double!" More easily said than done.
Inflation is arbitrary, capricious, dangerous, erratic, fickle, flighty, haphazard, impetuous, impulsive, mercurial, tricky, unpredictable, unscrupulous, villainous and volatile! No wonder your clients didn't see this coming!
Well, with the market dropping 30% from the Dow's high of 14,000 in November, what are your customer's expectations today? Are they a little more humble? With gas topping $4.00 a gallon, are they a little more concerned about inflation?
There could not be a better time to go back to your clientele and talk to them about the guarantees inherent in permanent, guaranteed death benefit Life Insurance. They can still achieve the financial goals they set for their family. It is inexpensive and easy for your client to achieve their financial goals. However, don't talk to them about buying an additional $100,000 of insurance, start the conversation at $1,000,000! Neither you nor your clients will ever regret this decision.
Shaw American Financial Corp, home of the most competitive products and underwriting in the industry awaits your call! |
