How Can Insurance Agents Help Clients Understand Life Insurance Without Overwhelming Them?


    How Can Insurance Agents Help Clients Understand Life Insurance Without Overwhelming Them?

    Explaining the value of life insurance can be a delicate balance between informative and overwhelming. We've gathered insights from financial advisors and insurance experts to share one specific way they've successfully conveyed its importance to clients. From articulating financial goals and priorities to comparing life insurance to business continuity, discover the five thoughtful strategies our experts employ.

    • Articulate Financial Goals and Priorities
    • Use Relatable Analogies
    • Highlight Income Protection
    • Frame as Personal Commitment
    • Compare to Business Continuity

    Articulate Financial Goals and Priorities

    What happens to your family's finances if something should happen to you? Work with your client to help them articulate their financial values, goals, and priorities, and ask both the husband and wife if either one of them passes, would they still want those priorities for their family? If one says no, ask them why they would want their family to have to struggle or if that financial goal is a priority. If they agree that both family members are important contributors to the family team and that they would not want the surviving family to suffer financially if one of them passes, they understand the importance of life insurance.

    Eric Olson
    Eric OlsonFinancial Advisor, First Command

    Use Relatable Analogies

    In conveying the importance of life insurance to a client without overwhelming them, I focused on a relatable analogy. I likened life insurance to a safety net, explaining that just as we have car insurance for unexpected accidents, life insurance provides financial protection for loved ones in unforeseen circumstances. This simplified comparison helped the client grasp the fundamental purpose of life insurance without delving into intricate details, making the concept more accessible and highlighting its relevance in a straightforward manner.

    Brad Cummins
    Brad CumminsFounder, Insurance Geek

    Highlight Income Protection

    When we talk about life insurance to a client, we just ask them about their family and who relies on them for their income. We then ask them what would happen if their income didn't come in anymore because they were no longer around. That's really what life insurance is all about - making sure those who rely on you are still taken care of should the worst happen.

    Samuel Greenes
    Samuel GreenesFounder, BLUE New Jersey Insurance Agency

    Frame as Personal Commitment

    The key to discussing life insurance isn't in overwhelming clients with data, but in making the concept relatable. I often say, 'Think of life insurance as a promise you make to your loved ones for their future security, a promise that stands strong even when you can't be there.' This simplifies the idea, moving it away from being just another financial obligation to a meaningful, personal commitment. It's about ensuring your family can maintain their lifestyle, afford education, and cover any debts or final expenses without your income.

    By framing it this way, it becomes less about the policy details and more about the peace of mind and protection it provides. This straightforward approach often turns the conversation from skepticism to understanding, highlighting life insurance as a necessary part of planning for the future.

    Eliezer Zupnick
    Eliezer ZupnickFounder, Zupnick Associates Insurance

    Compare to Business Continuity

    I had a client who was a small-business owner, and we discussed the importance of insurance for his company. He had never considered life insurance as something crucial. To help him understand the significance, I drew a comparison between business insurance and life insurance to his backup generator. I explained that just as his backup generator ensures his business keeps running during power outages, life insurance acts as a financial backup for his family during life's unexpected power outages. The analogy hit home, and he immediately realized the importance of protecting his family with life insurance.

    Abid Salahi
    Abid SalahiCo-founder & CEO, FinlyWealth