September is National Life Insurance Awareness Month, the perfect time to make sure your clients know the importance of future planning and financially protecting their families with life insurance policies. Have you discussed all the benefits a life insurance policy has to offer with your clients? For your clients who currently have policies with you, are you conducting annual reviews with them?
If you feel it’s time to talk to your clients about getting the most out of their life insurance, here are some questions from our partners at Pacific Life that may help guide your conversations:
- Does their coverage fit their current lifestyle?
- Have they recently gotten married or had a child?
- Have they started a business?
All of these life events can change the needs and function of your clients’ policies, so be sure to regularly have these conversations with them. Don’t forget death benefit protection! Ask your clients how they plan to use it. Do they want to help:
- Protect their family’s finances?
- Protect a business?
- Supplement their retirement income?
Another topic you may be interested in discussing with your clients is using a life insurance policy as additional compensation through an occupation. According to ESPN.com, University of Michigan head coach Jim Harbaugh has added an impressive $4M addendum to his contract in June 2016. The amendment states that the university will loan Harbaugh $4M in 2016 and an additional $2M over the following five years to pay his life insurance policy’s premium.
According to records obtained via a Freedom of Information Act request, the first loan payment was made on June 3, 2016. Each additional $2M payment will be made later this year starting in December. As long as the policy stays active, the loan does not need to be repaid until his death, at which time the university can receive its loan payments back, and any additional funds could be passed to Harbaugh’s beneficiaries. Not a bad deal, if you can get it!
If you have questions on how to create the most effective life insurance strategy for your clients, please reach out to Impact’s Life Team today!