Life Insurance is Never Bought, it’s Sold
When was the last time someone you knew willingly went online to shop for life insurance? Quite often we use the internet to shop and compare prices on necessary items like groceries or luxury items such as a nice pair of expensive shoes. Very often people don’t think twice about using the internet to make purchases such as these. It’s how we live. If we turn the tables a bit and asked when was the last time you or your friends openly shopped online for life insurance, what would your answer be? Although there are many available online portals one may use, quite often many people tend to not purchase life insurance until they either need it, when it might be too late or have experienced a catastrophic event when someone they know has passed away that didn’t have any.
There are countless times we read in the newspaper or on social media about instances where people pass away suddenly. Many times, it’s someone that has a young family, and now their family is left to be on their own, with very little financial support. In my experience, I have received calls from people that were referred to me by friends or clients inquiring about life insurance. My process is explaining the importance of life insurance, and how it works has empowered my clients to purchase a policy to ensure their family has been taken care of.
However, there was one instance that I remember well whereby the tone of voice on the other end of the person referred to me had a bit of anxiety. After a cursory fact find on the phone, I learned the person is 40 years old, has 2 school-aged kids, makes a comfortable living, but was just diagnosed with cancer – something they didn’t want the person making the referral to know. They expressed that since they were diagnosed, they felt it was time to get life insurance. While I felt terrible that I had to share the sad news that my ability to help them in getting life insurance may have been shattered, I did ask them if getting life insurance was something they considered when their oldest was born. The response was even more upsetting to me, but something I have heard many times before. “I knew I had to get life insurance because I just had my first child. I didn’t because it wasn’t a priority, and after a while, I forgot to do it”.
There is a common saying, “life insurance isn’t bought, it’s sold”. The reason is that while people recognize the need for life insurance to protect their families and loved one, it’s not on the top of their priority list. When discussing risk management with clients, as it relates to all of their insurance needs, I add humor to the conversation in explaining that insurance is typically the last thing one wants to think about. Quite often clients want to talk about making money, investing, their children, their jobs, etc. Nobody wants to think about their mortality. Nonetheless, imagine how different it would be if someone like the person who had cancer or those that unfortunately pass away prematurely, while not having life insurance, took the time to discuss purchasing a policy.
While life insurance can vary greatly based on the death benefit and type of insurance contract, the material difference between having a policy when you don’t need it versus not having one when you do can be astonishing. It could make the difference between night and day. In a traditional sense, when one has their first child, one may be overwhelmed with emotion. They are excited to bring a new life into the world and have the greatest opportunity to raise a child in their home. Most first-time parents have to think quickly about all the necessities they need when they get home from the hospital. Many of them contain items such as a crib, diapers, and baby clothes. I would suggest adding one more: life insurance.
Life insurance policies are subject to eligibility requirements and restrictions and may not be right for everyone.
Registered representative of and securities offered through Hornor, Townsend & Kent, Inc. (HTK), Registered Investment Advisor, member FINRA/SIPC, 600 Dresher Road, Horsham, PA 19044, (215) 957-7300. HTK does not accept time-sensitive or action-oriented messages delivered via e-mail, including authorization to “buy” or “sell” a security or instructions to conduct any other financial transaction. 2360942AL_APR21