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eINDEPENDENT 10/01/2011

Making the Case for Children’s Life Insurance

As a life insurance producer, one of the toughest topics to broach is likely children’s life insurance.  Though it may make your customers uncomfortable at first, if explained correctly, you can ease any discomfort and help your clients understand the value. Children’s life insurance gives children a financial advantage at a young age.  (Writer – what does the preceding sentence mean?  What point are we trying to make to parents?  It could be more concrete.)So how do you make this point to parents?

Cash Value

Adults who are familiar with the benefits of whole life insurance have an understanding of a policy’s cash value.  The same holds true with children’s whole life insurance. As the child grows, a nominal premium is paid into a plan which gains cash value over time. The child can draw on this cash value as an adult, giving him or her a clear financial advantage at a young age.

Guaranteed Coverage

Though it is hard for parents to imagine when a child is young, there are certain health complications and careers choices that can make it difficult to be approved for life insurance later in life. By locking in a children’s life insurance policy when their children are young, parents can rest assured that their children will have guaranteed, lifelong coverage.

Protect Future Generations

Just as your customers purchase life insurance policies to protect their families’ financial futures, purchasing children’s life insurance can work to protect future generations.  When a child with life insurance coverage grows to adulthood, a policy will be in place to provide protection for his or her family. In explaining this to your clients, you can paint a clear picture of the long-term benefits of investing in children’s life insurance.

The nature of children’s life insurance leaves many feeling unsettled. As a life insurance broker, it is your responsibility to present your customers with sound insurance investment advice.  If you feel that investing in children’s life insurance is right for the individual needs of any of your customers, share your rationale.  Explain that it is a safety net and an investment opportunity.  You may be surprised to learn just how many of your clients will be interested in investing in children’s life insurance.

Still have questions about talking to your clients about children’s life insurance? Not sure how to begin? Please share your questions and comments below. At eFinancial we are working to help our members share and grow together.  If you would like to speak to us directly please do not hesitate to pick up the phone and speak with our Producer Resources Group today. We’re here to help you run a successful business!