“Old Insurance vs. New Insurance” – Which do your clients own?Ryan Hogan
While the death benefit is quite often the most important feature of life insurance, there are many products available that provide additional features and benefits.
The term “old insurance” applies to policies that don’t have much additional value beyond the death benefit, while “new insurance” would refer to life insurance where clients do not need to die in order to receive a benefit.
We advocate regular reviews of your clients’ insurance policies, to ensure they have the most appropriate and effective product solutions to meet their ever-changing needs.
A policy review may uncover that the existing amount of coverage is no longer reflective of their true need and/or that there’s opportunity to enhance their coverage via the inclusion of living benefits.
Take for example the following:
- Living Benefits – Long-Term Care, Chronic Illness and Critical Illness Riders are just a few examples of “new insurance” benefits available now.
- Index UL can provide your clients with tax-favored accumulation and tax-free income – which can serve as an alternative solution to the Roth IRA if they are restricted by contribution limits or earn too much income, making them ineligible for the Roth IRA altogether.
- For younger clients concerned about retirement income, cash value life insurance makes for a great addition to their investment portfolio by providing a diversified source of accumulation.
Most clients only know about “old insurance,” and would likely consider a replacement if they were aware of the enhanced benefits available through “new insurance” products.
Don’t let your clients hear this story from another agent or advisor.