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Protection Beyond the Pandemic

Posted by Bill Jackson J.D. CLU on Wed, May 13, 2020 @ 12:00 PM

During this COVID-19 pandemic the future is uncertain. One thing that is certain is Americans, generally, are underinsured and many families and businesses need the protection offered by life insurance now more than ever.


Are consumers buying life insurance right now?

As financial professionals we have all wondered whether families or businesses will postpone buying decisions during these difficult times. After all, many major corporations have instituted moratoriums on benefits and hiring.

However, for many Americans finances have not changed materially. Small to medium-sized businesses still have freedom and capital to implement succession and retirement plans. Furthermore, families and businesses have more time to consider how to plan for retirement and protect their family or business against being unable to pay bills. Couple these facts with the heightened awareness of the general public as to the need for protection, and we have a positive environment in which to help clients protect against the loss of human life value.


How do we address client needs and propose viable strategies with stay at home orders in place?

Fortunately, Partners Advantage has developed a Virtual Selling System (VSS) available on our website that will guide agents and agencies through best practices in meeting client needs virtually. From Zoom- based discovery meetings to electronic policy delivery -- each step in the process is covered in detail.

Many carriers have also made life easier. Six carriers offer true non-med policies and in one case coverage up to $2M. This means that an underwriting decision can be made without an exam ever being required. This is not guaranteed issue, the decision will just be made based on available information. Several other carriers offer non-med programs up to $3M but will resort to an exam if health issues arise. Others have stepped up offering to accept examinations done within one or 2 years in lieu of an exam. One carrier has even stated they will accept other carriers underwriting done within 3 years on current policies and offer equal coverage up to $1M.

One carrier claims life insurance application submissions are up 64% since the pandemic started. Make sure you are providing the protection that your clients are seeking.

Why life insurance can be helpful in meeting current and future client needs

Key client concerns are usually retirement funding and paying bills. What better way to help a loved one pay bills in their absence than through life insurance?

In the retirement arena, cash value life insurance not only serves as a resource for augmenting retirement income, it is the only asset that is self-completing. In other words, if the client passes suddenly, loved ones get an amount similar to what would have been available at retirement even though only a few premiums have been paid.

Specific ideas for families

Look at mortgage, expenses, college plans, retirement concerns as well as chronic illness concerns and illustrate how life insurance can help solve these problems.

Specific ideas for business owners

Ask if Paycheck Protection Program (PPP) or the Economic Injury Disaster Loan (EIDL) have been advanced during the pandemic and offer to protect the business with key person insurance.

Suggest they consider a buy-sell agreement during this downtime to protect the business and families involved.


Many families and business owners do not understand the lifetime, tax, and protection benefits, and the reasonable cost of life insurance. Make sure in your solution presentation that you relate the benefits of life insurance to real client retirement and paycheck protection concerns uncovered in the discovery interview.

Call the Platinum Team or your Partners Advantage marketer for more details on selling life insurance virtually.

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Tags: IUL (indexed universal life insurance), Virtual Selling



This content is for informational and educational purposes only and is not designed, or intended, to be applicable to any person's individual circumstances. It should not be considered as investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action.

The third party tools and information included in this communication have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Partners Advantage – A Gallagher Company.  Third party vendors are not affiliated with Partners Advantage – A Gallagher Company.  Each Financial professional should carefully consider and research the merits of any third party materials that are provided to their clients.