The real value of life insurance: peace of mindArticle added by Ryan Parker on August 21, 2012
Ryan Parker

Ryan Parker

St. Petersburg , FL

Joined: April 04, 2011

Knowing one's family is going to be financially protected when you leave this world is an equally powerful benefit of life insurance, so don't risk overlooking the crucial emotional aspect of the sale.

Everybody seems to understand the most elemental benefit of life insurance — that upon the death of the policyholder, a life insurance company cuts checks that total the amount of the decedent's policy and delivers them to the family and any other named beneficiaries as prescribed by the late policyholder. Having life insurance means loved ones will have money to survive should one die earlier than anticipated, and this is indeed a solid selling point, but don't lose sight of life insurance's other chief benefit — peace of mind.

Knowing one's family is going to be financially protected when you leave this world is an equally powerful benefit of life insurance, so don't risk overlooking the crucial emotional aspect of the sale.

LIMRA conducted their latest Consumer Sentiment Survey recently and uncovered some fascinating data that relates to how Americans feel about life insurance and the benefits of having a policy in place. The survey illustrates that the overwhelming majority of people tend to have positive emotional reactions to life insurance and by extension, to the life insurance industry as a whole. This positive perception only underscores how large a role emotion plays in the purchase and conceptualization of this important product.

According to the survey, eight in 10 consumers who have had a positive experience with life insurance believe the life insurance industry serves a crucial purpose following a loved one's death. What's more, almost two-thirds of Americans feel that life insurance has the power to grant people peace of mind; and that number increases to 76 percent if the individual has had either a direct or indirect but positive experience with what life insurance does for both the insured and his or her beneficiaries.

And in this business, there's an awful lot to be said for peace of mind. “The good news is, the majority of people understand the value of life insurance and what our industry offers," commented Robert Kerzner, president and CEO, LIMRA, LOMA and LL Global. “But even better, our customers and those closest to them, who can look to their own experience, recognize the good our industry does."

So, what good can you personally do as an agent or advisor? If you offer life insurance, you're already in a position to make a real difference in the lives of your clients and prospects, not to mention their loved ones. Odds are you've sold a variety of policies to a variety of different people, always doing your due diligence and presenting the most appropriate life insurance policies. This means you most likely have a cache of enlightening anecdotes that speak to the peace of mind only life insurance offers, and there's no better way to educate people or start them on the trail of empathy than by relaying a positive experience another client of yours had with life insurance.

When discussing how life insurance saved the day for one of your clients (ideally, a client with a situation similar to that of the individual hearing the story), concentrate on how you were able to provide them with the peace of mind they so desperately needed in a time otherwise filled with grief, anxiety and uncertainty. Do so, and you can serve as a bridge to experience and demonstrate to all of your clients that their peace of mind is what you work hardest to secure.
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