Life insurance is a win-win situation

By Steve Kobrin

The Firm of Steven H. Kobrin, LUTCF


Some people look at term life insurance as though they are gambling in a casino that has stacked the deck against them. They see the purchase of term coverage as a lose-lose situation. Some consumers think the following:
  • If I live, then I lose all the money I paid in premiums.
  • If I die, then I can't enjoy the financial benefit.
  • Either way, I lose.
This point of view leads some people to postpone obtaining a policy -- often indefinitely. And this is unfortunate. They are depriving their family members of a needed benefit based upon a flawed understanding of life insurance, itself.

By contrast, many people hold a much healthier perspective; one in which term insurance is clearly seen as a win-win situation. The key is an accurate understanding of life insurance. Namely, the purchase of a life insurance policy on your own life is an act of selfless love.

Who pays the premium? Your client. Who gets the benefit? Not your client.

A consumer's beneficiaries get the money. They also get the message that your client loved and cared for them, and thought enough of them to plan and provide for their future -- even if he or she can't share it with them.

When the surviving spouse and children receive a life insurance benefit, they are often overwhelmed by emotion. The full impact of the love felt for them by their lost one becomes very real. The awareness is quite powerful, and will likely result in the following thought process:
  • If I live, then I can take care of my family myself.
  • If I die, then I can take care of my family myself.
  • Either way, I win.
Now, that is a bet worth taking.

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