Customers can never be too confident

How would these bills be paid? What about child care? What about college? Inflation has made everything more expensive and interest rates are still low.

Have you discussed with your clients the possibility of paying a larger death benefit?

If clients or families needed to replace a breadwinner’s income, how much money would it take to put into an annuity to replace that income stream?

4. Estates

Some people wonder if the inheritance tax exemption will be lowered in the near future. Federal estate tax on amounts beyond the exemption ranges from 18% to 40%.

Should your clients have additional life insurance benefits that beneficiaries can use to pay inheritance tax?

5. Collections and Equipment

We once made fun of people who collected things like lunch boxes, comic books, and baseball cards. Then the collections started to be worth some serious money.

Your client has insurance for the contents of their home. Do they need additional insurance for a detailed, photographed list of collectibles?

And what about their tools and computers?

6. Reasons

There are many ways donors can support a local nonprofit that they believe is making a real difference. Naming a charity as the beneficiary of a life insurance policy is one course of action, but there are others. Have your clients considered purchasing a new life insurance policy and naming the charity as owner and beneficiary?

Explain that the charity is responsible for paying the premiums, but in reality the customer writes checks to the charity for the same amount and takes tax deductions for those contributions.

The charity receives a lump sum upon the death of the donor. If the donor lives a very, very long life, the policy will increase the monetary value along the way.

In short, insurance is not something you buy once and forget. It’s a part of their financial strategy that requires periodic attention.

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