Most of you have probably heard of the Robert Southey story, Goldilocks and the three bears. If you are not familiar with it, or need a reminder, it's the story of a little girl named Goldilocks.
Goldilocks and the three bears
Goldilocks traveled through the woods and came across an empty house. She knocked and when no one answered, she walked right in. At the table were three bowls of porridge. Goldilocks was hungry, so she sat down to eat them. The first bowl of porridge was too hot, the second was too cold, and the last was just right. Which she happily ate up.
Choosing the right single premium life plan for your clients
Now the reason I bring up Goldilocks in an article about single premium life (SPL) insurance is this… When discussing SPL's with your clients, you must help decide what the right fit is for them. Today's SPL's have evolved. Not only are they great vehicles for wealth transfer, they can also provide an alternative for a client's long-term care (LTC) coverage.
Each carrier has variances on their SPL's that are important to understand, such as:
- Highlighting wealth transfer by way of a higher death benefit but lower LTC coverage
- Offering higher LTC coverage which lowers the death benefit
- Full return of premium
- Lifetime LTC benefits (some that only cover for a certain period)
- Purchasing a lump sum SPL or multiple payments
It is important to recognize what your clients objective and goals are. Sit down with your potential client and fully understand the scope of their situation. With the support of URL, you can help them navigate the "single premium life woods," and avoid making a decision on a policy that is either too much or not enough for their needs, and guaranteeing them that their decision is just right for their specific situation.
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