Everywhere, people are cutting back: no more daily Starbucks fixes, frozen entrees for dinner instead of eating out, and lots of movie rentals. Major discount retailers are touting their products as the new way to live well on less by doing everything yourself, from dog grooming to manicures. 
Will the trend toward cutting costs impact how people look at life insurance? In many cases, yes.
Knowing that, advisors can focus on helping clients obtain the best coverage for the circumstances at the best price–whether the client is making a first-time purchase or reviewing current coverage.
There is nothing new about that; professional advisors routinely present the best value proposition for the need. However, given the extreme cost consciousness that now prevails, advisors may want to consider taking a few approaches they might not have considered in the past. Following are some examples.
For younger clients, one idea is to avoid adding riders that add quite a bit to the premium but may not be necessary for the circumstances.
An example is the waiver of premium for disability. This rider can add quite a bit to the annual life insurance premium. In one case, of the $300 annual premium, $100 was going towards the rider. The client had employer-provided disability insurance and decided that, by removing the rider, he could definitely afford the $200 annual premium on his life insurance, even if he were to become disabled.
For younger people purchasing term life and older clients who have existing policies with premiums that are about to increase, advisors can focus on getting a better rating for the client. 
