The New Language of Permanent Life Insurance

AXA's truth: Permanent life insurance provides access to your money.

Client's truth: Life insurance means giving up money that I'll probably never see again.

Breaching the mindset gap

The difference between what the industry, or you, say to clients about permanent life insurance versus what they hear and believe is due to what's called the "mindset gap." The distinction between permanent life insurance and term insurance is second nature to you, but not for your clients.

Many savvy investors have never even heard of permanent life insurance. When you begin talking about the problem, then, your clients come to the conversation thinking about what they know: Life insurance is for when they die. It's for protecting their family. It's not about growth – it's a backup plan, not money they would put at risk or use during their lifetime.

They're really starting from square one. It's easy for them to be overwhelmed by this conversation. And if they're confused, they can't hear what you're trying to say.

To get them to listen, you must take their mindset into account. There is a right way – and a wrong way – to start the conversation. Starting it the wrong way can lead to trouble. Keep in mind that the No. 1 goal with life insurance is to protect the family.

You think of permanent life insurance as a multi-purpose financial planning tool. Instead, begin thinking about it the way clients do: protection and more.

A complex product made simpler

Permanent life insurance is counterintuitive. It's called life insurance but, to everyday people, it's actually a complex product that combines insurance with investments. Partly because of this complexity, the way you talk about permanent life is critical to a successful conversation.

Permanent life may be multifaceted, but when you clearly communicate the benefits and talk about permanent life insurance as "protection plus more," many clients will understand how it can be a valuable part of their larger financial plan.

Of course, as your younger clients prepare for their financial future, many focus on whether they will have enough to retire the way they want. Many are also concerned about choosing between enjoying life today or retiring comfortably tomorrow.

Permanent life helps them address these challenges while helping them protect their family. It's protection "plus." The key is in how you explain these dual benefits. With permanent life, clients have the opportunity to do so much more than just protect: They can also minimize their tax bill and grow their money over time for a comfortable retirement or to leave a legacy.

Don't short-change protection

Don't short-change protection. Often, the conversation jumps too quickly to the growth opportunities, but consumers have spoken: They want to hear about protection first. So when you're talking about permanent life with your clients, you should position it as protection for your family — plus so much more.

For more information on adjusting your language to better position permanent life insurance, see the interactive white paper.