Many insurance companies are changing and enhancing life products aimed at the employee benefits market right now.
This creates new opportunities for advisers and clients to discuss both what they have in place and any improvements they can make to offer an even more robust benefits package to employees.
We know life insurance conversations can be tough to have with employees, but often times, hesitation regarding broaching this topic stems from misperceptions. Below are three common misconceptions that advisers can address with clients to help ensure employees(and individual clients) have the protection they need.
1. 'It is too expensive.'
According to the 2016 LIMRA Insurance Barometer study, the No. 1 reason given by 64% of respondents for not purchasing some or more life insurance is the belief that it's too expensive. To help reverse this misconception, advisers can show clients there are a variety of term and permanent plans available to suit various needs and lifestyles.
For example, term life insurance offers protection at a more affordable price for a fixed set of time. Advisers can explain that this option is typically purchased to help protect dependents if the insured passes away prematurely during higher-need financial years. Plans with multiple term options allow employees to purchase protection that meets their needs without emptying their wallets.
2. 'I have other financial priorities right now.'
Surprisingly, 59% of respondents in the LIMRA study also listed other financial priorities as a reason for avoiding life insurance. This gives advisers an opportunity to highlight life insurance as one of the most important financial priorities for employees to consider. Many people may not know that the average mortgage balance in the U.S. is $157,154, and in some regions, it can jump up to more than $250,000.
