Right now, term life insurance provides an affordable option for millennials and younger-aged clients looking to protect their families just in case some unforeseen circumstance occurs. We are still waiting to see what happens with the pandemic and those concerns have more consumers looking for life insurance products to fit their lifestyle and budget.

With accelerated underwriting and some life insurance products not requiring blood/urine/medical exams, you may want to discuss term life insurance with clients or even the children of your clients. Middle aged clients probably have children at the age where they are planning for changes in their lives such as children or buying a home.

To help you start that sales conversation, AIP Marketing Alliance would like to share more than 12 sales ideas for approaching current clients and/or future prospects about purchasing life insurance.

• Income Replacement: Generally, a need during the working years, this concept is ideally suited to term insurance.
• Final Expense: Though this may be thought of as a lifetime need, many will have some remaining funds in qualified plans to cover costs after retirement. Term insurance may cover the need prior to a significant qualified plan accumulation.
• Mortgage Protection: A common term sale. You can emulate a reducing coverage amount by laddering several term durations together (combine a 30- and a 15-year term, for example).
• Buy-Sell: This concept is typically a short duration need as well. Buy-sell is typically a need during the active working owner years. Term can be an affordable fixed duration solution for a fixed duration need.
• Key-Person: Another business concept that is typically a fixed duration during working years. At a competitive price, a company can establish a level of death benefit protection for themselves against the loss.
• Executive Bonus: Although IUL has conditioned us to think of Executive Bonus as a cash accumulation product, that is certainly not always the case. Many executive bonuses are simply providing the executive a life insurance benefit for their family while they are in the employ of the company. A term policy can provide a valuable benefit at a low cost.
• Covering Loans: Whether it’s a business or a personal loan, it may be prudent or even required to carry life insurance to cover that loan. Match the duration of the policy to the duration of the loan.
• Divorce Settlement: An agreement or resolution may be made where a defined amount of coverages needed for a defined period. Perfect for term insurance.
• Guaranteed Insurability: Because some term is convertible, a term policy can lock down insurability for a new permanent policy or an increase to an existing policy. An increase to an existing policy can be a valuable benefit for guaranteed death benefit coverage changing needs, or even for a cash accumulation focus. It would allow for increasing the death benefit to make room for additional premiums within guidelines and MEC limits.
• College Loan Protection: Think of this from the parent’s point of view. Many parents co-sign for their child’s college loans. That is a significant obligation that can be protected with a term insurance policy on their child’s life.
• Gateway to Permanent Coverage: Although permanent coverage may be a need, many times, funds simply aren’t there to lock in coverage for the full amount needed on a permanent basis. A term policy would allow them to get the coverage they need until they can afford permanent protection.
• Pension Max: Pension max typically uses life insurance on a declining basis to provide values to fund an income stream for a surviving spouse. Term insurance can be a very effective tool in this plan. By covering the first 10 to 20 years of retirement with a combination of term and permanent insurance rather than permanent coverage, the costs may come down considerably and allow for a more compelling pension max solution.
• Stay-at-Home Parents: It’s not just the lost income that can impact a family at an untimely death. It can also be the value of the lost benefits they were providing. Again, term coverage can be an effectively priced way to meet this need.
• Upselling IUL: Upselling IUL isn’t about just raising the death benefit and leaving room for an additional premium. It’s about covering the need. Do they have the coverage to meet all their needs and obligations? Don’t stop at just retirement planning.

If you need some support materials or illustrations, please contact AIPMA’s Business Development team at (800) 783-5206 Press #2 or email marketing@aipma.com.