Life Insurance Isn’t Just for Dying

Living and breathing life insurance as we at First American Insurance Underwriters do, it is easy to forget the assumptions that most people have—that life insurance is only used when you die, and the only people who benefit are the family you leave behind.

While providing for loved ones is a powerful and important motivator for clients, this narrow view overlooks the living benefits that life insurance products provide. If we do not highlight the living benefits of life insurance, recognizing that our clients and prospects think it just provides a death benefit, we miss an opportunity to serve them.

Chronic Illness and Long-Term Care riders on these modern Life Insurance contracts are a vital resource for people in need of assistance with daily living, mobility issues, and mental disorders. A well-designed policy can provide hundreds of thousands of dollars to cover essential costs and still leave a substantial residual death benefit. A well-designed life insurance policy can be adjusted for inflation—a topic that is top of mind for many Americans right now.

Cash Value Life insurance, especially Whole Life and Accumulation Universal Life products are designed specifically with the living in mind. The tax-advantaged cash value in the policy helps accomplish future goals. Life Insurance products like Indexed Universal Life policies, grow by utilizing hedging strategies that allow you to participate in market uptrends while minimizing or eliminating the downtrends. This year’s market volatility highlights the advantage of downside protection. People who are less risk averse or are experienced in investing and desire tax-advantaged full equity market participation can choose variable life insurance. This product offers many sub-accounts that allow you to participate in the market. The First American team can guide you as to the most appropriate solution for your client.

Flexibility and choice are the names of the game. When speaking with clients, show them how life insurance fits into their overall planning, whether their goal is related to long-term healthcare, supplemental retirement planning and beating inflation, or simply providing for their families. Life insurance is not just for dying anymore.


— By Tony O’Kussick, Director of Operations