Having a retirement plan is crucial to preparing for your non-working years. As an insurance agent, you can help your clients be ready for their retirement whether they’re five or thirty-five years away from retirement day. As a Symmetry agent , you have access to insurance solutions that can help your clients build a future where they can protect their finances and enjoy their legacy.
When it comes to saving for retirement there are several insurance solutions that can put your clients in the best possible position for their future. Whether it’s a permanent life insurance policy that comes with a cash value they can borrow from, an annuity that helps them build wealth or disability insurance that can help them avoid financial burdens that might prevent them from achieving their financial goals, you can provide a solution that fits their budget.
Here we will break down some insurance products that can zero in on your clients’ retirement needs and protect their financial goals.
Permanent life insurance is a great solution for clients hoping to save for retirement. A permanent life insurance policy is one your client will have for life. The peace of mind that comes with permanent life insurance is unique to this type of coverage; While other policies might protect your client for a phase of their life (new home, first child), a permanent life insurance policy would provide them with coverage that never ends.
Specifically, an Indexed Universal Life (IUL) policy is permanent life insurance that comes with a cash value savings component. This gives your clients the ability to invest in their future with their insurance policy.
The
cash value
of your client’s permanent life insurance policy will be a huge benefit toward any retirement goals they have.
The cash value component of a permanent life insurance policy will grow in interest over the years and can be borrowed against by the policyholder.
The cash value does not replace any death benefit, but it can be borrowed from while the policy is in force. To that end, it’s important
that your client understands the purpose of this type of insurance and how they want to use those funds. Once the cash value has grown to a designated amount, your client can begin making partial withdrawals, surrender the policy for the full amount or take out a loan against the cash value. By drawing from the cash value, they will be affecting the amount of their death benefit, which is why it’s important that they understand the purpose of their policy’s cash value. Since insurance policies tend to have lower interest rates than most banks, your client is likely to save money with this option.
Regardless of how your client decides to use that cash value, it’s a viable option for them when planning for retirement.
Term life policies are the bread and butter for a lot of insurance agents, especially for clients who are preparing for retirement. With a term life policy, your client gets to choose a term (10, 20 or 30 years, etc.) that they want to cover. They might decide to use a term life policy to help pay for their mortgage (known as mortgage protection), cover a child into their college years or even protect themselves during retirement years. Term life insurance is a better option for younger clients. As they get older (and closer to retirement) the harder it will be to qualify them for coverage.
Term life insurance policies are typically much cheaper than a permanent life policy. With that in mind, your clients can opt for term life if they want to put more money toward a retirement fund. What’s more, some riders can be added to a term life policy that will make that choice even more appealing.
A valuable policy rider for your clients is the return of premium add-on. A return of premium rider can be added to your client’s term life policy. Effectively, this add-on would allow your client to receive the sum of their premium payments if they survived the term of their policy. This rider is a huge benefit for anyone hoping to save more for retirement. While the initial cost of this rider is admittedly more expensive, the payoff is that your clients could be reimbursed for all the payments they made over the course of their coverage.
It might be a gamble, but clients who are hoping to recoup the cost of term life coverage will see this as a valuable opportunity.
Annuities are a great example of an insurance product geared toward retirement needs. With one in place, your clients can create a passive income for themselves that can be used in retirement years in addition to any 401(k) or IRA they might already have.
An annuity would work like any other insurance policy. Your client will secure the annuity by paying premiums (with the choice of one lump sum or monthly payments). During that time, your client’s annuity would accumulate, tax-free. Once they’re ready, they can begin to draw from the annuity using a set schedule. They can choose between monthly, yearly or even be paid out in one lump sum.
This option would set itself apart from traditional methods of retirement savings plans. Your client would be able to choose how to make payments and when and how they can start withdrawing money. There is no designated age (like you might find in a 401(k) or IRA), so your client can customize their annuity to better match their retirement goals.
Disability insurance is another option you can offer your clients in preparation for retirement. Often, disabilities can create financial burdens that prevent your clients from achieving their retirement goals. Between medical expenses and potential loss of income, it’s important to plan for the worst with a policy designed to cover disabilities. This type of life insurance will protect your clients if they experience a disability that takes them out of work and disrupts their income.
Disability insurance is ideal since it covers a wide range of ailments that your client might experience.
Whether they’re facing a short-term injury like a broken leg or a sudden illness that might take them out of work for months, having disability insurance will have them prepared for everything.
No one is immune from accidents or illness and having disability coverage will mean your clients won’t have to draw from retirement savings to pay for whatever the future might throw at them.
As an insurance agent, it’s good to have a complete understanding of your clients’ needs through every step of their lives. When it comes to retirement needs , there are several solutions you can provide to help your clients prepare for their financial goals. Whether that’s a cash value that helps them accumulate passive wealth or disability insurance that protects them from financial burdens caused by an accident or illness, you can help your clients get the most out of their retirement.
Symmetry Financial Group agents have access to high-quality life insurance, disability income insurance, critical illness insurance, and annuity products from more than 30 well-known insurance companies. This gives you the flexibility and reach you need to tailor plans to meet clients' individual coverage needs.
To learn more about how to begin a fulfilling career as a life insurance agent, contact us today.
