Loss of Income... longevity. Let's face it, as we get older, the size of the "pile" of our money is less important when compared to the income it will produce and the length of time it will continue. Sometimes, with age, we regress. Early on, we wanted to know "what is the monthly payment for that car, house etc.” Now we want to know what the monthly income I can derive from my nest egg is.
Loss of life... yep, really important. We all know that in the case of a married couple, the smaller social security check will go away at the death of a spouse. That will cause a problem. Maybe a life insurance policy will help ease the pain. And, what about additional life coverage to pay for the final expenses?
Loss in the Portfolio... Sure, when we were all young and dollar cost averaging, a market downturn could be viewed as an opportunity. But, what about if you are nearing or in retirement? I don't think so.
Loss of independence... The inability to do the activities of daily living. Wow... this is a big one. My mom is in an assisted living community and it is expensive. Could it be time to present a long term care solution? Maybe a life or annuity that has accelerated or enhanced benefits if your client is not able to perform 2 of the 6 activities of daily living?
Legacy planning... sure, we want to pass on what we have learned, and maybe a little bit of what we have earned. Remember, life insurance goes directly to the named beneficiary, bypasses probate and is free of federal income tax. Maybe it’s time to rollover unneeded assets for income into a Single Premium Life policy with enhanced benefits.
I know that you are all aware of the big "L" issues. But, is your client?
Until next time… good selling!
Raymond J. Ohlson, CLU, CRC, LACP
President and CEO of The Ohlson Group