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You’re likely familiar with the “three buckets” method of describing household assets. It’s a common analogy. There are three buckets of money – Now, Later and Never.
The Now bucket holds the money a person or household needs to live today. This is how they pay the mortgage or buy cars. The Later bucket is filled with retirement funds. In it you will find 401(k) accounts, Roth IRAs and other retirement funds. When you look in the Never bucket, things get interesting. Those are the funds a person doesn’t need to use to live, or what they need to retire. This is the money they intend to leave to their loved ones or to charity. It’s to transfer wealth and leave a legacy.
The assets inside of Never buckets can often be lazy or underperforming. Low interest savings accounts and CDs don’t provide as much of a legacy for those whom the money is intended. Introducing your client to single-premium life insurance can make the most of those funds and enhance their legacy.
Single-premium life can be a solid solution, regardless of how much is in their Never bucket. At a minimum, a client could consider a $10,000 final expense policy. That’s a sure way to know their loved ones will not be burdened with funeral expenses, outstanding debts or medical expenses.
For those with more assets in that bucket, say $150,000 or more, single-premium life is also a useful tool. Why? For starters, their legacy is enhanced immediately. Through the power of life insurance, the death benefit dramatically increases what they can leave to others, depending on their age, health and other variables. Life insurance can also be a useful asset, with benefits to help protect the value of their estate.
If you’re unfamiliar with how to offer single-premium life solutions, Senior Market Sales can help. You can watch our recent webinar event on how to earn more with single-premium life. Call us, and we’ll send you the Single-Premium Solutions Life Insurance Planning Kit. The kit provides details on the advantages of single-premium life, helps connect you to the top life insurance carriers, and provides planning concepts. Best of all, it can show you how to position single-premium life and start conversations now.
Single-premium life can help clients make the most of their Never bucket of money. Call the SMS Life team at 1-877-888-0166 to request your planning kit today.