One objection agents may get when they are selling life insurance is “I don’t need it.”

Most often, that’s entirely untrue and they don’t realize the financial burden they’ll leave their family with if they should pass away. Especially if they’re the breadwinner and they die early.

However, if your prospect is extremely wealthy and has a nest egg, it may not make sense to pitch life insurance in the traditional manner.

If that’s the case, here are more reasons for purchasing life insurance they may not have thought about.

Selling life insurance a different way

As stated in many articles, Baby Boomers are far and away the wealthiest generation in American history. However, a sizable portion of them — about 42 percent — have failed to prepare an estate plan. This is where an agent can help them by selling life insurance as an estate planning tool.

Need some ideas? Here are some of the most common we’ve found:

  • Estate planning for grandkids — Grandparents can create a form of a life insurance trust to benefit their grandchildren.
  • Starting a business — Cash value from a whole life insurance can give returns of three or four percent, which can build a nice amount to borrow from as money to start a business.
  • Pay for college — Same idea as #2. Money borrowed from a whole life policy has a lot of uses. The money doesn’t have to be repaid; the benefits are reduced by outstanding loan balance and the loan isn’t taxed as an income tax. Unless you are a multi-millionaire subject to estate tax.
  • Charitable donation — Giving the death benefit to a charity can provide benefits for both the charity and the estate. A charitable gift helps reduce the size of an estate tax bill.

Make sure it’s the right fit

Unless you enjoy chargebacks and angry clients, be sure the policy makes sense to your client. Double-check your needs analysis. Go through their estate plan goals.

Life insurance is a great idea to provide liquidity to meet the needs of your prospects with large estates and something for boomers to consider for their estate plans.

But, if you’re worried about selling life insurance first and taking care of people second, you’ll eventually run into problems.

Ready to pitch some insurance leads the idea of life insurance whether it be in the traditional sense or estate-planning sense? Selling life insurance is easier when the client is actively looking for it.