With today’s volatile markets, clients are increasingly anxious about having control of their money and easy access to cash. Our industry’s traditional product, participating whole life insurance, can be the right solution to address their concerns, providing living benefits for today and death benefit protection for the future.

Living benefits can include:

• Borrowing without a credit check.
• Loan repayment flexibility.
• Loan interest rates that are lower than the market.
• Ability to access capital for any reason — pay off debt, build wealth through other investments, or fund major expenses such as college, home renovations or even a vacation.
• Ability to cover large expenses while avoiding high-interest credit card debt.
• Strong guarantees that whole life is known for.

If you have clients with families to protect and funds that can be repositioned, now is the right time to have the whole life insurance conversation. The more uncertainty around us, the more important it is to provide flexible options offering security and protection.

Let’s look at a case study:

Sam and Maria are both 35 and have two grade-school-aged children. Although they have made good financial plans, they are still concerned about protecting their family should either of them die prematurely. Additionally, they are looking for multiple ways to diversify their overall portfolio and would like to own rentable real estate. And like all growing families, they want to maximize their hard-earned money and manage cash flow without interruption — all while preparing for life’s planned and unplanned financial situations.

As a result, their advisor recommended a whole life insurance policy with a $10,000 annual premium. This provides the ongoing protection needed and provides the family with cash flexibility. In Year 5 of the policy, they will have enough cash value to take a $30,000 policy loan to invest in rental income property. They will make loan repayments of $6,150 annually starting in year six and can continue taking loans every seven years thereafter for family vacations, college tuition and property maintenance. Meanwhile, the policy’s death benefit and cash value continue to grow tax deferred, to more than $600,000 and $280,000 respectively, in Year 25.