If you’re interested in exploring the possibilities of insurance career opportunities, you should have a general understanding of how life insurance payouts work. Most already know that when the policy-owner passes, payouts are sent to the beneficiary. At the surface level, life insurance works similarly to homeowners or auto insurance. The main difference between life insurance and these other common types of insurance is that some policies allow you to accumulate cash value on the policy. This is broken up by Term Life Insurance and Whole Life Insurance.
When inquiring for Insurance Career Opportunities, you should know that term life insurance provides coverage only for a set period, generally within the time frame of one and 30 years. Your policy will be paid out if you pass away during the covered term. This is the most like other forms of life insurance because the payout only happens after you die, and you earn no cash value. With whole life insurance, this is the most common type of policy. This policy will be active for as long as you’re alive, and cash value builds up while you’re alive also. Since you have cash value on this policy, you can borrow or withdraw funds for personal use. The downside is this will lower your death benefit.
Life insurance career opportunities involve having to thoroughly understand why people inquire about life insurance and the different scenarios that may impact families. Firstly, life insurance gives family members peace of mind. Your payout can pay for final expenses, which can include funeral costs and outstanding debts. Life insurance can prevent other family members from inheriting debts that they had while they were alive. There are very few scenarios where life insurance is not necessary, but there are a variety of reasons someone would inquire about a policy. Some reasons include having dependents that rely on you for survival, being the sole breadwinner of the home, being a stay-at-home parent, or being the primary caregiver for a parent or relative.
Before investigating your life insurance career opportunities, you should know the basics of everything above. As a client, it’s always suggested for them to work with a financial planner to determine how much they need to be covered and what they can afford. As an agent, it’s your responsibility to know this information anyway, just in case they opt to skip that step. The more relatable you appear to your clients, the more successful you will be in your life insurance career.