RISK 1

Death Risk

There is a risk to your clients’ financial policy that is hidden in plain sight because it’s wrapped around a subject no one wants to think about – death.

Life insurance is unique for its ability to provide cash at the time that it might be needed most – when income is interrupted due to death.

Life insurance can provide needed cash, so that beneficiaries can take their time to sell non-liquid assets such as a business or real estate. On the other hand, it can also help prevent the forced sale of assets and help pass those assets down to the next generation.

In the event of a death, a death benefit can be used to help:

  • Provide financial help in time of need
  • Supplement retirement income, generally tax free
  • Pay off credit cards, student loans, and other debts
  • Pay off mortgage or pay down mortgage
  • Fund college

Key Point

Death is an inescapable risk that we will all experience one day.
However, it is one of the only risks that life insurance can directly address.