Common Misconceptions about Life Insurance–Naples Insurance School

Many people don’t realize that life insurance can be one of the best financial purchases they make.

Life insurance offers a level financial and emotional security that many other investments can’t touch.

Yet many people still don’t get life insurance. If you have a better understanding of why your clients hesitate to make this important purchase, you’ll be better equipped to help quell their objections.

common misconceptions about life insurance

The death benefits that life insurance pays out can be one of the most important tools a family has to cover funeral and other end of life expenses.

Although these one-time expenses may be one of the smaller benefits of life insurance, yet covering funeral and burial costs is one of the main reasons Americans purchase life insurance.

Even clients who see life insurance as a means to leave inheritance for their children or as a way to supplement income in retirement may not appreciate the potential of life insurance.

Clients might be deterred by what they view as relatively low yields for life insurance compared to other potential investments.

One of the most commonly cited reasons why people don’t buy life insurance is that they have other investment priorities.

Therefore, it’s important for you to adequately educate your clients about your life insurance products’ benefits. For example, that life insurance can help take care of their family in the future by compensating for the lost income after passing.

It may be that clients simply don’t want to impact their monthly expenses.

If you let them know about potential premium financing, they may be able to finance their life insurance premiums without taking a significant hit on their liquid capital.

This is an especially important option for clients who may want invest their money in other asset classes.

With a better understanding of your clients’ thought process, you may be able to better assuage their nerves when considering an investment in life insurance.

About Larson Educational Services:

Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online. We are an approved Florida Real Estate School (License #ZH1002299), Florida CAM School (License #PRE31), Florida Insurance School (License # 370501) and NMLS Approved Course Provider.

Larson Educational Services

13040 Livingston Rd. #12,

Naples, Florida



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