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Capital Transfer

Using Permanent Life Insurance For Your Client’s Smart Money

To get started with this sales concept, we first need to define smart money. Smart money is money your clients want to control and be able to access during times of need.

While there are several places to “store” smart money, one option that may be overlooked is life insurance. Permanent life insurance can immediately leverage a single premium into a larger death benefit.

The value of life insurance may be immediately recognized as a benefit for heirs. However, access to cash surrender value may be a concern. The smart money concept is an opportunity for you to show your clients the value of death benefit protection along with the potential to build cash value growth while preserving access to as much cash value as possible.

Be sure to conduct a thorough needs-based analysis to determine if death-benefit coverage is necessary before proceeding.

Who Can Benefit?

Several of your clients may have funds that are no longer meeting their current needs. These funds may be in savings, annuities, Certificates of Deposit (CDs), or other vehicles. Each of these vehicles serves a purpose, so the critical question to ask is whether your clients’ needs have changed. Additionally, it’s important to remember that removing funds from a CD or annuity may result in penalties, surrender charges, or income taxes.

While your clients’ goals for these funds may be for long-term growth to benefit their families, the funds also represent important assets for an emergency or other liquid need. The current interest rates on these vehicles may be unimpressive, but ultimately being able to access the funds wins out.

Along with the options noted above, another one to consider is permanent life insurance. If you have clients seeking death benefit protection, the smart money concept using life insurance is a competitive solution. With permanent life insurance, your clients still hold two key benefits: the opportunity for cash value growth and access to the funds in case of emergency.

For help setting up a Social Security Strategy, call us at 919-488-3686 or email