For over seven years I have been a financial professional in the financial industry. As a licensed investment advisor, I’ve heard the stories and reasoning why people choose to wait to invest their money. Then, it becomes my job to educate them on the benefits of investing despite the recession, high unemployment, high student loan debt, national debt, political policies, and etc. It can be an obstacle, but my trick is educate without sounding like I’m educating them and involving them in the process without telling them I’m involving them in the process. The same thing goes with my professional speaking from financial literacy in the workplace to colleges and universities to other organizations. The same holds true with life insurance. As important as people are involved with health care insurance and its reform, individuals and families should be as involved with life insurance.

Far too many individuals are uninsured or underinsured. Normally at this point of my writing, I would insert statistical information supporting my argument. But that wouldn’t have worked for you to prove the importance of life insurance. People are not motivated by numbers only–stories sell, facts tell. If all I did was state the facts, well, it wouldn’t have worked for “the family” I helped years ago in the beginning of my career.

The Family

Speaking to the husband about the type of insurance policy that would benefit his family needs, we discussed the Equity Index Universal Life (EIUL)policy and adding two insurance riders for his two children–a newborn and his six year old son. And, his wife would be the beneficiary.

In my professional opinion, the EIUL doubles as life insurance (technically it is a life insurance policy) and a vehicle to supplement his retirement. The cash value in this policy is tied to the performance of the S & P 500 Index. If my memory serves me correctly, the lowest rate he would receive was 3% (guaranteed) and a cap of 12%. Based on the index (and the companies calculation with the performance of the index), he would mirror the returns. His money was never invested in the index, it only mirrored the returns with a cap of 12%. If he were entitled to 8%, he would receive it based on the index performance. If the index performed negatively, he would receive the guarantee of 3%.