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Why your clients still need life insurance even if they have no dependants



The article below was supplied by 2018 FIA partner FMI. The views expressed in this article are not necessarily those of the FIA.

Let’s be honest, millennials generally don’t consider getting life insurance to be a priority. You probably hear the reasons “I’m too young for life cover”, “I can’t afford it” and “I have no dependants” from millennials too often. The common misconception is that life insurance is only about covering death and permanent disability, but there are products available that do much more than that.

As a financial adviser, you get to help your clients understand the usually complex message of life insurance. Not only do your clients rely on you to help them secure their financial future, they also look to you for advice regarding the options available to them for effective financial planning.

At FMI, we’re committed to partnering with Financial Advisers to give your clients the best solutions for life insurance so they can go out and live their best lives. We have a unique set of income benefits that match your clients’ monthly income and are ideally suited to pay for monthly expenses like groceries, electricity and education. Lump sum benefits, on the other hand, are perfect to allow for any once-off expenses like estate duty and to settle large debts. We believe the best way your clients can protect their monthly income is with a combination of these.

Consider the consequences if your clients’ monthly income were to stop because they got sick or were in an accident. How would they be able to take care of themselves and pay the bills? Statistics show that 7 out of 10 people will have at least one injury or illness that will prevent them from earning an income before the age of 65 (FMI claims stats report 2016). This means that your clients are more likely to experience a temporary disability during their working career than they think.

Furthermore, someone in their twenties has an 85% chance of having a temporary injury or illness that would stop them from working for at least two weeks during their career, compared to a 25% chance of developing a critical illness and a 9% chance of passing away. For these reasons, it’s important that your clients get life insurance, and even more important that they get the right cover.

That’s why our flagship product – FMI Individual – pays your clients their monthly income if they can’t do their job due to an accident, illness, injury or even death. This belief is core to everything we do at FMI.

Take Damian for example. He’ s a 28-year-old business-owner who fractured his knee in an accident and was unable to work for six months. Thankfully, he had an FMI policy in place and was able to employ 2 people to keep his business going while he was recuperating. Since his claim, his business has grown from strength to strength and he now employs 3 full-time staff. Had he not had the cover, he would have incurred a significant amount of financial debt.

While millennials may have unlimited access to information and a wide span of knowledge, they still need the help of Financial Advisers to help simplify life insurance and rectify the common misconceptions they may have about it. As a Financial Adviser, you have the task of helping your clients choose the right life cover and highlighting to them the importance of protecting their monthly income so they can continue to provide for themselves, no matter what happens. We’d love to partner with you in helping your clients live their best lives.

If you’d like to inquire about our products, feel free to contact our Sales team on 0860 10 52 08 or email sales@fmi.co.za.