Whole Life Insurance
What does it mean
Whole Life Insurance (or Universal Life) is a term used to describe life insurance products that include MORE than just the death benefit of life insurance. Many times Whole Life includes the normal death benefit plus some sort of savings feature. There are many variations of whole life, but ultimately think of whole life as any insurance where there is MORE than just a death benefit paid during a specific period of time.
Why does it matter
Understanding a borrower’s life insurance plan is important to a banker for a couple reasons:
- If the borrower were to die, would there be an interruption to the business? If so, life insurance can be an alternative way to pay back the loans.
- If the borrower were to die, would there be an interruption to future income for their spouse/kids? If so, life insurance proceeds can be used (and ultimately invested) in order to generate enough income to replace what income is lost. Being able to point out this risk shows your customer you have their best interests at heart.
Other Relevant Terms
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A bit about me
Greetings! I'm Clay Sharkey, and there is nothing I like more than assisting others in achieving their goals. I firmly believe that by enhancing a banker's understanding of their customer's' business, they can provide superior service. This superior service, in turn, leads to stronger relationships for the bank, improved performance for the businesses, and better experiences for our communities. Win-win-win.
