Asset Conservation Using Disability Insurance

When selling life insurance, many producers may use the pitch that one excellent reason to purchase life insurance is for asset protection. The concern, of course, is that upon death there are numerous financial obligations that must be resolved, ranging from estate taxes to financial dependency for the surviving family members. The funds from the life insurance are there so that family assets which had been built over time do not have to be liquidated.

The same concern exists for the possibility of an income earner becoming unable to work due to illness or injury. When a disability strikes, income drops while expenses increase, which may call for the need to liquidate assets to keep from going bankrupt.

Businesses also need asset conservation. Most producers have recognized the need for life insurance to fund a buy/sell agreement or replace the business loss of a key person, for the primary reason of preventing a company from having to liquidate assets. There are a multitude of other business asset conservation insurance uses.

It is important to remember that a disability can financially devastate an individual’s family or a business just as much as a premature death, if not more. Make disability insurance sales part of your pitch for asset conservation.

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