Frequently Asked Questions about Life Insurance Beneficiaries

By Scott Purves
InsuranceNewsNet

One of the top priorities for any insurance agency is gaining the trust of potential and existing customers. Aside from offering various coverage options, customers also expect you to be able to give them quality advice, minus the sales pitch, making you more of an advisor than salesperson. In the end, isn’t this the image you want your clients to have?

Building personal relationships with clients is just as crucial as the next sale, and one way to do this is to have all the information they need so you can fully answer all of their questions. Because there are so many variables in every policy, it’s necessary that your staff has as the requisite expertise.

Life insurance has begun to take on a life of its own among the public; many are confused as to what it does and does not cover as well as whether or not it is even worth it in the end. Also, many may ask you questions regarding beneficiaries for their policy.

The beneficiary aspect can often be the most asked about, so consider the following six frequently asked questions you may run into:

1. Do I have to designate a beneficiary?
2. What if I have a will? Do I still need a beneficiary?
3. Whom can I name as a beneficiary?
4. Can my estate be my beneficiary?
5. Can my spouse?
6. What about trusts?

These are the most common questions you may see regarding life insurance, so make sure you have these questions and responses down completely. Your role as an insurance agent is to make a sale and provide information, but you won’t be closing many deals if you can’t answer simple questions. Make sure your staff is trained on all coverage policies you offer to avoid losing any credibility among potential clients.

Scott Purves, CIC, is the President of Purves & Associates Insurance Agency. Scott focuses on group benefits for businesses including group medical, vision, disability and life insurance in California. He has served on the Board of Directors of the Sacramento Health Underwriters Association and is currently serving on the boards of the Insurance Brokers & Agents of Sacramento and the Davis Downtown Business Association.

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