8 types of clients who need more coverage

dad hugging son
Mind the need gap

There are 106 million under- or uninsured Americans—and many of them are your clients! (1)

Identifying existing clients who are prime candidates for more coverage is key to 
 your ongoing success. Here’s your guide for spotting them early, and how to start 
 a conversation.

No. 1

The love birds (and recently separated).

two birds

It’s no secret that both spouses in a new marriage need protection. And the sooner the better, as the younger you are the less life insurance is likely to cost. But don’t forget, recent divorces can leave ex-spouses and their families in need of updates to coverage, too. It’s often a mandatory requirement by the court and must be maintained indefinitely as part of the agreement.

No. 2

The job changer.

two brief cases

Lately, it feels like everyone is changing jobs or taking a break from working altogether. In fact, more than 
47 million Americans voluntarily left their jobs in 2021. (2) Workers usually can’t take their employer-sponsored coverage with them after leaving. And even if your client started a new job that offers life insurance, workplace coverage is usually insufficient—1x or 2x salary. They may need to re-evaluate their current life insurance needs to ensure their family is still properly protected/covered.

No. 3

The homebuyer.

covered home

It’s most peoples’ single largest investment, and life insurance can protect families by paying off the mortgage so they can remain in their home if the worst happens.


Does your client already have mortgage protection insurance with you?

Talk to them about adding life insurance to their lineup. It’s for your own good, too—multi-line policy sales can help improve retention.


Check out The Definitive Guide to Cross-selling Life Insurance for details on how to cross-sell to your clients.

Mortgage protection insurance protects lenders, not families

With mortgage protection insurance, you’re covered with the exact amount you need to pay off the mortgage. But the carrier sends the mortgage payoff check to the lender, not the client. With regular life insurance, the check goes to their loved ones in the amount they really need as a family for day-to-day expenses.

No. 4

The new parent.

newborn baby

Anyone welcoming a new child into their family needs to reevaluate their life insurance coverage and listed beneficiaries. After all, it costs an estimated $270,000 
to raise a child born in 2022 to adulthood. (3,4) Life insurance can help with the financial load, should the unthinkable happen.


Learn more in Why Stay-at-Home Parents Need
 Life Insurance.


Tip: If your client got married a couple of years ago, reach out to see if their family has grown, giving you an opening to offer some expert advice.

No. 5

The new citizen.

new citizen

If your client recently became a citizen or permanent resident, extend your congratulations and offer to help safeguard everything they’ve worked for with life insurance. With adequate coverage, they can feel content knowing their hard-earned American Dream is protected. And remember, they can list beneficiaries who are non-citizens.

No. 6

The longtime client.

calendar

Most term policies are too expensive to renew when the coverage term expires. But many people reach the end of a term, especially a shorter one, still in need of life insurance protection. If their house isn’t paid off yet, they’re paying tuition for their schooling or a loved one’s, or they’re saving for retirement, you’ll want to suggest they apply for a new policy.

No. 7

The one about to have a birthday.

birthday cake

In the insurance world, some birthdays matter more than others, and your client will appreciate the heads up. Reach out soon after their birthday before an age band jump in price (or eligibility cutoff for rate class or product). You’ll be protecting them from paying more, or having the coverage decision made for them. Explain the benefits of taking action within the six months after they reach these key ages: 34, 49, 54, 59, 64, 68.

No. 8

The business owner.

business shop

Whether a new or seasoned business owner, your client could have family, employees, and business partners that depend on them. As the business grows or changes, you’ll want to suggest that they have policies to alleviate financial concerns for the business, its partners, and their family in the event of their passing.

Sound like your clients?

As a next step, get in touch with them and offer to help reassess their needs based on their unique situation. In some instances, you may be able to use your CRM to identify clients. If you’re already using Ethos, send them a link to your custom Ethos landing page to get a quote and start an application.

Ethos marketing toolkit

Use these tools to market Ethos services to your clients:

  • Email templates
  • Phone scripts
  • Ethos digital advertising toolkit
  • And more available under Resources in the agent portal
pdfs

Important: If you're not licensed, you can't quote, solicit, or sell life insurance. But you can still let clients know you're able to refer or connect them with a trusted life insurance partner. At Ethos, we offer every agent a unique referral URL that can be shared with clients to start an application. Ethos handles quoting and sales, and all policy activations made through this link generate trackable earnings.

Not using Ethos yet?
A digital tool to grow your business
Ethos' 100% online platform can help scale your business, with 95% approvals, zero case study management, and up to $2 million in coverage from top-rated carriers. Enjoy competitive compensation, paid weekly, plus a welcome bonus of $100 per activated policy for the first 30 days.
Designed to keep clients hooked
People think applying for life insurance has to be time consuming, intrusive, and expensive. With Ethos, it takes them 10 minutes or less. Instead of weeks or months of underwriting, they can be approved instantly with just a few health questions and no medical exams.
Easy estate planning, too
Ethos puts you ahead of the pack with estate planning products bundled with all eligible life insurance policies for no additional cost. Clients with applicable policies can create their own binding wills, trusts, and other essentials in as little as 15 minutes-all without an attorney. Use it to drive retention and create added value.