While agents are increasingly focusing on the living benefits of life insurance for their clients, sometimes it pays to know why it became so important to buy in the first place. ProducersWeb offers a brief history about the main reasons people have purchased a plan over the years.
According to the website, the initial reason revolved around paying for a funeral when a person passes away. However, because medical tests are often involved when an elderly individual is in failing health, life insurance was also sought to pay for doctor's bills and ambulance charges.
By the 1950s, ProducersWeb says life insurance became an important tool for people who wanted to establish a fund, or an estate, for their loved ones.
Today, the source states more people are purchasing life insurance to take advantage of accelerated death benefits, which gives policyholders' family members the money they need to pay for medical costs before the death occurs.
Sometimes, life insurance leads may be unfamiliar with the intricacies and history of life insurance. Being aware of how it's evolved over the years helps agents show the expertise insurance leads are often looking for before they buy.