If you’re a Medicare agent looking to expand your portfolio or a life insurance agent seeking to offer more robust products, whole life insurance is a perfect addition to your toolkit. Offering your clients more comprehensive options can set you apart from others.
What is Whole Life Insurance?
Whole life insurance is a permanent life insurance policy that provides coverage for the entirety of a client’s life as long as premiums are paid. Unlike term life insurance, which expires after a set period, whole life insurance guarantees a payout to the beneficiaries whenever the policyholder passes away. Additionally, whole-life policies can accumulate cash value over time, which the policyholder can use for other financial needs.
Whole life insurance is often the best choice for clients who want lifelong protection and the added benefit of accumulating cash value. This type of policy appeals to individuals who wish to leave a legacy, ensure their families are financially secure, or want the peace of mind that comes with knowing they’re covered for life.
Why Offer Whole Life Insurance?
Lifelong Coverage for Clients
Whole life insurance is one of the most comprehensive insurance products you can offer. Clients who are planning for the long term, whether for estate planning or to ensure they leave an inheritance, find whole-life policies especially valuable. By offering whole life insurance, you can meet clients' needs beyond temporary protection (link to term life blog)—something that will last a lifetime. For Medicare agents, adding whole life insurance to your portfolio means you can continue serving your client's needs as they age and build stronger, lifelong relationships.
Cash Value and Financial Flexibility
One key feature of whole life insurance is the accumulation of cash value. As clients pay into their policies over the years, part of the premium goes toward building a cash reserve. This cash value grows tax-deferred, meaning it's not subject to taxes as it accumulates. Clients can borrow against this cash value for many reasons, such as paying off debts, covering medical expenses, or even supplementing retirement income. Unlike a loan from a bank, there are no credit checks or approval processes—clients can borrow from their policy. This flexibility makes whole life insurance a compelling option for clients seeking more than a death benefit.
Consistent Premiums and Guaranteed Payouts
Whole life insurance offers consistent premiums and a guaranteed payout, which means clients know exactly what to expect. The premiums stay the same for the duration of the policy, and the death benefit is guaranteed (remember, they have to keep paying those premiums!) This level of certainty is especially appealing to clients who want to avoid rising costs as they age. For you, as an agent, offering a product with predictable pricing and guaranteed benefits allows you to build trust with your clients. Whole life insurance policies are reliable products that demonstrate your commitment to their long-term financial security.
Integrating Whole Life Insurance Into Your Medicare Sales Business
For agents already offering Medicare products, whole life insurance can seamlessly integrate into your business. The key is to recognize the complementary nature of these products. Medicare clients are often in their retirement years. They may be thinking about estate planning, final expenses, or leaving a financial legacy for their families. Whole life insurance meets these needs, making it an easy addition to your portfolio.
As a Medicare agent, you’re already accustomed to helping clients navigate complex decisions about their health coverage. Offering whole life insurance is a natural extension of these conversations. You can introduce whole life insurance when discussing clients’ overall retirement strategy. By presenting it as part of a broader financial planning service, you’ll position yourself as a trusted advisor, helping clients secure their health and financial future.
The integration of life insurance also allows you to engage with younger family members, such as children or grandchildren of your Medicare clients. These conversations can lead to new client relationships and help you grow your business by tapping into different generations.
Overcoming Objections to Whole Life Insurance
Whole life insurance can seem complex to clients, and some may be hesitant to commit to lifelong coverage with higher premiums than term life. However, positioning whole life insurance as an investment in their family’s future can help overcome these objections.
Approach with a Soft-Sell Strategy: When introducing whole life insurance, emphasize its lifelong value. Rather than focusing on the cost, you can highlight the peace of mind it offers by ensuring their loved ones are financially secure no matter when they pass away. You might say, “Whole life insurance is not just for today but for the rest of your life. It’s about protecting your family’s future and building a financial asset you can use.”
Emphasize Protection and Value: Many clients might shy away from whole life insurance due to the higher premiums compared to term life insurance. You can address this by explaining the dual benefits of lifelong coverage and cash value accumulation. Help them see it as a death benefit and a financial asset that grows with time and offers them options while they are alive.
Whole Life Insurance Pay Structure for Agents
Many agents wonder about the commission structure for whole life insurance. Like term life insurance, agents typically earn higher commissions in the first year of the policy. The difference with whole life insurance is that the premiums are often higher, resulting in larger initial commissions. Additionally, whole life insurance policies offer renewal commissions in subsequent years, providing you with a steady income stream as long as your clients maintain their policies.
Since whole-life policies are permanent, they don’t expire, meaning you can foster long-term relationships with your clients. These relationships can lead to repeat business, referrals, and opportunities to offer additional products.
At NCC, we ensure agents retain 100% of their commission while offering robust backend support to help you navigate the complexities of whole-life policies and provide your clients with the best service possible.
Growing Your Business With NCC
At National Contracting Center (NCC), as an independently owned FMO, we understand the unique challenges of offering life insurance alongside Medicare products. That’s why we deliver what we promise by providing dedicated insurance agent support resources, ensuring every agent has the tools and guidance to confidently integrate life insurance into their portfolio. At NCC, everyone is a student, and everyone is a teacher—our collaborative approach fosters growth and knowledge-sharing at every level. We continuously improve and embrace change to help you adapt and thrive, from contracting to marketing resources, so that you can offer more solutions to your clients.
Ready to expand your offerings? Contact NCC today and see how easy it is to grow your business with its personalized support.
