Day 4: Why People Need Life Insurance – Importance of Financial Protection

DAY 04: WHY PEOPLE NEED LIFE INSURANCE?

Introduction
People have financial responsibilities towards their families. Children's education, household expenses, parental support and outstanding liabilities are important considerations in financial planning. Life insurance can be one part of a family's financial protection strategy, subject to the terms of the selected policy.

1. Family Protection: Consider how the family may manage financially if the main earning member dies.
2. Children's Education: Include future education needs in financial planning.
3. Financial Responsibilities: Consider household expenses and dependent family members.
4. Loans and Liabilities: Review outstanding financial obligations when assessing protection needs.
5. Peace of Mind: Responsible planning can help families prepare for unexpected events.

Practical Example
A father is the sole earning member of his family. His children are studying and household expenses depend on his income. A Financial Advisor should understand the family's responsibilities, needs and affordability before explaining suitable available life insurance options.

Today's Assignment
1. Identify five people with family financial responsibilities.
2. Consider their major financial obligations.
3. Explain the importance of financial protection to one person.
4. Understand the customer's needs before presenting a solution.

Key Learning
Don't sell fear. Help people plan for their family's financial future.

Trainer: Khizar Warsi
SM – SLIC Jhelum Zone
www.warsiesp.com.pk