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Apr 06 2021

An easy way to explain permanent life insurance

Try this favorite idea from an MDRT member to help explain life insurance to a client.

By George B. Sigurdson, CLU

Topics Covered

Insurance solutions

I first heard this idea at an MDRT meeting in the late 1970s, early in my career. Since then, I have developed and used it with success with my corporate clients. 

When we approach our business clients, we need to use their language that they understand. 

I say to my client, "Let's say you had an extra employee that you paid to clean your washrooms and do menial chores. If this employee did not work out, would it affect the solvency of the company?" They always say no. "If that's the case, would you like me to show you an idea as if I was that extra employee — basically illustrating the permanent insurance concept?" 

What I'll do is: 

  • I will work for $10 per hour. 
  • After 10 years, you can stop paying me, and I will continue to work for you for the rest of your life. 
  • After 20 years, you can stop paying me, and I will continue to work for you for the rest of your life. 
  • When you retire, I will pay you an income. 
  • If you need to borrow money, I will either lend it to you or co-sign it for you up to 90% of the wages you paid me. 
  • If you become disabled, don't worry, I will pay myself. 
  • When you die, I will make a tax-free, lump-sum payment to your family/business. 

Based on this information, would you consider hiring me? 

George B. Sigurdson, CLU, of Winnipeg, Manitoba, Canada, is a Top of the Table qualifier who has been an MDRT member since 1973. This is from his 2017 MDRT Annual Meeting presentation “Put me on your payroll.”