If you have a career in the world of real estate, market fluctuations and commission-based income are the norm, so financial security should be a top priority. Among the various coverage tools available, life insurance is an important part of a realtor's comprehensive financial plan. From term life insurance policies that provide affordable coverage during peak earning years, to permanent policies that offer lifelong protection and potential cash value accumulation, you have several coverage options to consider as a realtor.
Whether you're a newly licensed agent looking to establish a safety net or a seasoned broker considering ways to protect your growing assets and provide for your family's future, understanding your life insurance options is key to building a solid financial foundation. In this article, we’ll discuss why it’s important for individuals in the real estate field to secure life insurance and explore different types of policies that may be right for you.
Why do realtors need life insurance?
Realtors, like many self-employed professionals, face unique financial challenges that make life insurance a crucial component of their overall financial strategy. Here are just a few of the reasons why it’s important for realtors to secure life insurance coverage:
Income Protection: Real estate income can be volatile, with periods of high earnings followed by slower months. Life insurance ensures that your family's lifestyle is protected, even if something happens to you during a downturn.
Business Continuity: For realtors who own their own agencies, life insurance can fund buy-sell agreements or provide capital for the business to continue operations in your absence.
Debt Coverage: Realtors may carry personal or business debt related to their career. Life insurance can pay off these obligations, preventing your family from inheriting your debts.
Estate Planning: Life insurance proceeds can help cover estate taxes, ensuring that your assets are passed on to your beneficiaries as intended.
Client Trust: Having life insurance demonstrates financial responsibility to clients, potentially increasing their confidence in your services.
Supplemental Retirement Income: Certain types of permanent life insurance policies can be used as a tax-advantaged investment vehicle, providing additional income for realtors who want flexibility in their retirement planning.
Mortgage Protection: For realtors who invest in properties, life insurance can pay off those additional mortgages, protecting these investments for your family.
Life Insurance Policies for Realtors
There are two primary types of life insurance: term life insurance and permanent life insurance. Term coverage is intended to last for a specific period of time, typically between 10 and 30 years, making it a flexible option that you can align with specific financial goals. This type of policy can be a good option for realtors since they often face income fluctuations, and the lower premiums of term policies make it easier to maintain coverage during lean periods.
Permanent coverage, on the other hand, is intended to last your entire lifetime. Permanent policies are typically more expensive than term life insurance, but they offer a cash value component that accumulates over time. The cash value can act as an additional financial safety net for realtors to lean on during market downturns, and can also provide another source of income for retirement planning.
Let SelectQuote Help You Find the Right Life Insurance as a Realtor
If you’re a realtor who has questions about shopping for life insurance, SelectQuote can help. We have nearly 40 years of industry experience and have helped millions of customers like you. Our licensed insurance agents will take your profession into account while shopping for life insurance to help you find the right policy as a realtor. In just minutes, we can gather unbiased quotes from several of the nation’s most highly trusted carriers, helping save you time and money.
