One of the benefits of working with distribution channels is the opportunity to imbibe different contexts of financial principles. One such principle that had a profound impact in my own development as a financial advisor is the "X-curve" which I first encountered while working with the International Marketing Group (IMG)
This principle states that breadwinners - at an early stage may not have much savings but already have huge financial responsibilities to their families, this can be addressed by a life insurance product with investment component (typically a VUL) where the life insurance coverage may be able to mitigate possible lost income if something happen to the breadwinner while the investment component will start building up long term savings
As regular premiums are made over time, financial responsibilities may lessened as other members of the family may start contributing to family income, the principal breadwinner may then decrease his contribution to the life insurance component and shift more to the investment side to accelerate fund growth - this could be intended for retirement funding, build-up of a medical fund or provisions for other important life goals
This makes the case for the income replacement benefit of a life insurance policy and its importance to a breadwinner's family during the early stages
just sharing, all the best my friends!
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