The Value of Life Insurance In Your Fee-Only Financial Firm

Products don’t determine an advisor’s success. It’s the strategy behind the core offerings and services that attracts clients and breeds success. And life insurance can be a key component of that strategy, both for your firm and for your clients’ secure futures.

Life insurance can be cumbersome: keeping up with industry changes, all the paperwork involved, staying up-to-date on the ever-changing ratings of insurance companies, and knowing the sweet spots of each insurance company.

And you’re slammed managing the other aspects of the solutions you offer clients.

But here are five key areas where insurance can largely impact your clients, and therefore, five key reasons you should be including insurance in your comprehensive planning efforts:

• Hedge against — and minimize the impact of — taxes (by creating asset protection strategies using trusts and life insurance); especially alluring now with income and estate taxation for higher net worth clients expected to rise
• Provide business clients with a full suite of solutions (by offering greater retirement income benefits and business continuation coverage for owners and employees)
• Combat market volatility and inflation (by using holistic planning approaches)
• Design estate plans (for family endowments, foundations, long term care protection, and to avoid family conflicts)
• Create a steady income during retirement (by providing clients with tax-deferred sources of income with minimum guarantees)

The Allure of One-Stop Shopping

When it comes to financial matters, clients appreciate having one source for their planning. And it’s only natural for your clients to talk with you about insurance since you’re already connecting with them about their current financial position, future plans, and risk tolerance. But insurance is not what you do. Just like reading trends on NASDAQ isn’t what we do.

So work smarter, not harder with a trusted resource on your side. We can reduce your time researching and developing tailored client solutions. And you can focus on making the recommendations you specialize in, while still presenting life insurance to your clients not only as a risk management tool but as an asset class.

And while your clients may be culturally diverse:

Veterans (born 1925-1945), with “command and control” management style and sharing of information on a “need to know” basis

Boomers (born 1946-1964), with management systems that range from “paternalism” to “autocracy”

Gen X (born 1965-1981), part of the information explosion and internet revolution

Or Gen Y (born 1982-1993), big on consumerism and a desire to interact with everything they consume

They all share one thing in common:

Most lack the appropriate level of knowledge required to make informed decisions about the right type of insurance to meet their individual needs.

Across the generations, purchasing behaviors vary with the relative cost of the decisions. Clients may not need your help with basic types of coverage like renter’s insurance or auto insurance, but the more expensive, complex products like life insurance, disability insurance, long term care insurance, and annuities tend to be purchased with more advice from professional advisors.

Somewhere to Turn

Consumers may look to family and friends for information. They may search the internet. If their friends and family had the best, most up-to-date information, that might not be a bad thing. And if the internet returned accurate quotes and did comprehensive underwriting upfront, that might not be a bad thing.

But since neither of those is true, they need you. Your clients trust you. And they aren’t thrilled about searching for life insurance to begin with.¹

22% would rather sit through a bad movie at a theater

6% would rather eat a live bug

30% would rather get their teeth cleaned

25% would rather clean out their fridge

But with a trusted financial professional, and a trusted insurance resource, their experience will be more like watching a blockbuster hit at the movie theater, eating movie-theater popcorn, that doesn’t get caught in their teeth, while a team of professional house cleaners sanitizes their fridge and entire house.

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