MARKET STRATEGY
“It’s important to consider
the higher level of
education that you have
to continue to pursue if
you want to work in the
business market.”
Keith Eck CLU, ChFC,
founder/owner of Keith Eck Financial
High net-worth mountain from page 9
and financial problems tend to become magnified. But what’s the
most unique thing about this market that really differentiates it
from the middle market? Mr. Eck said, “The things that stand out
to me are the potential sizes of the cases, both in the amount of
premiums and the multiple needs business owners have. Needs
center around estate planning, buy/sell arrangements, business
continuity, and equity among kids who are working in the business
and those who are not. In addition, the higher net-worth market
typically has multiple asset management needs, where retirement
plans, personal wealth accumulation, liquid alternatives, and cash
accounts all come into play.”
For Ms. Kaelberer, the higher net-worth market gives her the
chance to provide more assistance. “There are more unique
opportunities,” she said, “for creativity in financial planning
and tax planning. Taxes are more important to this market. And
because people in this market tend to have more, we can simply
do more!”
Benefits of talking amongst themselves
Both of these advisors have a ton of experience with this
market, so not much surprises them these days. But I asked about
what surprised them early on. In other words, is there something
that an advisor not currently active in this market might be
surprised to know? Ms. Kaelberer said, “Once you win over your
higher net-worth client, he or she is more likely to refer you to
other potential clients. It seems these folks talk with one another
more about taxes and investments, which then leads to them
sharing our firm name with others. Also, interestingly enough,
they appreciate value — they are not as focused on price — and
they are willing to pay for added value.”
Mr. Eck added, “It’s not really a surprise, but it’s important to
consider the higher level of education that you have to continue to
pursue if you want to work in the business market. For example,
10
Perspectives
Q1 2020
I am a member of a nationwide organization, the Business
Enterprise Institute (BEI), which trains advisors from different
disciplines on the nuances of business succession planning so my
team can better assist our business owner clients who are looking
to exit their businesses.”
Of course, as all NAILBA general agencies are well aware, many
life insurance wholesalers offer advanced sales support, so I asked
these two about whether and how they use brokerage general
agencies and other wholesalers in the course of their business.
Mr. Eck told me, “Yes, I definitely use wholesalers, but mostly on
the investment side. My firm is associated with a producer group
that is a member of Capitas, a nationwide organization of high-
level insurance brokers. They provide access to life or disability
carriers that offer their products to non-captive producers.
Don’t go it alone
“Our producer group,” he continued, “also has product experts
that run all my illustrations and provide design assistance for
difficult cases. I pay for access to these specialists, but there
is no way I can stay up to date with the products and product
changes of all the companies that are available to our group. I
can’t imagine trying to run my company by myself without the
assistance of our support team and wholesalers with some of the
good investment firms I use.”
Ms. Kaelberer sees it a little differently. “We have never relied
on wholesalers or brokerage operations for assistance here,”
she said. “Information on their product specifications or sales
ideas are valuable; however, our firm focuses on comprehensive
planning, so solo strategies or external pieces don’t fit well with
our philosophies.”
And those differences in philosophy and approach clearly
distinguish just a few of the different approaches top producers
take to elevating their market, illustrating clearly how there’s more
than one way to reach the top of the mountain.