MARKETING
Gearing Up from page 10
Coachable moment
“ We coach financial advisors to introduce the topic of insurance to their clients in the following way :
As a fiduciary , one of our goals is to work with you to build out a plan that aligns with the goals you hope to achieve while taking a level of risk that is comfortable for you . Part of doing that involves identifying risk that could derail the plan that is in place . There are a few areas that can dramatically alter the course of the plan we develop , such as a premature death in the family , a long-term care or medical event , or a disability that prevents someone from earning sufficient income to support the plan . We have aligned with a firm that approaches these areas with the same fiduciary mindset that we do . They are simply going to meet with you to identify any risk you are currently taking and to present various options to eliminate the risk . If you choose not to mitigate that risk we completely understand , but we have to do our job as fiduciaries by identifying what those risks are .
“ Aligning with an RIA or wealth management firm that understands the importance of this approach and is willing to admit that insurance planning is a blind spot for them . Here are a few of the services that fiduciary firms will find valuable : Insurance Reviews : Many RIAs know whether their clients own insurance policies , but most of the time they don ’ t even sell them the policies . They enter the policy ’ s information into their EMoney or Money Guide Pro system , but rarely evaluate the policy to ensure that it is performing the way it should or to determine whether it is the appropriate policy for the plan . Offering to evaluate insurance policies can be a great way to improve the client ’ s plan , mitigate risk , and make the fiduciary look good in the process .
Business Planning Reviews : Most business owners have done little or no planning in regard to risk management . Those who have completed the planning process rarely revisit the solutions they originally put in place . As a result , many possess antiquated plans that would not help the company survive if an adverse event occurs . Offering a complimentary meeting to evaluate the planning , or lack thereof , that business owners have in place can ensure that they are aware of their exposure and at least are taking an informed risk . Long-Term Care Evaluation : Long-term care is one area in which most financial advisors lack up-to-date information . Again , offering the client an evaluation of their current plan — or lack thereof — will enable you to present solutions designed to mitigate risk that could derail the plan . Bringing in an insurance professional for this aspect of the planning process makes the fiduciary look good . The worst-case scenario is a client who understands the risk and says they are comfortable with it . At the very least , both you and the fiduciary will have done your jobs . Many advisors say , ‘ My clients can self-insure .’ This may be true , but the real question is whether the client made that decision or whether the fiduciary made it for them . Many clients would not choose to self-insure if they understood the market and the options that are available .
“ The products and services our industry provides are more valuable today than ever before . The problem is that most financial advisors are not current or comfortable with risk management planning . The gaps in their knowledge present an opportunity to collaborate with them to provide a true fiduciary experience to clients while bringing professionalism back into the insurance industry .”
Gearing Up continued on page 14
Most financial advisors are not current or comfortable with risk management planning . The gaps in their knowledge present an opportunity to collaborate with them to provide a true fiduciary experience to clients .
Barbara Crowley
12 Perspectives Q4 2021