Everybody loves working with wealthy clients, but finding success in this desirable demographic means you must bring more potential — and more complex — solutions to the table to fill their various needs.
The June issue of Life Insurance Selling features three articles that focus on opportunities and ideas for working with high net-worth (HNW) clients. Guy Baker, MSFS, CLU, and Stanley Mountford write about the pros and cons of Discounted Private Split-Dollar hybrids. The product can be a great way to minimize taxes for HNW clients, but if it is too aggressive and not structured properly, it can also put them at risk of a costly IRS challenge.
As the current estate tax rates are scheduled to sunset at the end of this year and uncertainty about future rates and limits persists, Victor Sanchez, M.B.A., CLU, says in his article that it’s time to reframe your discussions with HNW clients to focus on legacy planning rather than estate tax solutions.
In June’s Producer Roundtable, contributing editor Charles K. Hirsch, CLU, questions elite producers R.J. Kelly, CLU, ChFC, MSFS; Christine Khemis, M.B.A., CLTC; and Walter Putnam, CLU, ChFC, CFP, AFP, about how they broke into the HNW market, the most pressing needs of today’s HNW clients, the challenges associated with servicing their clients, and what advice they have for producers looking to break into the market.
In addition to what’s in the June issue, I also conducted a video interview with Ted Tafaro, CEO of Exceptional Risk Advisors LLC in Mahwah, N.J. Tafaro is an expert on high-limit specialty life, accident and disability products for clients with extraordinary insurance needs, including physicians, entertainers, athletes, and other high net-worth executives and professionals. I asked him about the current state of the HNW market and about what advice he has for producers interested in targeting this lucrative market.