If you’re going to be truly successful, then set yourself apart from everyone else. Go beyond the limits of what classifies the average person and be exceptional.”–Michael Dell
Over the years, the financial industry has evolved into a well-oiled machine. What concerns boomers is the need for advice and guidance when it comes to this complicated contraption. In the past, bankers were in one discipline and stock brokers in another, with insurance and annuity advisors in a third. These three areas have now merged and are interwoven. With boomers quickly approaching retirement, there is a large abundance of people who are looking for direction from advisors.
Life insurance professionals take on an important role in the planning process. If an advisor can convey the importance of life insurance to clients, the sale almost goes without saying. If life insurance is understood, it is a life-enhancing solution for most clients. The key is to help them understand the complexities of life insurance while also reminding them of the unique features no other financial tool can offer—it creates cash when needed most.
Remind your clients life insurance is not a belief; it’s a tool–and in many situations, it’s the best tool. Thinking outside the box when discussing the product is sometimes the key to making all the difference in their lives. What showcases the exceptional advisor is the ability to effectively communicate customized solutions for their clients, ensuring their best interests are truly kept in mind.
How advisors can help
What can we do as advisors to help them? With all of these changes taking place over the last three decades, the one financial tool that is arguably the most complicated, yet necessary, is the life insurance contract.
I like to tell clients this product will allow them to stroll through the remaining years of their lives more confidently. If the need arises to consume most of their assets while they are living, this unique financial tool lives on by restoring the cash they consumed, providing the legacy they hope to leave to their beneficiaries.
I once worked with a couple who had a large, blended family. They hoped to provide for their children and 10 grandchildren; however, the husband was deemed uninsurable when considering a life insurance policy. Thankfully, his wife was still insurable at a standard rate, allowing them to dedicate the annual gift tax exclusion into a life insurance product. They were then able to offer a $12-million donation to charity.
In this particular scenario, the product allowed my client to not only provide a large inheritance for multiple family members, but also donate to charity, tax-free.
As advisors, it’s your job to convey the importance of life insurance.
Philip E. Harriman, CLU, CHCF, 2007 MDRT President, is a partner with Lebel and Harriman, LLP. Responses and questions can be sent to email@example.com.