We often hear the following, “When I started in the business I used to write a whole lot of DI insurance….” And this one, “ I provide investment advice for my clients to manage their accumulation of wealth limited exposure to market risk.”
The question is this: when did it become “okay” or an acceptable industry practice to overlook or ignore the protection of the single most important resource to meet our financial objectives, the income?
The majority of individuals require the “fuel” their “income” to power the engine of financial success. What caused the veteran insurance professional, financial advisor or private wealth manager to no longer ask the question, “If you were unable to work for an extended period of time due to an accident or illness, how are you and your family prepared to handle this interruption of cash flow?”
Consider the personal impact to you as the “trusted financial advisor” if one of your “favorite clients” was involved in a car accident or stricken with cancer. Both events, and many others, could create a circumstance that required them to liquidate investment portfolios that you manage, possibly prompting them to sell their home and downsize to different area or school for their children due to the reduced cash flow.
The challenge to you is to ask a few more questions. Turn to a protection planning resource that you trust, find out if they have adequate life insurance or disability income protection insurance. You speak to clients and prospects about “asset allocation” “risk diversification” “market risk”. What about “life risks,” the actual events that we do not have control over but do have control over the impact it may have on our family?
How about applying the standards of a “fiduciary” responsibility, not just to investment products and advice but to the management of “risk” within protection planning products and advice? We recently found a definition of an investment fiduciary to be “someone who is managing the assets of another person and therefore stands in a special relationship of trust, confidence &/or legal responsibility”. That is a powerful statement. There is just as much of a responsibility to the insurance professional, the risk management specialist of a family’s protection planning portfolio.
Please take the next five minutes to write down the names of five of your favorite clients, commit yourself to calling them to schedule a review of their “protection planning portfolio” within the next five days. If you are not comfortable in leading that conversation, please call us to assist. Diane Kramer 913-403-5814.
- I did not check the box! – A cautionary tale.
- Income Protection Sales Ideas – This brochure has a lot of great ideas for getting your customer to consider an income protection product.
- Five Questions Your Clients Will Ask – Prepare for the most common client questions.