Worldwide, we face a dreadful undercoverage of insurance. Too many financial advisors have become simply wealth managers, not realizing that insurance is the foundation of a financial plan. It’s crucial we make sure that this foundation is strong enough to support clients financially, no matter what happens.
My own company received a critical illness payout when my husband, who was both the finance and IT director, was ill. Those funds enabled my company to function. Most importantly, it meant I could reduce my time at work for several weeks without any thought of what the cost would be.
Ensuring adequate coverage
With longevity on the increase and cancer now hitting one in two of us, critical illness insurance is an important part of what I recommend to clients. We know what we can plan for, but we still don’t know what will go wrong.
What if clients say they can’t afford more insurance?
Sometimes, we think clients can’t afford all the coverage they should have, and we hesitate to recommend they spend more on insurance. One of the things I realized after joining MDRT, though, was that my clients needed to take out far more coverage than I probably suggested to them in the first place.
I also try to put the cost of the premiums in perspective for my clients by telling them if they gave up buying one coffee a day, that money could go toward protecting their family. It’s so very important. It was also a huge part of getting me to Top of the Table.
Also, if you revisit those clients, you may find that what they couldn’t afford a few years ago, they can afford now. Their situations may have changed.
Clients who have insurance through work
Oftentimes, too, people feel they have got enough insurance coverage through their job. Not many people today, though, will have a 40-year career with one employer. They may not get coverage when they move on to a different role. And I always say, “You don’t own that. You rent it while you’re in that job.”
See more from Caroline Banks in her video, “Mastering insurance coverage: A path to the Top of the Table”
Furthermore, take care of yourself and your family. It’s so important that as financial advisors we’re doing what we tell our clients to do and that our families are protected. And tell the people in your life you love them and make every day count.
Caroline Banks, of London, England, UK, is a 35-year MDRT member, an MDRT Past President and a Top of the Table member.
Dear Carline,
Glad to read your views, as a MDRT
member… it is always a case the consultant doesn’t analyse the clients need, under sales insurance
or other provisions CI, Acc Benefits
Disability, family income , health benefits. Advisors suffers may be
Inferiority complex forget their duty
to give awareness to clients.
Dr. Ghanshyam Nihalani Dubai Compass grp.
As usual Caroline is right on point. Brilliant article. Essential financial security comes before wealth management because, as she says, it is the foundation of wealth development. Bravo Caroline!