Today’s COVID-19 environment presents an uncertain and complex world. Financial advisors, though, can help clients reinvent their business and navigate this world, said MDRT member Arlyn Tiong Tan, MBA, FChFP, of Manila, Philippines.
In this era when the daily news reminds us of ever-present health risks, clients may be more receptive to talking about risks and mitigating them, Tan said in her 2020 MDRT Annual Meeting and Global Conference Virtual Event presentation. She reminds clients there are nine other risks they are exposed to:
1. Too much wealth can pose risks to those who don’t recognize the magic of diversification.
2. Lack of liquidity can increase the risks of losing opportunities.
3. Loss of income may mean that mortgages may not be paid on time.
4. Transitions in life happen when children are migrating for school and work. Entrepreneurs run the risk of having no successor.
5. Having a long life means working hard to have good health.
6. Having a short life means crafting a legacy plan for those who are left behind to continue the journey.
7. Having a disability means being unable to work to one’s maximum capacity.
8. Having a sick member in the family means there is a risk of relationships coming under stress.
9. In case of accidents, work will be disrupted.
While risks are present 24/7, “the good news is that there is such a thing as risk management,” Tan said. “I show my prospects a framework on risk management. There are four methods: terminate, treat, tolerate and transfer.”
See more in Tan’s MDRT Speaks presentation. Follow the event on social media using #AMGC2020.