Clients Shy on Equities? Talk Insurance

“If you’ve got a problem, make it a procedure and it won’t be a problem anymore.” Ben Feldman (1912 – 1993) – business man and prolific life insurance salesman.

So how do financial advisors making above average incomes, with large books of business, recognize they might have a problem with life insurance?

Rather than looking at the definition of a problem, let’s consider some synonyms like – “difficulty”, “crisis”, “dilemma”, “quandary”, “setback”, or “hitch”.

• “Crisis” is a word that comes up when markets tank and incomes shrink.
• “Dilemma” or “quandary” may be words that cross some advisors’ minds when they notice the stack of undelivered Financial Plans for their clients.
• “Difficulty” is having a young widow with a couple of young kids for whom a charity golf tournament was organized by the advisor who didn’t sell them life insurance or refer them to an insurance specialist.
• “Setback” may be applied to the capital gains hit that Mom’s estate had to pay leaving that much less for the children to inherit and the investment advisor to work with.

Why use a system to enable the insurance conversation or positioning of an introduction to an insurance specialist in every client meeting?

Wayne Cotton of Cotton Systems Inc. answers that question nicely with his acronym:

S – SAVE Y – YOURSELF S – SUBSTANTIAL T – TIME E – ENERGY M – MONEY

Systems are tracks to run on. Consistent use of systems or processes ensure all the bases have been covered every time, or all hand-offs or introductions are done in the same way, building confidence, competence and trust for everyone involved.

Holding an insurance license obligates an advisor to discuss insurance or, as a minimum, refer clients to an insurance specialist. To not do so significantly increases the likelihood of litigation.

After all, mourning heirs can easily be persuaded that their grief would be lessened if there were proceeds from a lawsuit against the deceased’s investment advisor and the advisor’s firm or MGA.

Dually licensed advisors committed to finding a methodology to the holistic approach available to them by virtue of the licenses they hold are ideally positioned to make an enormous difference.