As a financial advisor, you have a fiduciary responsibility to your clients. You are working with them to mitigate risks and increase investment values. Asset protection through insurance is a significant component of providing the holistic approach to fulfiling your obligations to your customers.
The role of insurance
The role of insurance is to protect you financially should something bad happen. Insurance is going to aid your client in making sure that their possessions and valuables are protected in case the unthinkable happens. This means that it is important to make sure your clients have the appropriate insurance policy to fit their needs.
Financial Advisors and Insurance Agents should be working together
To help the client get the most out of their insurance, and their efforts with you as the advisor, you should make it a point to work hand-in-hand with their insurance agent. This not only helps the client have a smooth and easy experience with both companies, but ensures that they have the best policies for them, and there are no gaps in your plans.
So what do you tell the client?
Be honest with your client. Tell them that there can often be cost savings from shopping policies regularly with their agent, this is usually every 2-3 years. Sometimes these savings can even be significant enough to be investable, allowing the clients to reach their goals earlier than planned, or even surpass the goals you have set! Let them know that discounts change on insurance policies with new options becoming available regularly. Work with their agent to see if any new discounts have been presented, or see if your client may qualify now for a discount that they may not have qualified for in the past.
We find that many of our reputable financial advisor partners are encouraging all their clients to consider umbrella liability policies. Too many times accidents happen that exhaust the clients’ baseline coverages, causing the rest of the money to come out of pocket. An umbrella policy is a wise investment that doesn’t cost much more than staying home a few nights out of the year rather than going out to dinner.
Have more questions or want to speak with us further? We are happy to help! Feel free to chat or email us on our website, keslarinsurance.com, or call us directly at (603) 273-0953.
