A Saybrus survey shows that many miss the chance to bring plans and policies together.
A recent study performed by Saybrus Partners, Inc., has shown that financial advisers will frequently overlook the chance for selling life insurance as an important part of an individual or family’s financial planning.
Only 34 percent of the respondents claimed to be “very comfortable” broaching the topic with clients.
The survey also showed that 56 percent of advisors have not made it a habit of regularly discussing the importance of this type of coverage to the protect the financial future of their clients. The research was performed earlier in May 2012, at the 2012 Financial Advisor Retirement Symposium, which was held in Florida. It included the participation of financial advisor attendees.
Among the respondents, 18 percent said that they were “uncomfortable” or “very uncomfortable” selling life insurance.
According to the Saybrus Partners national sales manager, Kevin Kimbrough, “Our experience has shown that clients are looking to their financial advisors for comprehensive financial planning. Standard practice is that the planning process should begin with a foundation of protection and conclude with a wealth distribution phase.” He went on to explain that for this reason, it is very important for advisors to make a habit of including this coverage as a part of the financial plans developed for their clients.
The current hesitation by those selling life insurance to actually discuss it with their clients aligns with the findings from last year’s survey, as well. In fact, even if the client already has a policy, financial advisers frequently don’t include the coverage as a part of their review every year.
Only 47 percent stated that their annual reviews with clients include their life coverage. Another 20 percent stated that selling life insurance policies was only part of the assessment if a major life change has been brought to their attention, such as the birth of a child, or a marriage. Even then, the review is generally focused quite specifically on whether or not the policy is currently meeting the needs of the client, and does not delve deeply into any details.