Financial planners urged to team up with insurance professionals

Financial planners urged to team up with insurance professionals

Financial planners urged to team up with insurance professionals

Financial advisors serving baby boomers need to take a different approach than they might with other clients, according to a white paper from Chubb.

Baby boomers have different risk profiles than younger clients and they’re also less concerned with accumulating wealth. The Chubb white paper found that they were more focused on concerns like philanthropy, travel, buying vacation properties and making sure they could give financial assistance to their children.

Those activities come with their own special set of risks, Chubb found — from personal liability for family members to property damage risk for new real estate. Financial advisors even need to account for risk in philanthropy. The white paper cited a study finding that 61% of high-net-worth individuals served on nonprofit boards — but those boards may not offer sufficient liability insurance for directors and officers.

Baby boomer travel enthusiasts also often lack adequate coverage for medical evacuation, Chubb found. In remote locations, emergency medical evacuation can run up a tab of $200,000 or more.

Financial planners need to take all of these eventualities into account to protect boomer clients from the potential for “catastrophic” financial losses, Chubb said.The question for you is: are you friendly with any FAs who want insurance for their clients? If not, this holiday season might well be a good time to start getting acquainted with some.

The question for you is: are you friendly with any FAs who want insurance for their clients? If not, this holiday season might well be a good time to start getting acquainted with some.


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1 Comments
  • Kathy Your Net Worth Manager 2016-12-06 11:49:54 AM
    My model is that clients come to me as a fee only planner and I work on cash flow, heading off disasters, debt, short term and long term savings. I agree there is no point in having a great portfolio and going on vacation and ending up with a huge medical bill you have to spend it on. This year I encouraged everyone to get a health check on their home insurance. I teamed up with a local broker and he reviewed them for us. Several would have had nasty shocks , not covered as thought and others he saved money. I believe our finances are a jigsaw and all the parts have to work together to benefit us.
    I introduce to a life advisor / investment / legal/ banking/ loans/ accounting/ home inspection but never take an introducer fee as there is an immediate conflict of interest.
    It actually took me several goes to find the right insurance agent , several tried to upsell my client despite having been given a case study , naviplan etc stating clearly we knew what they needed. By referring people they reflect on you to your clients so its not easy
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