Helping your clients feel confident about the future adds value for them—and for you. How do you prompt a productive risk conversation?
Who really wants to think about what could go wrong down the road? It’s much more satisfying to plan for putting a grandchild through college, or dream about funding the perfect retirement location.
And yet walking a client through their risk profile is key to helping protect their future.
You have the opportunity to raise important questions, then offer solutions that will put your clients’ minds at ease. An optimistic outlook can’t guard against unfortunate events—but a thorough strategy for their financial well-being certainly can.
Four risk beliefs and how to address them with risk management solutions.
“Social Security and pensions will fund our retirement.”
Risk:
While those resources will play important roles, there could still be critical gaps. The loss of a spouse could reduce benefits, causing an income shortfall.
Risk Management:
Cash value life insurance mitigates that risk in more ways than one: it offers legacy protection and tax-advantaged cash value growth to supplement retirement income or cover unforeseen expenses.
“If one of us gets sick, Medicare will cover our expenses.”
Risk:
Long-term care isn’t covered by Medicare—and 70% of 65-year-olds will need it at some point in their lives.1 What’s more, with health care costs on the rise, developing a chronic illness could quickly drain financial reserves.
Risk Management:
You can offer your clients several ways to ensure they will always have the care they need with various long-term care solutions.
“We’re on track to reach our retirement goals.”
Risk:
The numbers can be deceiving if taxes aren’t properly considered. Just as with buying a home, it’s all about location, location, location—are those assets in tax-advantaged income, tax-deferred income or taxable income?
Risk Management:
For some clients, Life Insurance Retirement Planning (LIRP) may be a way to achieve tax diversification with long-term asset accumulation. They can receive supplemental retirement income in a tax-advantaged way.
“I’ve looked after my business. One day it will look after me.”
Risk:
For your client’s business to remain prosperous, it must compete for top talent, reward existing employees and operate against a solid plan for a financially secure future.
Risk Management:
Walk your clients through a strategy that will protect the business they’ve worked hard to build. Some business owners are surprised by the role life insurance can play in key executive retention and more that will keep their company strong.
As a trusted partner, you’re in a position to protect your clients against hazards that aren’t on their radar. Listening carefully to their plans, goals—and even false assumptions—can reveal financial vulnerabilities. Then you can guide them toward decisions that safeguard their future.
Connect with your Concourse Financial Group team member for additional support.
