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Just a great article that was originally published in the Journal for Financial Service Professionals:
The Life Insurance Agent as Financial Planner
A few key lines in this blog:
First, many traditional life insurance agents are becoming financial planners, not just in title but in terms of their products, services, and fiduciary responsibilities. Second, financial planning is rapidly transitioning from a sales model to an advisory model. The regulatory, economic, and demographic factors that are driving these trends are less important than their consequences. As life insurance agents become financial planners, and as financial planners become true advisors, the whole area of insurance and risk management has the potential to be better integrated into financial planning. Insurance is no longer just a one-off in planning.
“In most cases it’s not the client’s goal to maximize wealth, but to meet his or her financial goals. This brings in the issue of failure, and failure happens when the client has unexpected losses. Add to the equation the typical client’s aversion to risk, and the need to avoid failure is compounded.”
The rest may be a thinly veiled commercial for RICP and the new WMCP, but I think it's a great article pointing out that (well-trained) insurance agents do bring a key understanding to the financial planning arena regarding risk management in retirement.
The Life Insurance Agent as Financial Planner
A few key lines in this blog:
First, many traditional life insurance agents are becoming financial planners, not just in title but in terms of their products, services, and fiduciary responsibilities. Second, financial planning is rapidly transitioning from a sales model to an advisory model. The regulatory, economic, and demographic factors that are driving these trends are less important than their consequences. As life insurance agents become financial planners, and as financial planners become true advisors, the whole area of insurance and risk management has the potential to be better integrated into financial planning. Insurance is no longer just a one-off in planning.
“In most cases it’s not the client’s goal to maximize wealth, but to meet his or her financial goals. This brings in the issue of failure, and failure happens when the client has unexpected losses. Add to the equation the typical client’s aversion to risk, and the need to avoid failure is compounded.”
The rest may be a thinly veiled commercial for RICP and the new WMCP, but I think it's a great article pointing out that (well-trained) insurance agents do bring a key understanding to the financial planning arena regarding risk management in retirement.
