When a “financial plan” starts with one specific product, be careful….
One of the core parts of our financial planning process is reviewing life insurance needs and making sure our clients have the right type of coverage.
It’s a really important part of a complete financial plan.
Unfortunately, what we often see is that somewhere along the way, clients were sold the wrong type of policy.
And they’re overpaying for the benefits they’re getting while missing out on other diversification and growth opportunities.
And here’s what our clients usually didn’t know when they bought the policy.
Some insurance policies like whole life can cost 5–10x more in premiums than other types of insurance, and can pay 80–100% of the first year’s premium as commission.
That creates a powerful incentive, especially for agents who don’t do full financial planning to present the product as an all-in-one solution for:
• a retirement plan
• a wealth strategy
• a savings vehicle
• a tax solution
Now, we absolutely believe insurance (including whole life insurance) has a place.
It can be a powerful planning tool when the right type of plan is used for the right reasons:
• estate planning
• legacy strategies
• liquidity for estate taxes
• certain high-income tax strategies
But it’s not a universal wealth strategy for every business owner, family, or young investor just getting started.
And should be funded at the right amounts, and at the right time.
Good planning always starts with your goals first.
Not a specific product.
If someone keeps showing up with the same recommendation for everyone…
like Groundhog Day…
that’s probably a sales system they learned, not a financial plan.
If you’ve ever wondered whether something you bought actually fits your individual plan and needs, that’s exactly the conversation we have with clients every day.
Follow along for more financial insights.
#FinancialPlanning #WealthStrategy #BusinessOwners #HighNetWorth #lifeInsurance
#WholeLifeInsurance #PersonalFinance #FinancialAdvice #WealthManagement
#CFP
コメント