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The Affluent Insurance Advisor

Periodic Audits

Having been a financial advisor for over 20 years, I know the mountain of items that needs to be constantly kept on top of by a financial advisor. The list seems to be increasing from year to year as the financial world gets more complex.

But you should be thankful for this complexity. Why? The simple concept is that the complexity of the financial services world breeds the need for clients to retain your services. Certainly a perverse truism which has helped your practice thrive over the years.

What we have found is that most financial advisory practices that do not stem from an insurance agency often neglect the life insurance policies of their clients. Just as clients mistakenly treat their insurance policies as a "set it and forget it," we are often finding that their financial advisors might be falling into the same trap.

The reason for this could be:

  • Clients tend to over-focus on their investment portfolios which forces you, the financial advisor, to spend an inordinate amount of time on this topic as well.
  • Your practice was built on collecting assets under management and never had a keen focus on the life insurance part of the equation.
  • You might not have a life insurance specialist in your practice making any sort of periodic audit time consuming, frustrating, and potentially incorrect leaving yourself up to mistakes in the analysis you're giving.

It would be hard to refute that offering your clients this valuable service is not within the scope of a properly vetted out financial plan. Let's face it, some would consider it malpractice not to offer regular reviews of your clients' insurance portfolios. And imagine the reputational damage your practice would incur when that one client had a problem with their policy that easily could have been picked up early had audits been completed.

Would they not share that negative experience with other that they had referred to you over the years? And in today's day-and-age a simple negative posting on social media could be the difference between securing and losing that next big client.

Don't go it alone. Retain the use of a qualified life insurance analyst or company that is experienced in providing these audits. You entered the profession not only to earn a living, but also to help your clients uncover potential pitfalls in their planning that "they didn't know they didn't know."

That is why they have retained you -- to deliver on that promise of helping them avoid the dangerous cliffs which they aren't qualified to see themselves.