2. Keep It In-House


A financial advisor may feel most comfortable hiring an employee or bringing in a specialist from their institution or broker-dealer to take the lead on life insurance. This individual will be charged with keeping up with policy changes and analyzing upcoming client visits to determine which clients can most benefit from having life insurance options.


At the same time, an in-house life insurance specialist can still benefit from relationships with the greater insurance world. It’s a good idea for them to team up on occasion with freelance insurance specialists and cultivate relationships with insurance company representatives. These experts can help offer industry perspective, as well as practical information about product offerings and sweet-spots.

3. Going It Alone


A financial advisor may simply want to go the self-education route to become versed in providing life insurance products. An advisor should work with insurance companies to find accessible information and avoid being overwhelmed by research. This will be an ongoing process, so taking an industry study course once a quarter or twice a year can help the advisor stay up to date on market changes.

Certainly, going it alone will require a time commitment. As many advisors have noted, life insurance is a complex subject and products are constantly changing. That said, the benefits of becoming an expert on life insurance products are myriad and can help expand and strengthen an advisor’s business.

Each approach to incorporating life insurance into an advisor’s practice has its unique considerations. Selecting a life insurance partner requires the advisor to find someone with the know-how, commitment to the relationship and a complementary style. It also will require effective communication from both parties. Hiring an employee will require that person to drive strong sales growth in order to make that route economically feasible. Finally, while self-educating offers the greatest control and least cost, being all things to all people can sometimes prove too difficult.

A New Dimension


Certainly, providing life insurance will be supplemental to a financial advisor’s investment business. That said, given the opportunity in terms of strengthened relationships, client retention, assets under management stability and new revenues, advisors who offer life insurance have the ability to add a new dimension to their practice. Advisors who choose to embrace and integrate life insurance into their practice will expand their value proposition for their clients and enhance their overall business.

Kevin Kimbrough, CLU, is principal, national sales, at Saybrus Partners Inc.