Fee-only advisors are dealing with clients who are
in frequent need of life insurance products, according to a new survey.
What remains to be seen is whether or not advisors
will take a more active role in meeting that demand-or continue to pass
clients off to insurance specialists.
"In many cases advisors are forced to refer their
clients away because they do not understand or do not have access to
insurance-based products," according to the survey's authors.
The survey by Ameritas Direct, a division of
Ameritas Life Insurance, found that 80% of 160 advisors surveyed
believe their clients have a need for life insurance products.
The survey also found that 60% of advisors have a
frequent or occasional need for annuity-based products, and two-thirds
of respondents prefer to offer no-load annuity and life insurance
products.
A third of surveyed advisors said they were worried
that the life insurance provider they recommend to their clients will
compete for their business.
"Clients are becoming increasingly more
sophisticated about investment products and fees," says Catherine S.
McBreen, managing director of Spectrem Group, which carried out the
study for Ameritas Direct. "As affluent investors continue to turn
toward fee-based advisors, the need for no-load products will continue
to rise."