Tip of the Week

Client Considerations of Risk and Insurance … and a Suitable Response to Their Needs

There are numerous types of life insurance policies—seemingly something for every “taste.” But which is right for me? Among other considerations, there are issues of product dependability versus potential risk that expectations won’t be met; flexibility of premiums versus required payment amounts and schedules; and overall compatibility with one’s comfort and style of accumulating long-term assets for death benefit or retirement.

When the client is interested in more than just dependability, it is important to seek an appropriate alignment of the amount of risk they are willing to take with the potential for any uncomfortable outcomes associated with the product.

Choosing a suitable financial product is more complicated than choosing a garment to wear. Suitability is not so much about whether “indexed UL product A” is better than “indexed UL product B”—that’s almost impossible to know at the outset—but whether their risk tolerance and awareness of risk potential is sufficiently balanced to accept any inherent volatility that might occur over time.

More than merely asking questions and making comfortable recommendations, client suitability is about artful conversations and careful construction of suitable possibilities that fit the client’s circumstances. The process is focused on allowing the client  to express their concerns and questions—allowing discovery of an ultimate answer they can declare “now that one is in my interest!”