A primary concept behind comprehensive financial planning is that every financial decision someone makes has a potential effect on every other aspect of his or her financial life. For example, insurance coverage can have a bearing on estate planning. Estate planning can have ramifications that affect the person’s tax strategy, and so on.
The insurance consultation is an ideal point at which to open discussion of other personal financial needs and goals. The insurance professional who is prepared to offer prospects additional services gets more value out of this initial engagement, as does the client.
The CFP certification is tailor-made for successful, well-prepared financial professionals who wish to integrate financial planning into their existing practices and increase client satisfaction. The CFP marks — and the four “E” requirements (education, examination, experience, and ethics) they embody — enhance prospects’ perceptions of insurance professionals as financial planners.
Editor’s Note: The preceding tip was taken from “Comprehensive Financial Planning Adds Value to Practices,” by Rick Adkins, M.B.A., ChFC, CLU, CFP, which ran in the December 2003 issue of Life Insurance Selling. Click here to read the entire article.
To read last week’s Tip of the Week, click here.
For more on professional designations, see: