Saybrus Partners: More than Half of Advisors Don’t Incorporate Life Insurance into Planning Discussions

“Our experience has shown that clients are looking to their financial advisors for comprehensive financial planning,” says Kevin Kimbrough, national sales manager for Saybrus Partners, in a prepared statement. “Standard practice is that the planning process should begin with a foundation of protection and conclude with a wealth distribution phase. Therefore, it is critical for advisors to consistently include life insurance in their clients’ financial plans.”

The survey also discloses that less than half (47%) of advisors say they review existing life insurance policies with their clients annually. Twenty percent say they only assess their clients’ policies when they become aware of a major life change, such as marriage or the birth of a child.

That review is most often narrowly focused on whether the policy is adequately meeting their current needs.  In addition, some financial advisors (10%) discuss clients’ policies only if clients raise the issue.

When asked what would contribute to making them more comfortable discussing life insurance, 42% of advisors say they would be interested in becoming more comfortable discussing life insurance either through working with a life insurance specialist who can help identify solutions for their clients or attending a life insurance seminar aimed at financial advisors.