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Life Health > Life Insurance

Insurance For All Walks of Life

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With the United States becoming increasingly diverse, advisors must remain dedicated to finding the best possible products for each individual. The U.S. Census Bureau estimates minorities, now roughly one-third of the U.S. population, will become the majority in 2042, with the nation projected to be 54% “minority” in 2050. The ever-present need to understand your clients’ goals, preferences and risk tolerance will become vital as your client base becomes more diverse. As advisors, this means we must be tuned in to our clients’ needs and willing to educate them on the right options available to spur positive growth for their personal assets.

There is no standard approach advisors can apply to financial planning. While you may recommend a life insurance, long-term care and annuity plan for multiple clients, the rationale behind each recommendation should vastly differ. Whether your client’s preferences are cultural, financial or a combination of both, advisors must be able to tailor financial plans accordingly. Applying this strategy will hone our skills for the future as the fusion of cultures continues to flourish in the United States.

Diverse investments

It is important to make sure, when recommending products, we help our clients understand allocating funds over a diverse group of investments can be the greatest predictor of financial success and stability in the long term, especially after the tumultuous market behavior of the past several years. Life insurance is a unique financial tool in that it magnifies or replaces assets.

See also: Multiple Cultures, Multiple Financial Needs

Advisors should assure their clients life insurance can, under current law, broaden allocation on a tax-deferred basis until money is withdrawn. At that point, money can be used at least in part to fund a client’s retirement lifestyle. It is essential to also remind clients life insurance enables them to spend a portion of their income confidently while they’re living, knowing, when they die, the life insurance benefits will serve to safeguard future generations.

While some cultures place a high value on leaving a legacy behind for beneficiaries, others may emphasize other aspects, such as caring for aging parents who have extensive medical needs. Although life insurance may be the perfect addition to one financial plan, another client might have needs in other capacities, such as a long-term care insurance product. Every culture is different, and as advisors, our job is to understand these differences and use them to make the best possible suggestions for our clients.

Understanding the objectives of our clients remains a vital step in the financial planning process. We must be willing to recognize the unique needs of each client and educate them about the benefits of all products we recommend to help them reach their goals. Appealing to diverse markets is deeply rooted in this critical process and will become imperative in the coming years when working with a multitude of cultures and ethnicities.

For more from Philip E. Harriman, see:

How a Life/LTC Combo Could Save Your Client’s Retirement

Baby Boomers and the New American Dream

Defy popular perception: Overcome the life insurance taboo


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