I started my company in the summer of 2001, and since that time I have always measured my growth by the amount of assets I manage. This includes both assets under management (AUM) through my RIA firm as well as fixed annuities. I speak at agent conferences around the country, and many of the advisors I speak with also focus almost exclusively on assets captured.
However, several years ago I began to realize I was overlooking a very critical need for my clients; and by not servicing this need, I was not only missing out from additional profit centers, but I was also allowing other advisors a potential foot in the door.
I was focusing almost entirely on the investment, income and estate planning needs of my clients. While I feel very confident that I’m doing everything I can to help manage the investment risks of my clients’ portfolios, I was missing two critical risks:
- The risk of one spouse significantly outliving the other.
- The risk of long-term care.
I believe that the insurance industry has done a fantastic job in meeting these needs. Of particular interest to my clients are asset-based hybrid products which combine many of the benefits of both life insurance and long-term care insurance.
I like the idea of asset-based products because they continue to be an asset on the client’s balance sheet. While it is primarily an insurance asset, some of these hybrid products provide a cash asset as well. But, either way, if the client holds onto the policy, it can provide some kind of benefit either for long-term care, at death, or both.
Peace of mind