Earlier this year, there was a brief moment when it looked as if COVID-19 would be just a small wrinkle in time. Very few of us anticipated the months of stay-at-home orders — and, for many, unemployment — that would become our new collective reality, with no end in sight.
As a life insurance agent, you know how important it is to have a proper end-of-life plan in place, but do your clients?
(Related: Estate Planning, COVID-19 and Grandparents)
When having conversations with your clients about life insurance or estate planning during this difficult time, you may find that many of them are in need of a financial reset, or at least a checkup.
You know they need to do many things to get themselves on the right track. Where do they start?
Here are four good first steps to recommend, to help them start prioritizing their emergency and end-of-life planning.
1: Set A Target Savings Goal.
The very first step in establishing a solid financial wellness plan is to set a goal of how much to put (and keep) in a savings account. Your client may have some savings set aside, but is it really enough?
Remember however, that a savings goal isn’t a one-size-fits-all concept. The target number should depend on how large your client’s family is, how many people are financially dependent on them, and what kind of lifestyle they wish to maintain.
Different financial experts have conflicting recommendations on how much money a person should have saved, and by what age. Some recommend that a savings target is a function of a person’s age and income. For example — have one year’s worth of income saved by the time you are 30, and five times your income saved by the time you are 50.
However, the point is to have enough money tucked away to be able to comfortably live in retirement. The secondary part of this step may be helping your client decide where to invest these savings, such as in a tax-advantaged retirement savings account or the stock market.