Partnering in Insurance
Time is the most valuable asset we own, especially in this industry. If you’re like us, an eight-hour work day is absolutely unachievable with the amount of work on our plate. For this reason, we rely heavily on our strategic partnerships to manage part of our heavy workload – and you should too.
Offloading Contingency Planning
In most cases you’re simply facilitating the insurance buying process through a proxy (like the IFP Insurance Group), so the weight of the world isn’t on your shoulders. However, that’s just one example of teaming up to make life easier (and potentially more profitable). Partnering cuts down on your time investment, provides a way for clients to minimize the impact of certain life events on their assets, and more, so you can focus on getting more business.
Robo Is Not Your Biggest Threat
While financial planners are on the front lines battling robo-advisers, the life insurance industry is enjoying a (mostly) robot-free environment. Clients need a professional to explain insurance plans and how they benefit their financial health, while also generating revenue for your firm. They might use an online insurance provider for other products, but life insurance requires a bit more explaining.
Bigger Growth in LTC
Partnering often involves stepping out of our comfort zone to find even greater comfort elsewhere. In insurance, this means we need to embrace a friendship with long-term care insurance providers. For instance, we know a financial advisor on the West Coast with 11 long-term care clients paying 100 cents on the dollar for their care. Their practice AUM is getting drained for around $2 million a year due to these cases. This is directly damaging the value of the practice in addition to their clients’ net worth — it’s a lose-lose situation. LTC insurance is a risk management strategy that could save you and the client money in the long run.
Teaming Up for a Succession Plan
Retirement seemed so far away, didn’t it? Well, building a solid succession plan means finding a partner (if you haven’t already). Passing on the firm is a great way to generate some addition retirement income and get you to that beach without a care in the world. Now that we’re all living longer, healthier lives, it’s time to plan for the future where we aren’t working and the young pups have taken the reigns.
Remember, insurance isn’t the boogeyman. It’s just another revenue stream and a hedge against future risk for your practice and clients. Stop being afraid of it and grab up those partners to help you generate more revenue while making your life easier.
Have questions or comments? Email me at [email protected].