Your financial team, Pt. 2

By Steve Kobrin

The Firm of Steven H. Kobrin, LUTCF


Let's take a look at a scenario that calls for close cooperation between the financial planner and the life insurance broker. When a new client approaches us, we determine an initial rough estimate of the price of life insurance. This allows the client to realistically evaluate his financial situation in advance.

If the initial cost estimate is within the client's budget, then he can confidently engage in the process, knowing his time and effort will not be wasted. No problems here.

On the other hand, if the initial cost estimate is above the client's budget, then he has the advance opportunity to identify additional sources of premium funding or to consider the option of providing his beneficiary with a reduced life insurance benefit.

In both cases, the client's financial planner plays a key role because he knows the "big picture," the full balance sheet.

If the planner can identify income-producing assets that will become available for use, then the client knows he can purchase a policy with the full face amount desired.

If no assets will become available, then the planner can identify additional financial resources to supplement the life insurance benefit, and the client knows he can purchase a policy with a reduced face amount.

This is a classic scenario in which the planner and the life insurance broker can cooperate and help the client make an essential purchasing decision with regards to his financial portfolio.

*For further information, or to contact this author, please leave a comment and your e-mail address in the forum below.