How to avoid giving bad advice to your clients about life insurance

Life insurance is the foundation of our finanacial portfolio. It is the only insurance product for which we are guaranteed to make a claim (assuming we keep the policy in force.) It covers the most disasterous of all risks – the death of a loved one / financial provider. And it is extremely cost-effective – each dollar of benefit literally costs pennies.

Because it is so integral to financial security, financial advisers will focus on this product when consulting with their clients. Planners, bankers, attorneys, accountants, and coaches all seek to make sure proper coverage is in place. Here are three pitfalls to avoid when doing so:

Don’t play insurance expert.

When you recognize that your client needs professional help, bring in a life insurance expert. Stay within your area of specialization. Let your client get the best service from a specialist in this area.

Don’t have a product bias.

If your client asks for your opinion, keep their needs front and center. Different people have needs for different insurance products. Just because you may prefer term – or permanent – does not mean the product is right for them.

Remain supportive.

Once you refer your client to a life insurance expert, follow up. Check on their satisfaction throughout the process of purchasing a policy. Your client trusted your judgement in making the referral. Confirm their trust remains well-founded.