4 reasons advisors should be using financial planning to help clients address all their insurance needs

Financial advice is in the spotlight.

A growing number of new mobile banking apps and online investing tools have placed financial advice at the centre of a much larger conversation about the value of advice. The financial media and social networks are changing the expectations of people when dealing with their financial advisors.

The value of good financial advice and the role of financial advisors in delivering it is top of mind for more and more clients. Financial planning can play a pivotal role in helping financial advisors provide the best advice to their clients, address more of their insurance needs and engage them in life-long service relationships.

In this article, I will highlight four ways that advisors can use The Razor to deliver more value and help clients see the big picture.

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1. Financial planning increases client engagement

A financial plan is no longer viewed as merely a “nice to have” for clients. Financial planning needs to be a necessary part of the insurance needs analysis you conduct for your clients, if you expect them to fully engage in all the services that you offer.

The Razor helps you do this by making the financial planning process client-friendly, interactive and easy for advisors. A typical financial plan analysis using The Razor takes about the same amount of time as a traditional insurance needs analysis. But unlike a typical insurance needs analysis, The Razor captures more information and about your client’s overall financial situation and helps you identify gaps in the client’s coverage that you can help to fill.

2. Save time with fast and efficient calculations

The Razor uses proprietary calculations to find the best solutions to your clients’ everyday financial problems. You start by engaging your client in meaningful discussions and needs analysis, then The Razor helps you quickly analyse any client situation to identify any gaps or shortfalls in coverage that should be discussed further with the client.

By focusing questions during the initial discovery meeting on the most relevant information, analysing the client’s situation in real-time is transformed from a long, complex process into an easy 15-minute activity that you can perform in all types of client meetings.

3. Address all your client’s insurance needs in one financial plan

Helping clients protect loved ones and ensuring that their plans for retirement are not at risk due to unexpected health problems is an important part of what insurance professionals do for their clients.

The Razor’s proven risk management methodology addresses all of your client’s insurance needs, including:

  • Life insurance for family security, wealth creation and estate planning;
  • Disability insurance for income replacement and retirement preservation;
  • Critical Illness insurance for lifestyle protection;
  • Long-Term Care insurance for retirement and estate preservation.

4. Help clients find the money

Recommending the right types and levels of coverage to your clients is only part of your job. Helping clients find the financial resources needed to pay for the coverage they need can sometimes be difficult, especially in these tough economic times.

The Razor’s interactive interface makes it easy to let your clients discover for themselves new ways for them to save money so that they can afford the right type and amount of coverage to protect their loved ones.


 

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It’s Not Just About Retirement Planning

I recently attended a presentation to a small group of financial planners leading up to on our upcoming release of version 4 of The Razor, our 4th since introducing it in 2012. In that meeting, we previewed a number of improvements and features the new version will offer financial planners to better engage clients in the financial planning process.

Listening to advisors in that presentation and a number of others over the past month have taught confirmed for me two things:

First, we nailed it. The feedback received after each meeting is a clear signal to us that we understand the needs of financial planners and we have delivered what they want.

Second, we failed in our most important message to financial planners. It’s not just about retirement planning!

Financial-planning-quote-Dave-Faulkner-Razorplan

On the surface, The Razor may appear to be just another retirement planning software tool. But The Razor is different; it’s not just about retirement planning, it’s about engaging the client to find what really matters so that the advice provided will be valued.

The Value of Clarity

All planning engagements must provide value to both the client and the advisor. The client sees value only when they feel more positive about their financial situation, while the advisor sees value only when the income to be earned is sufficient enough to allow for the amount of work that will be provided.

The advantage of The Razor is that it delivers value to both the client and the advisor equally and it does it all in one meeting with the client. Also, it doesn’t matter which sector of financial services the advisor works in, The Razor is effective for both investment and Insurance planning engagements.

Investment Planning

The Razor will identify potential problems with current savings and asset allocation strategies by estimating capital requirements based on the client’s objectives and return assumptions. It does this by automatically answering the most common questions clients have:. “How much can I spend?” “When can I retire?” “How much do I need to save?” and, “What rate of return do I need?”

Insurance Planning

The Razor compares the client’s income goal to the maximum sustainable income, creating opportunities to allocate excess cash flow to estate planning strategies. The Razor then estimates capital needed for income replacement, estate liquidity and terminal tax funding in addition to disability, critical illness and long term care needs.

Financial planning should be more about interacting with clients and less about crunching numbers. Value is not delivered by entering data into financial planning software and clicking the “Calculate” button. Advisors add value by helping clients understand what really matters and exploring the options available to them.

~ Dave Faulkner

In the real world, simplification is valued over complication. The Razor embraces simplicity and automation, without sacrificing precision, helping to engage clients interactively in the financial planning process.

To learn more, visit Razorplan.com and check out our new and improved version 4 software or register today for a FREE 30-day trial of The Razor.