Russ Prince: Why Life Insurance Agents Are Becoming Wealth Managers
April 24, 2019 by Russ Alan Prince
There was a time when life insurance agents provided life insurance, investment advisors provided money management, accountants did tax work, attorneys did legal work, and so on and so forth. However, for certain types of wealthy clients that time has passed. Over the past few decades, functions have been melding when it comes to serving wealthy clients.
Professionals like accountants or life insurance agents, who have strong client relationships, leverage that proximity and trust to help them expand into other service areas, provide more comprehensive solutions to their clients and develop a more profitable business model. In essence, it is the process of becoming a wealth manager.
The demand from the wealthy and the profitability of wealth management are motivating many aligned professionals to adopt the welath management model. Wealth management is the consultative process of meeting the needs and wants of affluent clients by providing the appropriate financial services and products. Wealth management, done well, is about problem solving. It addresses the often-interconnected concerns and issues of wealthy individuals and families and delivers integrated financial solutions. It is a holistic orientation that is in high demand by the affluent.
Strong client relationships are important for all wealth managers and mandatory for those who are new to the business model. Building rapport, in combination with broad-based and insightful assessments, makes it easier to spot opportunities for better, more inclusive service and problem solving.