This is not a boring subject

Not very long ago, I welcomed a couple of clients into my office: young parents and successful entrepreneurs, seasoned investors. I present them with different scenarios of retirement plans and, above all, financial independence.

Everyone is excited, especially since financial success smiles on them!

Then comes the time to talk about insurance. If a tool existed to measure the enthusiasm of an audience, it would not have detected anything, I swear to you …

A financial planner should talk about finances and wealth management, but the job also requires addressing insurance and risk management issues. In the eyes of my clients, this is probably the most boring subject.

At the beginning of my practice, I made this coldness a little personal, but I understood over time that my perception of these financial tools differs a lot from theirs (and that it is not my communication skills that are involved!).

Because while I know how much fun it is to help clients reach their targets, I also know that their most valuable asset is often the most overlooked: their ability to generate income.

As long as one has not achieved financial independence, all the dream scenarios remain hypothetical (and often conditional on good health).

And unfortunately I have seen that an uninsured estate can leave loved ones in need. People who dream of insurance are often those who are no longer entitled to it …

Survive when something goes wrong

Let’s agree on one thing: far from me the idea of ​​wanting to scare you. There is always a way to organize to survive if something goes wrong.

However, on social media, I regularly see fundraisers to help families whose members are struggling with a health problem. Each time, I can’t help but sympathize, but also think that critical illness insurance would have been a game-changer.

And even when you have a well-heeled family network, it’s not a pleasure to ask for charity, especially if your loss of income is likely to last over time. Disability insurance makes it possible to avoid this situation.

Sometimes emotional

Talking about insurance can sometimes be as emotional as discussing politics or religion as a family. “Insurance costs too much”, “insurers are all …”: the murderous sentences, I have heard them all.

“My parents left me nothing and I made arrangements”, too. This is my favorite, because above all it denotes a misunderstanding of the usefulness of life insurance.

Yes, it is possible to be over-assured. I often see clients with poorly adapted or unnecessary protections. Or even a permanent life insurance with costs too high for their needs and their budget. But we must not confuse everything. If you have significant assets, life insurance MUST be viewed as a tool for diversification. If you can achieve your financial goals while optimizing your estate, why hesitate?

The next time your financial planner talks to you about insurance, be nice to him and listen to him with interest. The amount of options to analyze in risk management can be overwhelming, but once the ordeal is passed, there is real satisfaction, I can tell you from experience.

Too much or not sufficiently insured?

Do you think you are too insured? Or not enough? Write to me and I can present my recommendations to you in a future case study. I will also answer the following questions in future columns:

Wouldn’t it be better to invest more in my investments than in insurance?

Is life insurance profitable only for the succession ?

Why do I have the impression that insurers never “pay” in the event of claim ?

Some advice on personal insurance

Do not subscribe to no life insurance or disability related to a loan.

Analyze your needs with the help of a professional.

Take the time to see if your current insurance match your needs.

Shop, regardless of the type of insurance! The services ofan independent broker who knows the many products on the market can prove invaluable.

Ask all the questions you need to understand the protection offered by a new policy.

For questions of insurance of persons held by a company, surround yourself with competent tax professionals.

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