Trying to explain many benefits of insurance to wealthy clients sometimes involves overcoming the stereotypes the affluent have around the product, one advisors cautions.
Trying to explain many benefits of insurance to wealthy clients sometimes involves overcoming the stereotypes the affluent have around the product, one advisors cautions.
“Getting over the stigma of the word insurance is something that is needed in the affluent market,” said Steve Santoro, Certified Financial Planner & Investment Representative of Santoro Financial Group. “Typically people are positioning it as an insured asset class or alternative fixed income strategy, or things of that nature. They’re not saying the word insurance because that’s not the only use for that client.”
Wealthy clients tend to view insurance as synonymous with a catastrophic event. “However, for the affluent market that is not why it is used. The question is changing the perception of the product,” said Santoro.
It’s led to advisors changing the way they position insurance to this demographic.
The trouble can be making sure clients see the value of the numbers. “I have a saying, ‘If there’s data let’s go with the data. If we’re going to go with opinions let’s go with mine,’” said Santoro. “I’m joking with them but when you do a comparison,” they quickly see the value when they’re growing their money at four or five per cent and being taxed at 50 per cent.
“People who make decisions based on fact get it and then you just need to figure out how to fund it, where’s the best place to pull in capital,” said Santoro. “Once you sit down and show them sometimes you get, ‘This looks too good to be true.’ When you show them they are excited because it helps them accomplish their goals.”
“Getting over the stigma of the word insurance is something that is needed in the affluent market,” said Steve Santoro, Certified Financial Planner & Investment Representative of Santoro Financial Group. “Typically people are positioning it as an insured asset class or alternative fixed income strategy, or things of that nature. They’re not saying the word insurance because that’s not the only use for that client.”
Wealthy clients tend to view insurance as synonymous with a catastrophic event. “However, for the affluent market that is not why it is used. The question is changing the perception of the product,” said Santoro.
It’s led to advisors changing the way they position insurance to this demographic.
The trouble can be making sure clients see the value of the numbers. “I have a saying, ‘If there’s data let’s go with the data. If we’re going to go with opinions let’s go with mine,’” said Santoro. “I’m joking with them but when you do a comparison,” they quickly see the value when they’re growing their money at four or five per cent and being taxed at 50 per cent.
“People who make decisions based on fact get it and then you just need to figure out how to fund it, where’s the best place to pull in capital,” said Santoro. “Once you sit down and show them sometimes you get, ‘This looks too good to be true.’ When you show them they are excited because it helps them accomplish their goals.”
