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Chelsea Konst
life insurance awareness month and financial advisors

A Guide to Life Insurance Conversations

While Life Insurance Awareness Month (September), may be ending, that doesn’t mean this sometimes misunderstood financial planning resource is any less important. In fact, this multifaceted financial tool can offer security, peace of mind, and a legacy for your clients and their loved ones, not just a death benefit. And since clients rely on financial advisors to provide well-rounded guidance, it’s important to debunk common life insurance misconceptions and help your clients understand its value. Here are some key strategies:

Challenging Common Misconceptions

According to the 2021 Insurance Barometer Study, 36% of consumers say they plan to purchase life insurance within the next 12 months, Yet there are 102 million uninsured and underinsured Americans who believe they need to buy life insurance or increase their coverage. 1

So, what’s preventing people from purchasing life insurance? Let’s dive into the most common objections and discuss how financial professionals can combat these concerns.

1. Life Insurance is Expensive

“If life insurance were free, we’d all have it,” said author and financial advisor Walter C. Young III, MBA, RICP®, in an episode of the Rainmaker Multiplier On-Demand podcast. Many clients acknowledge the need or desire for life insurance but assume it is too costly. That’s why it’s essential to educate clients on the true cost, which for many, can be quite affordable.

For example, as of September 2023, a 10-year, $250,000 term life insurance policy for a healthy 40-year-old man averages to just $23 per month.2 That’s significantly less than most monthly phone bills today or even a week’s worth of food delivery. The nationwide average phone bill for one person is around $166/month4 and the average American spends $37.28 on food delivery every week.5 Putting this cost into perspective for clients may help convey its affordability. With that being said, every financial situation is different. You should never make assumptions and it’s recommended you explore different policy options to find the right one for your client’s budget and needs.

2. “I Don’t Need Life Insurance”

Some clients think life insurance is unnecessary, especially if they’re young and healthy. In the same episode of the Rainmaker Multiplier On-Demand podcast, Sam Doerr, Vice President of Life Insurance Sales at C2P, spoke to this misconception. She clarifies why she values living benefits for the peace of mind they provide just as much as the death benefit. “I’m not necessarily so worried that I’m going to die really young. I’m more worried about, ‘I’m going to live so long, and something will happen along the way and I’m not going to be able to afford it,’” Doerr said. “Along with taxes, of course, planning for children’s futures, college planning, all of those are huge reasons for me [to purchase sufficient coverage].”

That’s why advisors should emphasize to clients that life insurance isn’t just for the elderly or the sick — it’s a crucial financial tool for anyone with dependents or financial obligations.

3. Life Insurance = Death Benefits

Life insurance is most known for paying out death benefits after a loved one passes but that’s not its only function. In fact, its function changes throughout life. When you’re young, life insurance is about protecting your assets and income. As you age, it becomes less about protecting your income and more about planning your retirement. It helps safeguard a spouse by allowing them to choose the highest withdrawal rate, like a pension maximization plan.

In the podcast episode, Young went on to explain how life insurance can bolster retirement income and the impact: “Life insurance frees us from having to have that teeter-totter talk with ourselves as to every dollar that I want to use is a dollar that I don’t get to leave to my children. And so, the death benefit really allows us to be free from that conflict and say, ‘I can spend every last dollar that I have knowing that I will still leave a legacy that I planned in the end.’”

Life insurance for families
How Financial Advisors Can Help Their Clients

1. Start the Conversation

First, attempt to overcome any objections, the most common ones already outlined above, to engage your client and clarify where they stand regarding life insurance. Then, explain the fundamentals of life insurance and the types of coverage they can take advantage of if they don’t have a solid understanding. If they do have a decent base knowledge to build on, determine your clients’ needs, and recommend insurance products that meet them.

2. Educate Every Step of the Way

Many clients underestimate the value of life insurance’s ability to supplement lost income of the loved one who has passed, which can help surviving family members maintain their lifestyle. It is also critical to explain life insurance truthfully. As an advisor, you should tell clients that while it won’t guarantee their spouse doesn’t need to work if they die first, it does provide monetary help the spouse would have received while the client was living. This allows their spouse to continue living in the same manner they’re accustomed to, and includes income they may have factored into their retirement plans.

3. Assess Individual Client Needs

A good rule of thumb is to fact-find first and recommend products that fit later. Start by understanding your client’s unique financial situation, goals, and obligations. Then, conduct a thorough needs analysis to determine the appropriate amount and type of coverage. Many states offer an online calculator to figure out the precise amount of income and debt coverage required. An important point Doerr emphasized in the same podcast is that that it’s better to have too much insurance than not enough, and she encourages clients to overestimate their coverage needs.

4. Review and Adjust Over Time

Life insurance needs can vary over time due to factors like marriage, children, or changes in financial circumstances. Another popular complaint about life insurance is that it doesn’t pay out as expected, a common cause of this is a lapse in coverage. Your client’s policies need to be up to date and accurate to truly benefit them and prevent any disruption in coverage when they may need it most. It’s best to regularly review and adjust policies as needed to ensure they are still in your client’s best interest and represent their current situation.

5. Help Clients Follow Through

According to Annuity.org, 33% of women report needing life insurance but don’t own a policy, and 29% of men report needing life insurance but don’t own a policy.3 Doerr agrees that a significant portion of the population that plans to buy life insurance probably won’t. She also finds lack of motivation and understanding to be partially responsible for an absence of coverage. “I think that it’s our job to guide them through that. They may plan to, and they should. So, I think that that’s probably just inactivity, really.”

The True Value of Life Insurance

Life insurance is more than just an expense: with the right strategy, it can be an asset. As a financial advisor, you can demystify life insurance and help your clients understand its true value. At C2P, our life insurance professionals are dedicated to guiding our advisors to better serve their clients. We help customize solutions through our IMO, so clients can make informed decisions that benefit their families and beneficiaries in the long run. To learn more about how C2P can help you as a financial advisor, schedule a 20-minute call today.

Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

Citations

1. https://www.limra.com/en/newsroom/news-releases/2021/2021-insurance-barometer-study-reveals-common-misconceptions-that-prevent-americans-from-getting-life-insurance-they-know-they-need/

2. https://www.moneygeek.com/insurance/life/rates/#:~:text=Expert%20Advice-,The%20average%20cost%20of%20life%20insurance%20is%20%2423%20per%20month,monthly%20premium%20increase%20to%20%2445.

3. https://www.annuity.org/life-insurance/statistics/#:~:text=33%25%20of%20women%20report%20needing,compared%20to%2042%25%20of%20men.

4. https://www.self.inc/blog/how-much-is-phone-bill-for-one-person

5. https://www.nasdaq.com/articles/the-average-american-spends-this-much-per-week-on-food-delivery

 

 

 

AVAILABLE NOW: “The Bucket Plan: Protecting and Growing Your Assets for a Worry-Free Retirement” Audiobook

With newly updated content for 2023, the highly anticipated audiobook became an Amazon instant best-seller during pre-order

CLEVELAND, Ohio, September 28, 2023 – Jason L Smith, a nationally recognized speaker, financial planner, author, coach, and entrepreneur, announces the release of the new audiobook version of his best-selling book “The Bucket Plan: Protecting and Growing Your Assets for a Worry-Free Retirement,” now available for purchase on all major audiobook platforms, including Audible. With newly updated content for 2023, the audiobook and revised print edition provide some of the latest strategies to strategically position assets to help mitigate the impact of financial risks and dangers that can often occur unexpectedly in retirement.

The release of this highly anticipated audiobook, which achieved instant best-seller status on Amazon during its pre-order period, comes on the heels of the first edition print version being named to U.S. News and World Report’s list of The Best Retirement Planning Books for 2023. It was the only book on the list that describes a financial planning process.

“In 2017, when I first authored this book, I was inspired to share the true-life story of The Bucket Plan and the impact it had on my clients’ family. The book illustrates the significant impact proactive planning can have, not only on the success of one’s financial future but also on the peace of mind it can bring to their spouse and family when an unexpected death or disability occurs,” said Smith. “To achieve an instant-best seller status already is a testament to how invaluable and in-demand this information is. I am thrilled to expand access to this content by launching an audiobook version, providing families worldwide with the education and tools to construct an even more successful financial future.”

“The Bucket Plan: Protecting and Growing your Assets for a Worry-Free Retirement” is based on a true story with retirement planning explained through the eyes of Jerry and Irene. It is designed to educate current and future retirees on a simple yet structured approach to minimize and possibly even eliminate certain risks in retirement, showing readers it is possible to enjoy their golden years with less worry about the stock market and interest rate volatility or the potentially devastating hazard of sequence of returns risk. During its launch in 2017, the book also achieved best-seller status in both the Retirement Planning and Wealth Management categories on Amazon. The newly updated content for the 2023 version includes:

  • Insight on the increased RMD age that was ushered in by the SECURE Act 2.0
  • Added the Concerns & Priorities Worksheet as a step to identify factors holding someone back from their retirement goals
  • Revised the Cash Flow Assessment step to include Budgeter and Income Gap Assessment tools to determine any gap or surplus in retirement
  • Updated documents and images throughout the book to reflect the latest Bucket Plan tools

“In an ever-evolving financial landscape, the relevance of this audiobook resonates more powerfully than ever before,” added Smith. “This year’s accolade from U.S. News and World Report underscores the enduring value of this work, and as we continue to navigate an era marked by economic shifts, market volatilities, and regulatory changes, this content remains an indispensable guide, helping Americans across the country take on retirement planning with confidence.”

The audiobook version of “The Bucket Plan: Protecting and Growing Your Assets for a Worry-Free Retirement” is now available for purchase through Audible. For more information, visit TheBucketPlanBook.com.

 

About the Book

The Bucket Plan: Protecting and Growing Your Assets for a Worry-Free Retirement provides a unique perspective on how to plan for a financially secure retirement, as told through a real-life story of a couple navigating their own retirement plans. The Bucket Plan® planning process is a three-bucket philosophy that works to compartmentalize money into the now, soon, and later years of retirement and create a plan to provide a reliable and steady income for what could be a 30-year retirement or more. Families from all financial backgrounds and experiences can benefit from this practical approach to mitigating market, interest rate and sequence of returns risks while hedging against inflation while working to achieve both security and growth of their retirement savings.

About the Author

Jason L Smith is a nationally recognized speaker, financial planner, best-selling author, coach, and entrepreneur. As a second-generation advisor, he founded his holistic wealth management practice, JL Smith, in 1995 to provide clients with holistic financial planning services that align investments, insurance, taxes, and estate planning into one comprehensive, coordinated plan. With the overriding goal of improving the lives of American families through holistic financial planning, Jason founded Clarity 2 Prosperity, a financial training, coaching and IP development organization to train and mentor other financial advisors, where he currently serves as founder and CEO. Jason’s Bucket Plan philosophy inspired a children’s book designed to teach kids responsible spending, saving, and earning principles, Days Can Be Sunny for Bunnies and Money. In 2015, Jason was recognized as one of InvestmentNews’ 40 Under 40, and has been named to Crain’s Notable Wealth Managers list. He is often cited in industry and national media and he’s been featured on television discussing the importance of providing holistic financial services.

 

* Comparative assessments and other editorial opinions are those of U.S. News and have not been previously reviewed, approved or endorsed by any other entities.  Jason L Smith and/or C2P did not pay for this recognition or to be a part of the assessment.

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C2P receives Northcoast 99 Great Workplace Award

C2P Honored with 2023 NorthCoast 99 Great Workplace Award

Accomplished firm C2P and its model office JL Smith celebrate well-deserved recognition as a great place for top talent to work. 

CLEVELAND, Ohio, September 1, 2023 — C2P, a holistic financial services company that aims to simplify financial planning for advisors and the clients they serve, has been recognized as a great workplace for top talent in Northeast Ohio area by receiving the 2023 NorthCoast 99 award. 

Founded and produced by ERC, NorthCoast 99 is an award program that annually honors 99 exceptional Northeast Ohio workplaces that prioritize top talent attraction, development, and retention. Winners are evaluated and selected based on criteria including organizational strategy, talent acquisition, employee well-being, engagement, rewards, and diversity and inclusion efforts. 

The NorthCoast 99 recognition is a testament to C2P’s unwavering commitment to creating an outstanding work environment that fosters innovation, growth, and collaboration. This achievement reflects the company’s dedication to a “people first” mentality, established by one of their core values of the same name. C2P believes that providing its employees with a supportive and enriching workplace culture that values their contributions and happiness is critical to their success.  

“It is a tremendous honor for all of us at C2P to receive the 2023 NorthCoast 99 award,” said Pablo Terra, Chief People Officer at C2P. “We truly believe every team member at C2P, no matter what role they play, have all helped us achieve this award. “This is a huge accomplishment for all of us, and we will never stop trying to get better and better every day.” 

The NorthCoast 99 award is a prestigious recognition in the region and signifies C2P’s dedication to being an employer of choice. It reflects the company’s continuous efforts to provide employees with opportunities for growth, competitive benefits, and a dynamic workplace environment. 

Adding to the celebration, C2P’s model office, JL Smith Wealth & Tax Planning, a comprehensive financial planning services firm, also founded by C2P’s CEO, Jason L Smith, has been honored with the same esteemed award. This dual recognition underscores C2P’s commitment to consistently providing an outstanding workplace experience for its employees across all operations. 

“We are deeply honored to be named a 2023 NorthCoast 99 Award winner,” said Jason, Founder and CEO of JL Smith and C2P. “This recognition is proof that creating an environment that empowers employees to excel — and have a great deal of fun in the process — is key to any business’s success and standing.”

“Through our collaborative efforts as a team, we can provide impactful solutions that enable families to attain true prosperity.” 

To celebrate the region’s winners, the 25th annual invitation-only awards event will take place on September 21, 2023, from 5 – 8 p.m. at the Hilton Cleveland Downtown. 

For more information about C2P and its commitment to excellence in the financial advisory industry, please visit https://c2penterprises.com/ 

 About C2P  

C2P is a holding company comprised of four platforms, each designed to simplify holistic financial planning for advisors and the clients they serve. Driven to provide products and solutions in the best interest of every client, C2P offers education, training, resources, and tools to meet a client’s unique financial situation, along with access to an array of investment and insurance vehicles to help advisors accomplish their goals. C2P is committed to upholding fiduciary best practices and raising industry standards by offering a higher quality of financial planning services to families worldwide.

Investment advisory services are provided by C2P Capital Advisory Group, LLC d/b/a Prosperity Capital Advisors, LLC (“PCA”) an investment adviser federally registered with the Securities and Exchange Commission (SEC).) 

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Emotion in financial advising

Beyond Numbers: The Power of Emotion in Financial Advising

In the world of financial planning services, numbers and strategies often take the spotlight. However, advisors sometimes overlook an essential element to a thriving practice – emotional connection with clients.

Whether it’s to win new business or make a lasting impression on an existing client, when you establish an emotional connection with your clients, you can transform your firm and develop a reputation for being someone they can trust.

Clients Value Trust as Much as Expertise

When it comes to financial decisions, most are deeply personal and tied to life goals, dreams, and real-life concerns. Current and prospective clients not only seek your expertise when coming to you for advisement, but also a sense of security and understanding. Establishing emotional connections helps you empathize with their unique circumstances, fostering trust and long-term relationships. And if there’s one thing successful financial advisors know, it’s attracting and retaining clients is all about relationships and the value you bring to them.

Tips to help financial advisors emotionally connect with clients:

Clients want to feel truly taken care of and cared for. Here are a few key strategies you can start using today to begin developing an emotional connection with your clients:

  • Active Listening: Pay attention not just to the numbers, but to your clients’ personal stories, goals, and fears. This helps you offer relevant solutions and shows that you genuinely care.
  • Personalized Approach: Treat each client as an individual. Remembering details about their lives and referencing them in conversations demonstrates your commitment to their well-being.
  • Open and Transparent Communication: Share your experiences, both successes and challenges. This humanizes you and encourages clients to be vulnerable and honest.
  • Consistent Follow-Ups: Regularly check in with clients beyond financial updates. Inquiring about personal milestones and challenges shows that you’re invested in their overall success.

One easy way to put all the following strategies into action is to implement The Bucket Plan ® Process.

This financial planning process offers financial advisors a powerful tool to emotionally connect with their clients by focusing on their clients’ life goals, needs, and aspirations. By categorizing assets into specific “buckets” for different time horizons now, soon, and later, advisors create a tangible representation of their clients’ financial journey.

Now, Soon, and Later buckets of The Bucket Plan®
The Now, Soon, and Later buckets of The Bucket Plan® retirement planning process.

As advisors help clients allocate their resources into these buckets based on their unique circumstances, they demonstrate a keen understanding of what their clients’ money means to them on a deeper level in the present and the long run. This process allows advisors to have meaningful conversations about their clients’ values, fears, and aspirations, creating a sense of trust and a good rapport.

Additionally, the Bucket Plan® process emphasizes ongoing communication and adjustments, reinforcing the client-advisor relationship. Financial advisors continuously refine the allocation of resources in each bucket, demonstrating their commitment to aligning financial strategies with clients’ evolving life stages and goals. This proactive and personalized approach can not only ensure financial success but also help clients feel understood and supported on their financial journey.

Practical Ways to Add ‘Heart’ To Your Existing Process:

Financial advisors everywhere can find opportunities to make an emotional connection with their clients in plenty of their existing processes. For example, while it’s considered standard practice in estate planning to capture and store important information, like clients’ financial statements, arrangements, household legal documents, and more, C2P-trained advisors have used the Family Estate Organizer to bring incredible value to the client and their beneficiaries.

A recent episode of The Bucket Plan® On-Demand Podcast describes how The Family Estate Organizer — a key deliverable in the Bucket Plan® process — has helped advisors nationwide to not just organize their clients’ assets and wishes but significantly strengthen their client relationships.

Personalize Your Client Experience

One advisor featured in the same podcast decided to take this packaged deliverable a step further to make an even more meaningful connection with his clients. Dean Thurman, Founding Partner of InvestWise Financial and White Glove, put his own spin on the Family Estate Organizer including all the financial essentials of the traditional C2P tool, but added additional content. His office describes this version as the Family Estate Organizer, “with a heart.”

His leather-bound binder features the client’s name laser-etched into the front and the sentimental elements included are sections for personal information and a special envelope with instructions for who will open it in the event of a loved one’s passing. It also includes a place for a favorite photo, words of wisdom, and life history complete with memories, traditions, and recipes.

Thurman’s firm provides these binders to every new client and claims it helps his business stand out and serves as a natural referral tool. “They brag to their friends about their beautiful family organizer,” Thurman said, which can eventually lead to more referrals.

Even further, Thurman used it recently to facilitate an important introduction with his existing clients and a new advisor who would be taking over their business. He says that going over the binder together left the client and the new advisor “in tears” and helped establish a sense of trust in a single appointment that would usually take four or five meetings to establish.

Final Thoughts

In the financial services industry, connecting on an emotional level can be the differentiator that propels your business forward. Building trust, understanding your clients’ aspirations, and providing tailored solutions is proven to serve your client and business alike. By prioritizing these connections, you’re not just managing finances – you’re helping individuals achieve their life goals and secure their financial futures.

Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

C2Ps’ Innovations and Leadership Named 3x Finalist for ThinkAdvisor LUMINARIES Class of 2023  

Recognized for bringing impactful solutions to financial advisors, C2P and its leaders continue to transform the industry through thought leadership and education

 Cleveland – July 25, 2023 – C2P Enterprises (C2P), a collective of brands designed to simplify financial planning for advisors and the clients they serve, is pleased to announce that the company’s latest training course, created by Jason L Smith, Founder and CEO, is a finalist for ThinkAdvisor’s LUMINARIES Class of 2023, in addition to Dave Alison, CFP®, EA, BPC, President and Founding Partner and Matt Seitz, Chief Marketing Officer and Partner, who have also been named finalists for individual categories. Now in its third year, the LUMINARIES awards program highlights how top-performing industry participants — both firms and individuals — produce meaningful results through efforts that matter most to financial advisors.

C2P, which has been named a finalist for the “Thought Leadership & Education” category for firms, recently launched its Advisor Career Path & Compensation program as a critical turnkey resource for succession planning and cultivating the next generation of advisors. The live two-day virtual training course is aimed at helping advisors recruit, reward, and retain top talent and is designed for advisors who are the sole rainmaker of their practice and are looking to build a self-sustaining business.

“I am incredibly proud of our entire C2P team for these well-deserved recognitions,” said Smith. “With more than one-third of all financial advisors expected to retire in the next decade, we recognized an incredible gap in our industry that needed to be solved. With the Advisor Career Path & Compensation program, we have successfully developed a transformative program that enables advisors to enlist top talent, grow their businesses and build an effective succession plan for their practices,” continued Smith. “I also want to recognize the fantastic leaders we have in Dave and Matt. They each play key roles in shaping our innovative culture as we work to bring impactful solutions to the financial industry and simplify financial planning so families can achieve true prosperity.”

Alison, a finalist for the “Thought Leadership & Education” category for individuals, created and hosts a broad range of live, on-demand, and virtual training resources for advisors, including the popular The Tax Management Journey®, a two-day training designed to expand an advisor’s business by adding tax planning and management services to their business offerings. He is constantly innovating and producing compelling and actionable content for advisors and consumers alike. This content covers everything from proven and repeatable turnkey processes for best interest tax management and financial planning to market updates, marketing strategies and operations systems.

Seitz, a finalist for the “Executive Leadership” category for individuals, recently created a seminar and ebook to educate advisors on the new SEC Marketing Rule, covering important details like selecting and soliciting client feedback, required disclosures, avoiding fines, best practices, as well as the pros and cons and the overall impact on one’s practice. Additionally, he started a Marketing Roundtable for industry professionals to collaborate and share ideas on impactful marketing and sales tactics; and was C2P’s #1 mentor in 2022 for the enterprise’s affiliated advisors interested in marketing and sales guidance. His innovative nature continuously helps C2P and its advisors remain competitive as he regularly seeks opportunities to enhance their reach through marketing and education.

The 2023 LUMINARIES finalists list will now go before an esteemed judging panel who are tasked with selecting standout LUMINARIES within each sub-category. These individuals and companies will be highlighted and receive their awards as the 2023 LUMINARIES winners at a gala ceremony in November. For the full methodology, visit: www.event.thinkadvisor.com/luminaries-awards/methodology

About C2P Enterprises

C2P Enterprises is a holding company comprised of brands designed to simplify financial planning for advisors and the clients they serve. United by the vision to provide planning and financial products in the best interest of the client, each company offers education, training, resources and tools to meet a client’s unique financial situation, along with access to an array of investment and insurance vehicles to help accomplish their goals. Each organization is committed to fiduciary best interest practices and training industry standards for a higher qualify of holistic financial planning services to families nationwide and worldwide. For more information, visit www.C2PEnterprises.com.

Investment advisory services are provided by C2P Capital Advisory Group, LLC d/b/a Prosperity Capital Advisors, LLC (“PCA”) an investment adviser federally registered with the Securities and Exchange Commission (SEC).

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