Life insurance plays an important part in financial planning After all, a financial advisor is supposed to be the untouchable fiduciary working solely on the client’s behalf. There are many reasons why financial advisors might consider selling life insurance as part of the services they offer their clients.

How does investment grade life insurance work?

An investment-grade insurance contract, or IGIC, is an insurance contract that allows you to both invest your money without having to pay taxes on its growth, but also use it when you need it without having to pay taxes on the money you use. You can also leave it to your heirs without subjecting it to income tax.

Can a CFP sell life insurance?

Insurance agents, financial experts, financial advisors, and CFP professionals all have the ability to sell disability and life insurance if they have a life license, but only CFP professionals have required training and certification to have their title.

What is the prime reason for recommending life insurance to a wealth management client?

Someone relies on you for financial support The number-one reason why someone needs life insurance is simply to replace income.

What are investments in insurance contracts?

A GIC, is a stable value investment contract issued by an insurance company that usually pays a specified rate of return for a specific period of time, guarantees principal and accumulated interest (i.e., offers contract value accounting), and is benefit responsive to qualified participant withdrawals.

What is the point of cash value in life insurance?

The cash value component serves as a living benefit for policyholders from which they may draw funds. The life insurance net cash value is what the policyholder or their beneficiary has left over once the insurance company deducts its fees or any expenses incurred during the ownership of the policy.

Do you know about investment grade insurance contracts?

Many Financial Advisors have started to recomend using investment grade insurance contracts to supplement your retirement savings however there are many advisors who still don’t even know what the heck these plans are.

Which is better a financial advisor or an insurance agent?

Most insurance companies offer only a few products, i.e. health insurance, whole life insurance, term life insurance and variable life insurance, while the advisor generally has the option to sell shares or debt instruments of literally thousands of public companies.

Do you need a life insurance policy with a financial advisor?

The truth is that most financial advisors wear multiple hats, and a life insurance policy has a part in almost any serious financial plan. Most people have a legitimate need for a life insurance policy, but exactly what kind depends on the family situation.

How to find the best financial advisor for your needs?

Competent financial advisors come in many shapes and sizes. Deciding what you want them to do for you is the key to finding the right advisor. The answers to the above questions are where you should start. If you just want investment help, there are inexpensive options to consider (more on that shortly).