Legacy Planning Checklist for Advisors & Insurance Agents

Legacy planning checklist

We recently discussed how COVID -19 has shifted focus toward legacy planning ventures for many individuals. From business owners to families, people have started taking estate planning much more seriously. We made a checklist for individuals [h1] that included the number of actionable tips to enact as soon as possible, and we are going to do the same here for insurance agents.

So, without further delays, here is a checklist that you should keep with you when helping any client with their legacy and financial planning ventures.

A Checklist for Insurance Advisors for Legacy Planning

Step 1.              Explain the Difference Between Estate & Legacy Planning

Address the needs of your clients by discussing both options with them before you embark on the long journey ahead. This is where you start building trust.

Step 2.              Consider Client’s Vision for Their Family’s Future

Discuss the following to get a better understanding of what exactly they are looking to accomplish.

  1. What do they want to pass down to their children/grandchildren
  2. Any short, medium and long term goals
  3. Whether the current financial position of the client is sufficient to meet said goals
  4. Consider any unique circumstances such as disabilities, multiple marriages, liabilities and more
  5. Whether the heirs are of sound mind and of age

Step 3.              Gather Client’s Documents

Once the vision is clear, it is time to start implementing it. Start collecting documents necessary for smooth transition after the client’s death. This can include numerous documents, some of which include:

  1. Wills,
  2. Trusts,
  3. List of beneficiaries,
  4. Certificates (including birth certificate),
  5. Retirement plan information,
  6. Deeds,
  7. Tax information, and more.

Step 4.              Discuss Who Gets the Power of Attorney

Ask your client who they trust with your legacy as a whole and would be responsible for making decisions about your legacy. This will include:

  1. Assigning financial power of attorney
  2. Creating a living will
  3. Long-term care insurance and beneficiaries
  4. Healthcare power of attorney and more

Step 5.              Create a Succession Plan for the Client

Next, discuss who will take over the client’s business and ask for any specific instructions to be followed. Two main considerations here include:

  1. Who will take your place in the business
  2. Who will take your place in the business
  3. Who will take your place in the business

Step 6.              Take Inventory

In this step, you will have to create a list of all the assets your client has – not just physical, but digital as well. Create a schedule to update the collected documents, inventory and legacy plan as a whole.

Step 7.              Store Documents & the “Legacy Plan” Safely

Once you have all the necessary documents collected, it is time to store them safely for the client and their family to find. There are digital vaults that you can store such information in and give access only to the clients themselves, and their family after the client has passed.

Legacy Armour can help you here with our secure vaults designed specifically to protect legacies until the time comes. If you would like to learn more about how we can help you create bullet-proof legacies, get in touch with us at 844-875-3422 or email us at info@legacyarmour.com.

Life Insurance Vs Health Insurance – What to Invest In?

Difference between life and health insurance

In 2020, 54% of Americans owned life insurance while 91.5% of Americans owned a health insurance plan. Despite the large gap in ownership percentages, unfortunately both terms; health and life insurance, are often used interchangeably. This is a grave error that people make; one that can have direct impacts on their financial planning and ultimately, their health.

It is important to know the difference between the two, especially in the economic climate left behind by the coronavirus pandemic. In this article, you will learn more about the differences between the two and which one is more important.

Life Insurance vs. Health Insurance – The General Difference

Insurance as a whole is a very important sector, helping people mitigate damages and effectively reduce the inconvenience of unexpected events. However, every type of insurance – no matter how similar they might seem – is different from the other.

Life insurance is a type of insurance that pays a death benefit to your appointed beneficiary(s) in case of your death. The purpose is to leave behind some sort of financial support to replace the loss of your future income and to help them in their time of need.

You can think of life insurance as a sort of premature legacy plan where you leave money for your spouse and/or children so that they don’t struggle.

Health insurance, also known as medical insurance, is a type of insurance that helps pay your medical expenses. In the US, health insurance used to be mandatory until 31st December, 2018. Since 1st January, 2019, the only type of insurance that is still compulsory is automotive insurance.

The goal of this insurance is to pay for doctor’s visits, medications, tests, procedures, and more, as and when the need arises. Unfortunately, the cost of Medicare in the US without insurance is extremely high – to a point where people can go bankrupt over something as simple as a panic attack!

Here is a table to highlight even more differences.

TypeLife InsuranceHealth Insurance
PurposeHelping beneficiaries after you pass awayCovering the cost of medical treatment for yourself and other beneficiaries
TypesTerm, whole and investment-linked policyDifferent tiers of coverage
Payout TermsLump sum upon death of policy holderOnce policy terms are fulfilled[KH1] 
Tax Benefit/ReliefYesYes

What Type of Insurance Do I Need?

If you think about it, both insurance policies are important in their own way. Where one helps you take care of your family in case of an uncertain event, while the other continues to help you and your family through sickness.

However, if you really must pick one of the two – and we don’t recommend opting out of either of the two – you should go for health insurance. As mentioned above, Medicare costs without insurance are enough to break your bank in just one day. Your savings can help your family after your death if it comes down to it.

Having said that, we recommend that you don’t opt out of either one, but only limit coverage to the service you really need. The more limits you implement, the most affordable insurance costs become.

If you’d like help determining which insurance policy fits you best or how you can reduce costs of health and life insurance, we recommend you get in touch with us at LegacyArmour. We have a team of experts that can help determine the best action for you in regards to any type of insurance policy, as well as making a will, storing sensitive information, and more!

Objections in Insurance Sales – How Can You Overcome Them?

Selling insurance and legacy planning tools on call

When it comes to handling customers as an insurance agent, there are four major objections that you’ll have to handle throughout your career:

  1. Price and risk involved,
  2. Quality of service you’re providing,
  3. The trust and relationships you build over the course of your career, and
  4. Decision stalls, where you have to keep asking customers for their decisions.

Whether it’s a matter of legacy planning, life insurance, wills or even just a simple matter of estate planning, you’ll always have to overcome hurdles. Unfortunately, there is no such thing as the “perfect sale.”

One of the most common reasons sales aren’t successful are customer objections in insurance sales, and one of the best ways to resolve these objections is to understand them. You, as an insurance agent, need to understand how you can make your audiences engage with you positively and why people might not want to work with you.

Here are our observations about these objections, which helped us build much better relationships with our customers:

People Generally Don’t Like Change

To satisfy customers, you need to head to their turf. Clients – especially those you call – are satisfied with what they have. Yes, you know better about what additional or different insurance policies or products they’d need, but you must take into consideration what Newton said,

“Things that are in motion tend to stay in motion, and those at rest tend to remain at rest unless an external force is applied to them.”

You need to have all the relevant information at the ready to help your clients understand why change is necessary and the costs involved (for them).

The Price – It’s Almost Always the Price

Regardless of whether you’re charging more or less for the same insurance policy, it will always present itself as a hurdle. Yes, lower prices may be less of a hurdle, but it raises a question; why are they charging me less for the same? Is there something wrong with their service?

You need to explain the price difference to your customers in detail and how it affects their insurance or legacy planning.

If high annual payments are a concern, remember to show customers how smaller monthly payments would be better-suited.

“Let Me Ask the Partner”

If there are gatekeepers, there will always be a delay. If people need to check with someone else, chances are that you will have to convince another member of the same household. This presents a stall, where you might end up having to explain your position again.

Keep a cool head and continue to do your best. If you noticed any objections the first person had, hint at them subtly until the other person asks about the same in detail. STICK TO YOUR PITCH. Make amends, not drastic changes.

Customers Looking to Negotiate

As an insurance agent, you know well enough that negotiation isn’t usually on the table unless you’re in an executive position. But as a person buying insurance, it is natural to always look for more insurance against less money.

Be sure to listen to what the clients want and if you can create a custom plan for them that reduces costs and gives them what they want, go for it. Usually, customers aren’t clear about what they want. They don’t know much about their options, so they’ll simply highlight the most important aspects for them in an insurance policy or financial planning.

See if they mention anything manageable, such as a slight amendment in a given plan.

Handling clients in the heat of the moment is trickier than it seems. You might see more and more options in hindsight, but being present in the moment is much harder. At Legacy Armour, we’re here to help you increase your clientele with tailored advice as and when you need it, along with a safe haven for your client’s documents and legacy planning ventures. If you’d like to learn more, contact us today via call or mail

Why Life Insurance Benefits Go Unclaimed

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When an insurer purchases a life insurance policy, the purpose is to provide for their loved ones upon their death. However, these life insurance benefits often go unclaimed. Here are some reasons why as well as how a life monitoring platform can prevent benefits from going unclaimed.

Forgotten Policies

In many cases, the insurer forgets about the policy or only vaguely mentions its existence to family members years prior to their death. As a result, when the insured person passes away, no one knows where the life insurance policy is located. Forgotten policies have resulted in at least $1 billion of unclaimed benefits.

Finding Lost Policies

What do you do if you don’t have the life insurance policy in hand? There are several steps you can take to discover if you are an unclaimed beneficiary. It’s time to claim what is rightfully yours. Over the next few sections, we will discuss ways to find lost policies.

Records and Storage Areas

The first step you can take to try and locate a missing life insurance policy is to search through your loved one’s records and storage areas. If you have no luck there with finding a missing life insurance policy, you can also search bank statements and tax returns. Bank statements can indicate monthly policy payments, and tax returns may show interest from an insurance policy.

Former Employers

Many people set up life insurance policies when they begin their first career. If your deceased loved one held several jobs, you should check with those businesses for any outstanding policies. It would not be unusual for a life insurance policy to remain in effect years after your loved one left that employment for another job.

Unclaimed Property Offices

You can also search for unclaimed insurance policies through a state unclaimed property office. If a life insurance provider can’t locate a beneficiary, it will release the funds to the state in which the policy was purchased. By searching the database, you can determine if you are owed money from an unclaimed policy.

Life Monitoring Platform

To better prepare for your family’s needs in the event of your death, it would be prudent to participate in a life monitoring platform. With a life monitoring platform, you can store all your important documents in one, easy to access location. This includes life insurance policies, beneficiaries, last wishes, funeral directives, and more. Don’t risk your life insurance policy getting lost or forgotten. If you need assistance with your estate planning, contact LegacyArmour at 1-844-875-3422 today.