Saving and investing are the cornerstones of financial planning. What gets less attention is insurance and its role as a risk-management tool. Yet, without insurance, any well-crafted financial plan is at risk of falling apart in the event of a catastrophe.

Still, many registered investment advisors (RIAs) don’t sell insurance because commissions-based products don’t fit their fee-only business models. Instead, they outsource clients’ insurance needs to outside brokers who may not have a grasp of the overarching financial plan.

The rise of fee-based insurance solutions gives RIAs a way to incorporate life, disability and long-term care and annuities into their clients’ holistic financial plans, says Jim Cooper, co-chief executive officer of Financial Independence Group.

“The insurance industry and the asset management industry are colliding fast and furious,” he says.

Last year, FIG and Carson formed a partnership to give advisors access to fee-based insurance solutions. This allows RIAs to include insurance in all phases of holistic financial planning – from accumulation to income to estate planning.

In today’s episode, Jim talks to Ana and Jamie about the importance of insurance in holistic financial planning; how insurance products have evolved to fit the fee-only model, how he’s building FIG’s culture by hiring people with passion and how a job in his family’s steel drum business steered Jim toward sales.

Key Takeaways

  • Insurance must play a key role in holistic financial planning. As fiduciaries, RIAs should incorporate it.
  • Historically, RIAs have steered clear of offering insurance because of their commissions. But that’s changing with the rise of fee-based insurance solutions.
  • To build a strong work culture, leaders should hire people with a career mindset, not just those performing a job.

Quote

“Insurance products have evolved tremendously. The annuity of today is drastically different than the annuity of 10 years ago, but there’s some work to do.” – Jim Cooper

Links

Carson Group believes that insurance and annuities are key components of a holistic financial plan. Schedule a consultation to discuss how you can access fee-only insurance solutions that fit into your business model.

facebook twitter linkedin mail print
Share Post: facebook twitter linkedin mail print
Recent Posts
Blog

Don’t Count This Economy Out

By: Sonu Varghese
The big headline for the November payroll report was that 263,000 jobs were created last month, well above expectations for a gain of 200,000. Job growth has slowed since …
Blog

Five Good Signs for The Bulls In 2023

By: Ryan Detrick
Can you believe it? We made it to December! As we noted yesterday, we wouldn’t be surprised if we finished this year with some more green, but today we’ll …
Blog

Will Santa Bring Jolly or Coal to Investors This December? 🎅🎄🪨

By: Ryan Detrick
Can you believe it? We’ve made it to the last month of the year! I don’t know about you all, but I’ll be pretty happy to wish 2022 goodbye …
Blog

A Popular Recession Indicator is Flashing Bright Red. Should We Worry?

By: Sonu Varghese
A political strategist once said that if there were reincarnation, he would want to come back as the bond market. “You can intimidate everybody,” as he put it. With …
1 2 3 135