Carl

RIA at F4

5 advisors

Average client size is about $1 million

At least three are life insurance licensed.

He got licensed because at his former firm (Wirehouse for three years), it was a soft requirement. He wants to be a one-stop-shop for everyone who he works with.

He feels that having a working knowledge of the insurance world is important.

Evaluating life insurance needs for a client:

Early on - if working with a family who has dependents, they recommend it. Later, after they have fewer financial dependents, it may not be as necessary to pay that premium.

That tax-free inheritance is really nice for dependents.

He recommends term and perm depending on the needs. Younger folks have different needs. Most of his type of client can afford a permanent policy.

He marks in the documentation that they had the life insurance conversation.

He refers clients to an insurance specialist within their company most of the time.

Compensation structure: case by case. If a client is closet to him personally, then he will decline compensation for the referral. If it's more of a traditional sales pipeline he may take up to 10%.

[switching to first-person, as Carl]

When does the conversation happen?

Most clients have existing policies by the time we meet them. It is rare that we evaluate a policy for them. Insurance is one of the second or third conversations that we will have with someone. It is very important from a financial planning perspective. Ranges from 10x-20x for our clients. 10x is our absolute minimum if there are dependents.