Financial Standard Comments - Advisers ignoring estate planning gold mine

Comment by Trevor ()

Trevor () — Thu, 08 Sep 2011 15:13:26 +1000

It is ever so quaint to hear institutional technical specialists state "More often than not having a conversation about estate planning will lead to the discovering of gaps in your clients portfolio and therefore insurance sales. This is something many planners are missing."
I thought the emphasis and the drive to be seen as a profession was "advice" not "sales" but it is quite evident that the product manufacturers, however want more "sales".

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Comment by Frank ()

Frank () — Thu, 08 Sep 2011 18:25:37 +1000

To be fair I think the term "sales" was used in the context of the fact that life insurance needs to be sold. There is no tangible benefit until claim time other than perhaps some peace of mind. Besides, life insurance companies don't want people "buying" life insurance as it would change the whole risk structure of the premium rates.(it's called anti selection) If all insurance was "bought" then premium rates would rise in the long run. Part of the reason that commissions are necessary. If in doubt - then check the loss ratios priced into those TV products. They will be at least twice those priced into a retail product "sold" an adviser.
regards,

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Comment by Accountant... CA ()

Accountant... CA () — Fri, 09 Sep 2011 18:45:32 +1000

The obvious reason why estate planning is paid only "lip service" is because "advisers" (ie. financial sales people) are unable to derive a commission or asset-based service fee (ie. commission) from it. Unfortunately, the story is as simple as that!!

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