Protecting Businesses
The Need
Planning for business owners, key and non-key employees is an underserved area of risk management. Most advisors don’t practice business planning because of the complexities.
You have to understand and be able to talk about corporate entities, tax considerations, entity valuation, shareholder agreements, employee contracts, corporate risk, and exit strategies. That’s just a shortlist!
However, it would be best if you started serving your business owner and c-suite executives immediately. Here is a true story from an advisor in South Florida who did not talk to clients about business planning.
Never Again!
We received a call from an upset advisor. He wanted to know the premium on a $25,000,000 life insurance policy his client secured from another source. A client sold his business for $50,000,000 without the FA’s knowledge, and the acquiring company took out a key person policy to ensure the transition from another agent. What was even worse was that the $50,000,000 went to another wealth advisor that did get involved with business planning and sold the policy.
Start You Business Planning Service Today
Please Explore The Many Aspects of Business Planning On Our Site
The Business Planning Process
There is no perfect order to the process. It can be a bit fluid and specialized to fit you or your client’s preferences. Our business planning process is called the “Value Acceleration Methodology” and was designed recommended by the Exit Planning Institute. The process involves significant discovery. The client is queried on personal and business financial matters to make “best interest” planning recommendations. During the process, we may be communicating with your client’s accountant and attorney.
The process starts with a phone call. You call us and discuss your client. We provide some preliminary advice. Then, you talk to your client and schedule a call, video, or real-life meeting to gather more information and formulate plans.
We quickly formulate a plan and schedule a follow-up meeting with you and your client to discuss the plan, make adjustments, and discuss implementation.
At this point, we get a go-ahead about 80% of the time because we did it the right way. The recommendations are in your client’s best interests, and they know it. The premiums are within their budget, and it solves their insurance need.
Underwriting & Case Management
Underwriting is the long part. We will help you get appointed with the recommended carrier and guide you through your firm’s compliance. Our case management team will contact your client and begin the process. Most of the application paperwork today can be completed with DocuSign. We will keep you informed throughout the entire underwriting.
Upon underwriting approval, we will communicate the offer to you an then your client. After your client gives to “ok” to proceed, we will work with the insurance company to prepare, deliver, and put the policy in-force.
The Ongoing Service
Should you need anything regarding the policy, our in-house agent services unit is ready to help. They can provide policy information, request reports, and facilitate any necessary policy changes.