How to prepare your clients for 3 major life-changing events.

Life changes all the time and every individual will be affected by a series of expected and unexpected major life events, such as marriage, the birth of a child, divorce, the death of a spouse etc. When it comes to your clients, you know that you have to take a long-term view of their portfolio to ensure that their wealth is protected (and that it prospers) over time and through all these transitions. And that they can trust you to do so.

Three life-changing events to discuss with your clients

1. Marriage

Whether their own or their child’s, paying for a wedding can be a costly affair, that might see your clients turning to their credit cards to pay for all the expenses associated with tying the knot. Beyond that, once married, individuals will need to sort out how their finances, savings, and investments work for them as individuals and as a couple which might require a financial review and confirmation that they understand and respect each other’s financial goals.

2. Having a baby

Bringing a child into the world can be a costly process and, especially for women, might mean changing their working life and, therefore, their income level. Every aspect of your client’s financial plan, from medical savings to income protection, will need to be reviewed and refined in light of a growing family.

3. The death of a loved one

Losing a spouse or family member is a stressful and difficult process but, with the proper planning, the financial aspects and implications don’t have to be. From life insurance to covering funeral costs, it’s important to have this sensitive discussion with your clients as death is a part of life and needs to be incorporated into any financial plan, whatever your client’s age or situation.

Two ways to prepare your clients for life changes

1. Understand that transitions take time

Talk to your clients about the fact that many major life changes don’t happen overnight and that if they can be anticipated (for example, the birth of a child), it’s a great idea to plan ahead and put in place a financial plan to deal with that transition. For more unexpected transitions (for example, the loss of a job), it’s important to show your clients that you understand, that while the event might be sudden, the emotional transition might be a process. And this might mean a great degree of guidance than before, such as meeting more than once to discuss how best to handle the change.

2. Talk about the emotional aspect

When big shifts happen so do big emotions and it’s important to point that out to your clients, in as sensitive a way as possible. When people are forced to change, they may make rash decisions or squander potential financial opportunities (for example, an inheritance from a deceased estate) so it’s best that they have the proper guidance and restraint at this time. Make a list with your client of everything they are thinking about and want to do during this time. Identify those items that are time sensitive and then put a pause on those that can wait until emotions have calmed.

At TRG, we understand that every client relationship is unique but also that every individual faces similar life challenges. That’s why we believe in helping our affiliated advisers and clients to protect and nurture their wealth by providing them with the tools and support to do just that. We can offer you tailored insurance and investment and wealth management solutions? Tell us about it!

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