Even the Ultra-Wealthy Have Holes in Their Safety Nets
Kaplan also wants planners to look hard at the insurance arrangements of clients with between $20 million and $50 million in net worth.
High-end wealth advisors quickly spot and court UHNW clients, and many offer great options for mass affluent clients.
In some cases, Kaplan said, ordinary high-net-worth clients end up in a planning dead zone, without attracting the attention of advisors with the tools to meet their needs.
Self-insuring property: Kaplan finds that conversations with clients about property insurance needs tend to be simple.
“I have worked with many ultra-high-net-worth families and have not yet seen a case where they are not using property and casualty insurance to insure their real estate, aircraft, art, boats, and business,” he said.
Life, health and annuities: For Kaplan, conversations with planners and UHNW clients about life insurance, annuities and long-term care insurance can be challenging.
“For families like this, insurance is no longer about income protection or legacy creation,” Kaplan said. “It’s about intergenerational wealth transfer, philanthropic endeavors and wealth preservation.”
Overcoming skepticism: Kaplan encourages planners to offer clients a broad range of annuity and coverage options.
“The decision to implement insurance is a personal one,” Kaplan said. “I sometimes see planners view the client’s decision through their own eyes rather than presenting all solutions.”
One way to avoid letting personal biases interfere with recommendations is to use software that can show how a range of options might work, Kaplan said.
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