When providing advice on risk, how far does your responsibility go? Is it enough to simply address clients’ own personal risks? What of the risks of those around them, with who their lives are intertwined? Expanding the risk analysis beyond the actual clients in front of you and considering their immediate family as a standard rule with every client is not only good for the client, it can be great for your business.
A few months ago, I wrote an article which appeared in RiskInfo magazine. It tackled the intergenerational advice approach and how many advisers have embraced this proposition as a value-add to their clients.
Consider this; younger Australians will be expected to provide fully for their own retirement like no other generation before. Due to number of factors (no doubt there are many views on whether they are primarily economic, social or lifestyle-related in nature), they are also far less likely than their parents to be prepared for the later stages of their life. Most are not only under-insured, they are also asset-poor and heavily dependent on income.
If ever there were an opportunity to provide value through strategic risk advice, this is one of them.It’s logical that in preparing for retirement, clients might want to ensure that all risks are taken into consideration. Providing greater peace of mind for their children whilst doing so is simply an added bonus.