The Intermediary – February 2025 - Flipbook - Page 77
P RO T E C T I O N
Opinion
whole of life
financial planning
only for covering final expenses.
These misconceptions can prevent
individuals from considering its
broader applications in financial
planning.
Focus on short-term needs: Many
advisers and clients tend to focus
on short-term financial needs,
neglecting the long-term benefits
of whole of life insurance. This can
lead to missed opportunities for
estate planning, legacy creation,
and tax-advantaged wealth
accumulation.
Lack of education: Insufficient
education and training among
advisers about the features and
benefits of whole of life insurance
can limit its recommendation to
clients. Similarly, clients may
lack awareness of the potential
advantages of this type of policy.
Overcoming the barriers
To promote the appropriate use of
whole of life insurance, it’s essential to
address these barriers.
Advisers need comprehensive
training on the various types of
whole of life insurance policies, their
features, and their applications in
different financial planning scenarios.
Clients should also be educated about
the benefits and how it can fit into
their overall financial goals.
Clear and concise explanations of
policy costs, features, and benefits
are crucial. Advisers should provide
clients with detailed illustrations
and comparisons to help them make
informed decisions.
Encouraging a long-term
perspective in financial planning is
essential. Advisers should emphasise
the value of whole of life insurance for
estate planning, legacy creation, and
tax-advantaged wealth accumulation.
Recognising that each client’s
needs are unique, advisers should
tailor whole of life insurance
ANDREW TEEMAN
is business principal and adviser
at Mortgage Advice Bureau
recommendations to individual
circumstances and financial goals.
Building trust between advisers
and clients is paramount. Clients
need to feel confident that their
adviser understands their needs
and is recommending the most
suitable solutions for their long-term
financial wellbeing.
Conclusion
Whole of life insurance is a powerful
tool in financial planning, offering
guaranteed death benefits, cash
value accumulation, estate planning
advantages, and tax benefits.
Despite its importance, it
remains underutilsed due to factors
like cost concerns, complexity,
misconceptions, and a lack of
education. By addressing these
barriers through education,
transparency, a focus on longterm planning, and customised
solutions, advisers can help clients
understand the true value of whole
of life insurance and incorporate it
effectively into their financial plans.
This will ensure that individuals
have the financial security and peace
of mind they need throughout their
lives, and can leave a lasting legacy for
their loved ones. ●
Clear and concise
explanations of policy,
costs, features and
benefits are crucial.
Advisers should provide
clients with detailed
illustrations and
comparisons”
February 2025 | The Intermediary
77
