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Insurance: Why I Decided To Get Relicensed

I'll be the first to admit it - I have a complicated relationship with insurance products.


In college, I worked briefly as an intern for a large mutual insurer that relentlessly pushed permanent insurance over term coverage. The experience soured me on the industry as a whole.


Nearly a decade later, I would re-enter the world of financial services as an advisor and carry this bias forward. I relented on my views two years ago and concluded that insurance isn't as black and white as I had long conceded.


I have long held that term insurance is the cream of the crop and that other insurance products were questionable at best. However, I have realized that annuities hold a place in financial planning (I remain skeptical of permanent insurance).


To those unfamiliar, annuities offer guaranteed income, similar to a pension, which provides value for certain retirees. This guarantee provides peace of mind for highly risk-averse clients who need certainty.


Unlike traditional investments, annuities are sold through an insurance license and are not securities. As a result, annuities are contracts that guarantee a client a specified rate of return, often over a given period. Such certainty is valuable and provides tangible benefits to certain retirees that other financial vehicles cannot match.


Suppose someone needs immediate income from their savings. In this case, an annuity could meet the individual's needs if they are sensitive to taking risks or need certitude.


While I remain committed to the idea that most individuals should focus on stock and bond investments, it is essential as an advisor to offer annuities when appropriate.


In my last job, I only focused on employer retirement benefits, which annuities remained absent from. Since transitioning to Lundeen Abrams, I have worked more broadly with clients. Thus, I have come to recognize the value annuities can provide and therefore have undergone the process of getting licensed to serve our clients as needed in tandem with Suzanne.


If you need assistance with your financial plan, we are here to help. At Lundeen Abrams Advisors, we constantly learn about potential ways to better serve our clients through ongoing education, attending industry conferences and events, and research. To set up a consultation with us, give us a call today so we can see how we can help!

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