By Anthony DeGregorio, Zenith Marketing
A recent supreme court decision upholding a policyholder's old beneficiary designation is a good reminder of the importance of regularly reviewing beneficiary designations with clients. The policyholder had remarried and changed many of his policies but missed his federal employees' group life insurance policy (FEGLI). The Supreme Court upheld the old beneficiary designation, even though Virginia law would have overridden it.
Those of us who have spent some time in the insurance industry have heard the horror stories about beneficiary designations gone awry; families torn apart, with expensive litigation, adding enormous stress in already-difficult times. While this can be an uncomfortable topic for some clients, the benefits of having this discussion far outweigh the alternatives.
It falls upon advisors to do our best to make sure our clients’ wishes are correctly represented. Not only are beneficiary reviews a prudent planning step for your clients, but they also provide an excellent reason to interact with your database and strengthen your client relationships. It also lets you dig more deeply into a client’s portfolio, where you can possibly uncover information that can help you address additional planning needs. This translates into more sales!
Don’t forget to stop by and visit Zenith Marketing’s booth at the upcoming ABIA annual conference - Connect with the Best in Bank-Insurance.