Financial Planning vs. Life Insurance

Financial Planning vs. Life Insurance

I am a life insurance agent in the State of California with a Bachelor’s degree in Financial Planning. According to my studies, financial planners typically review seven broad areas related to their clients.

  1. Current financial position
  2. Income taxes
  3. Risk management
  4. Retirement
  5. Investments
  6. Estate planning
  7. Education planning and other special needs areas.

Since I have a degree but am not a certified financial planner (CFP), I cannot legally help you with many of these areas. Interestingly, many CFP are also licensed to sell life insurance. But, this article from Financial Advisor magazine (which is a pro-advisor publication, says –

“Effective wealth managers regularly provide life insurance to their clients and ensure that it happens seamlessly. This requires practice, patience and, more often than not, a partnership with a life insurance expert.”

“In a study of 522 financial advisors, roughly 34% of respondents were opposed to offering life insurance. While the remaining 66% were willing to provide it, they were critical of their ability to do so successfully.”

“Two-fifths of advisors, or 41%, reported that life insurance is too complicated to add to their menu of offerings. Without question, insurance is complex and becomes more so when used as part of sophisticated wealth management strategies.”

“The 346 financial advisors in the survey that do provide life insurance are, by their own admission, not very adept at it. Tellingly, not a single respondent considered themselves “very successful” and only 17% reported being “successful.” The remaining 83% categorized themselves as less than successful, which means there is considerable room for improvement for these practitioners.”

“And a similarly large number, 73%, find insurance too difficult to fully understand and represent to their clients.”

It appears that, if you want to take advantage of the many benefits of life insurance, you’re going to need a good life insurance agent. I can help you with the following areas if you live in the State of California

  1. Retirement
  2. Estate planning
  3. Education planning

As a matter of fact, I previous wrote an article for this website ( to show how you can use life insurance to do any and all of the following –

  1. Replace the income of a deceased spouse, parent, or guardian.
  2. Provide an instant estate for your family or heirs if you die.
  3. Leave an estate or legacy to your favorite charity, school, or other cause.
  4. Provide money to pay for long term care at your home or a specialized facility.
  5. Guarantee the value of a “key man” to a business.
  6. Can provide money to execute a “Buy/Sell Agreement” in a business.
  7. Pay your estate taxes or other debts when you die.
  8. Can be sold for cash.
  9. Can provide tax-free cash to pay for college and help the family of a college-bound student qualify for more financial aid.
  10. Build a cash value that can be accessed without penalties or income taxes for –
  • Emergencies
  • Investment
  • Paying off your house
  • A financing alternative to expensive banks and finance companies
  • Building a retirement income free of income taxes

You can also use annuities (with zero or low costs) as part of your retirement strategy; getting an immediate bonus of up to 10% on the amount you transfer, plus bonuses on additional funds deposited, then receiving a guaranteed income for life in retirement, even if you live longer than expected. If you pass away before using all the money in the account, the balance will be transferred to your heir(s).

If you have any of the needs/goals listed above, please speak to a good life insurance agent ASAP.

Michael Goodman

Independent life insurance agent in Northridge, CA


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