Financial advisors serving Baby Boomers need to take a different approach than they might with other clients, according to a white paper from Chubb.
Baby Boomers have different risk profiles than younger Americans and they’re also less concerned with accumulating wealth. The Chubb white paper found that they were more focused on concerns like philanthropy, travel, buying vacation properties and making sure they could give financial assistance to their children,
Those activities come with their own special set of risks, Chubb found — from personal liability for family members to property damage risk for new real estate. Financial advisors even need to account for risk in philanthropy. The white paper cited a study finding that 61% of high-net-worth individuals served on nonprofit boards — but those boards may not offer sufficient liability insurance for directors and officers.
Baby Boomer travel enthusiasts also often lack adequate coverage for medical evacuation, Chubb found. In remote locations, emergency medical evacuation can run up a tab of $200,000 or more.
Financial planners need to take all of these eventualities into account to protect Boomer clients from the potential for “catastrophic” financial losses, Chubb said.
The question for you is, are you friendly with any FAs who want insurance for their clients? If not, this holiday season might well be a good time to start getting acquainted with some!
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