As the client's estate planning attorney, you are the authority on setting the stage for your clients to have their estates distributed to whom that want, how they want, and when they want. Helping that happen is no easy task and one that requires an enormous amount of technical expertise in your field.
That level of sophistication does not come without years of experience and paying keen attention to the details of your craft. A good estate planning attorney could result in millions of unnecessary tax dollars, discord in a family at the patriarch's passing, or even setting young children up to fail because the family did not put the proper thought and expertise into the planning process while they were alive.
And through the process, there are many instances where the client's first call on matters of life insurance is to the attorney.
How could that be when most attorneys aren't even licensed to advise on insurance? Well, it makes perfect sense, as they know you are knowledgeable on estate planning, life insurance is a key component of that planning, and bottom line, they trust you.
Unfortunately, they ask questions about life insurance, regardless of your expertise and your decision to answer those questions can sometimes put you in an uncomfortable situation.
Are you expert enough to confidently provide the correct information? And even if you are extremely well-versed on the subject, is it worth "practicing insurance without a license" for the one time you make an error which costs the clients hundreds of thousands of dollars and the reason for that loss can be traced back to the erroneous advice you gave them?
Why answer life insurance questions alone?
The concern that we most often hear from elite attorneys is that while they want to be all things to all people in the realm of disseminating estate planning advice, the complexity of various insurance concepts does not make it prudent to do so.
Pretending to be an expert on a subject when you are not goes against every standard you have strived to upkeep as you've built your practice. Not to mention the ramifications that could be incurred if the insurance advice you give falls prey to a costly mistake causing you to damage or sever a long-term relationship with a client.
It is for that reason that, by virtue of you viewing this website, you acknowledge that surrounding yourself with the proper talent and resources on subject matter that is not your core competency is beneficial to your client and your practice.
On the topic of life insurance, you can have a specialist on your team that is properly guiding your client toward success.