Opening with the utility of these insurance products can help introduce the difficulty inherent in the probate process and the risks that clients may face if they lack an estate plan. Many people will prefer to avoid the topics of death and taxes encompassed within the estate planning process. In explaining why estate plan coverage is so low among Canadians, Soo explains that some will think they are too young, or that the process is too time consuming, expensive, or complicated. She argues, however, that estate plans are a necessity for all Canadians and that they don’t need to be complex to be effective.
Insurance conversations can be one of the ways that advisors begin that process. Soo notes that by introducing the need for life insurance, advisors can begin to talk about who would receive any assets after death and how that process can be made smoother than going through probate. Segregated funds, too, can help in preparing a client’s family for the intergenerational wealth transfer.
Asked when advisors should introduce the idea of estate plans to clients, Soo simply says “now.” She argues that no matter where a client is in their age or life, having the base of an estate plan can help them. She reiterates the fact that a plan can be simple and straightforward, especially as a baseline for a younger client.
While estate planning may not be in financial advisors’ traditional wheelhouse, there are a growing number of tools designed to support advisors in building simple estate plans. Those can include AI estate planning tools as well as traditional support resources offered by firms like RBC insurance.
While estate planning is not necessarily easy work, involving potentially difficult conversations with clients, Soo believes that by engaging in estate planning advisors can create deeper relationships with clients and set up their businesses for the great intergenerational wealth transfer.