Wealth Planning and Permanent Life Insurance in a Talent Driven Economy

The last several years have seen a seismic shift in so many areas of life and business that serving your client’s rapidly evolving needs has meant keeping your head on a swivel.  Just as the dust is settling on 2021 and the world collectively holds its breath for the eventual end of lockdowns, staff shortages, and disruptions in the workplace we must also awaken to the realities of this most auspicious 2022.  

Now more than ever we have a fiduciary responsibility to meet our clients where they are while serving them with greater care and financial flexibility.  2022 and beyond will see a greater emphasis on the importance of agile wealth advisors ready to help their clients as they move towards distinctive, personalized financial plans.  

The Gig is Up: Welcome to the Talent Economy 

Amongst the myriad changes we have witnessed in the last few years, perhaps none is more prominent than the shift away from the legacy workplace to a more fluid, self-designed economy.  This shift began a decade ago as the internet and technology allowed free-lancers to work from anywhere.  Back then, we affectionately dubbed this the ‘Gig economy’.  

However, not unlike the mass workforce migrations we’ve seen in history following other world-altering events, the pandemic has forged a new type of worker.  While the Gig Economy was primarily fueled by free-lancers, small, one-person service businesses, and artists, that is no longer the case.  Its expansion now includes scientists, former VPs and CFOs, and literally anyone who has realized that they don’t need to decide between staying at their job or uprooting their family for a new opportunity but can instead follow their personal needs.  

In fact, according to a Pew Research poll, 20% of people worked from home prior to the pandemic, 71% are currently working from home, and 54% would like to continue to work from home when the pandemic is finished.  The 34% potential increase in remote workers represents a possible shift in employment as workers who are asked to return to the office will seek out positions with more fluid work options.  This autonomy in the labor market represents a shift towards self-loyalty previously unseen. 

People have become their own small businesses and the continental corporate economy has given way to an archipelago of talented individuals in a perpetual state of motion. 

The issue facing small, mid, and large-size businesses today has morphed from one of capturing talent to one of maintaining talent.  In short, the Gig Economy is no longer an appropriate moniker.  This is an economy of talent that is regularly on the move.

Flexible but Conservative Financial Planning: The Safe Bet for a Party of One

With the Talent Economy comes a new level of self-reliance for retirement and future financial planning.  Essential planning elements such as a 401k will no longer be the stabilizing force it once was as people leave jobs with greater frequency.  

The robust retirement packages that companies were able to provide their key people take on a new definition in the emerging talent marketplace.  As people move from opportunity to opportunity, their financial plans will require a renewed focus on flexibility and security.  The reality, of course, is that people still need a solid exit strategy for their retirement and will require more financial guidance than at any other point in their career.  

Permanent Life Insurance provides the flexibility and safety to meet today’s mobile workforce while maintaining the fiduciary responsibility we have to our clients

When retirement planning requires a more hands-on effort due to shifting employment, our client will require tools beyond the 401k.  Permanent life insurance can fill some of this insecurity without risking other assets.  Essentially, when you aren’t betting with house money, the safest bet is also the smartest bet.  

With permanent policies, your client is able to secure their family’s financial well-being in the event of their death while also retaining the flexibility and access to cash from the policy as needs arise down the road.  Where a term life policy must be renewed and repurchased at higher premiums, a permanent policy ensures that your client’s protection follows them through their lives. 

Wealth Advisors will become architects in the Talent Economy

 As clients continue their migration to self-sustained employment, they will require creative solutions to grow and preserve their wealth.  Wealth advisors will need to build a financial house for their wealth to thrive regardless of who their employer is at any given time.  Life insurance policies support the structure and safety of your client’s financial goals.  

The keystones of old may not be an option moving forward for many clients and they will require suitable and flexible replacements to ensure that as their talent is rewarded, their future is secured.  While there is still some uncertainty in the year ahead as to how this shift will ultimately impact business, financial planning, and financial advisors, one thing is certain:  Workers will have the same needs for security as they had previously.  It is not the needs that have changed but rather the vehicles required to address them. 

Mettle is Here to Help

Mettle looks forward to helping you find new clients in this market.  Let us know how we can help you best serve your client’s needs to enhance their financial security while upholding your fiduciary responsibility to their best interests.