About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, September 17th, 1:27PM
Latest Headlines

Cover Life's Bases

Practice Management: A former Los Angeles Dodger, Stan Russell uses his love for baseball to help illustrate to his clients the need to protect their income.

Wednesday, May 14th 2008, 1:15PM
After high school, Russell was drafted and played professional baseball for four years before his athletic career was cut short by an arm injury. From there, he moved on to the financial services industry. He shares his baseball analogy with other advisers.

I explain to clients that I have my CLU, ChFC, CSA and CLTC professional designations, but these don't mean anything to them if they don't understand what we talk about. To help them understand products and their purposes, I use a simple baseball diamond diagram:

  • First base is medical insurance. Many clients are already covered through work, but being uncovered can result in astronomical medical bills with a single illness.
  • Second base is life insurance. I call it "love insurance," as most people who buy this product love someone. I ask clients: "How much do you love your family? Put a number on it, and then insure yourself - and your spouse - for that amount."
  • Third base is disability income insurance. This protects clients' No. 1 asset: their ability to work and get paid so they can feed and take care of their family. Third base should also include long-term care insurance and, for many, critical illness insurance.
  • Home plate is retirement planning, estate planning, wills and trusts. I tell clients that they must be able to put their head on their pillow every night and understand that "all of their bases are covered" and that nothing could financially destroy their family.
A few days after I explain the baseball diamond, I usually get a call saying we need to meet again, and that they need to purchase more second and third base. And, we should also start increasing home plate with our retirement plan, and update our wills and trusts.

Personal experience leaves no room for doubt in Russell's mind about the importance of covering clients' financial bases.

When his 36-year-old wife, Jill, was diagnosed with an aggressive form of leukemia, the disability and life insurance policies he owned saved him from shutting down his business and losing the house he shared with his family.

His question is pertinent to clients and colleagues: Have you covered all of your bases and those of your clients?

Source: Million Dollar Round Table

« Fidelity gets behind risk advice softwareTower's health business in good shape »

Special Offers

Commenting is closed



Printable version  


Email to a friend
Insurance Briefs

Asteron and Fidelity go head to head for award

nib enters ASX 100
nib health funds has been added to the ASX 100 index as part of the September 2019 quarterly rebalance of the S&P/ASX Indices.

AIA's shot at a TV ad
AIA New Zealand joins forces with Dame Valerie Adams to help Kiwis live healthier, longer, better lives.

Southern Cross recognised
Southern Cross Health Society has been recognised as one of Australasia’s top 10 ‘Most Innovative Companies’ for BeingWell, its corporate health and wellness programme.

News Bites
Latest Comments
  • Insurer response 'not good enough'
    “Last year didn't Adrian Orr supervise the purchase a controlling interest in Fidelity Life. And before he went off to the...”
    1 hour ago by Elephant1
  • Insurer response 'not good enough'
    “Full disclosure – I’m not an adviser and know nothing about the insurance industry. However, I am intrigued at @Ron Floods...”
    2 hours ago by Pragmatic
  • Anti-commission advocate appointed to FMA board
    “Seandnz, right on the money. Im gobsmacked that she should be recruited to the FMAS with her clearly biased views. Will there...”
    3 hours ago by Bikedude
  • Insurer response 'not good enough'
    “As expected, commission is the root of all evil, someone working on commission is conflicted, while someone on a salary with...”
    4 hours ago by lewiboy
  • Anti-commission advocate appointed to FMA board
    “So does that mean ALL commission based businesses should move to fee based ie real estate, car sales, if not then it is purely...”
    4 hours ago by perryb
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News


Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
Site by Web Developer and eyelovedesign.com