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NAIFA's Limited & Extended Care Planning Center

The LECP Center empowers professionals to network with solution and service providers to share best practices, directly access subject matter experts, research, training and resources; and provide thought leadership so we may continue to address the changing needs of the market.

Since the inception of the computer, it has opened doors, transformed current industries, and created new ones at breakneck speed. With each new development, such as the internet, the cellphone, and the smartphone, the pace at which our society evolves has increased exponentially. The future is now, but it is also tomorrow. However, there is an interesting divide that we can actively observe between generations. 

While many of us still remember a time before we had mini-computers glued to our hands, there are those of us who do not. For the younger generations, these technologies are not additional tools we can use to benefit certain aspects of our lives but, instead, an integral part of our daily existence. As financial advisors, we have a unique vantage point to observe this phenomenon through our primarily older clients and their younger children. As Baby Boomers (ages 55–73) continue to age, they will be passing up to an estimated $68 trillion in assets to their Gen X and Millennial children. This has been aptly dubbed The Great Wealth Transfer, and as in insurance agent or financial professional, it is something we all need to start preparing for. Your future insurance practice will thank you for learning how to capitalize on the world of tomorrow today.

Nontraditional Investment Strategies

Technology has thrown a lot of things into flux, one of the most notable being money itself. While the older generations favor traditional investments such as commodities and company stock, their children aren’t afraid to take some futuristic risks. If you aren’t already coming across portfolios that contain next-gen investments such as cryptocurrency and technologically inclined startups, you will. Take the time now to research the investment strategies of the future so you can be ready to strategically guide and manage your future clients’ assets without having to Google all the new methodology right before a crucial meeting. By being able to match your clients’ knowledge in these areas, you’ll not only build the trust essential to a successful working relationship but guide them through any challenging decision-making that may come their way. 

FinTech and InsurTech Makes Things Easier and Faster

Many businesses that have been able to rest comfortably on their laurels are now having to pivot and evolve based on the novel demands of a brand new generation. Just 20 years ago, the thought of depositing a check with your phone was laughable. Businesses like banks aren’t only developing new, streamlined hoops for us to jump through; they’re getting rid of the hoops altogether. The clients of today and tomorrow require easy-to-access and fully personalized platforms. With more options available than ever, businesses must quickly evolve, adapt, and overcome these new challenges or risk becoming obsolete. 

As an insurance or financial advisor, it’s vital to continually stay in the know regarding the latest and greatest when it comes to insurtech and fintech platforms so that you can keep up with your clients. These new developments mean that many industries that previously were shrouded in bureaucratic mystery are now becoming completely transparent, which can be scary for businesses that relied on the members-only access model to generate revenue. However, this also means that your clients will look to you for guidance and recommendations regarding which apps, websites, and software to integrate into their legacy and asset organization strategy. Be prepared to compare and contrast all the different options to help your clients make the decisions that are right for them. One size no longer fits all.

New Tools for the Toolbox

 Arguably some of the best things to come out of this brave new world are all of the incredible tools now available to insurance and financial advisors and their clients. From digital marketing and mobile-friendly websites to lead-generation platforms, there are more ways than ever for advisors to get creative—technologically speaking. These can help you not only better manage your clients’ assets and legacy plans on the back end but also stay more connected. Keep your finger on the pulse of the latest and greatest developments, and don’t be afraid to try out new digital options to see what works best for you and your clients. 

Artificial intelligence is a heavy-hitter that you’ll want to stay in the know about. With capabilities ranging from predictive analytics to behavioral finance, AI is set to change the way we do business. New insurtech platforms are incorporating AI to provide greater insight into client needs and provide alerts when new opportunities arise. With the latest tech boom, access and transparency are becoming major buzzwords that clients will be looking for when choosing an advisor. Tools like LegacyShield can help you digitally organize and safely store all of your clients’ important asset and legacy documentation while also providing fully transparent access to your clients and their heirs when they need it most.


Written by Michael Babikian at LegacyShield

Michael Babikian is an established innovator whose focus is implementing ways for disruptive innovations to help further his goal of protecting families. He helps bring insight to people that will empower them to not just accept the responsibility for their financial futures and securing their legacies, but also to be enthusiastic about the process.

Original Article