Beyond Disability: Executive Benefits, and Succession Planning for Clients Who Own Businesses
The economic and competitive landscape for business owners today is experiencing tectonic shifts. The Pandemic left indelible impressions on nearly every aspect of business. Uncertainty has an uncanny way of creating new rules for how companies and their employees relate to one another moving forward. Even before the crisis, retaining top talent required benefits packages that included Disability Insurance to protect key employees’ income. Today, however, these needs have increased substantially.
Business owner clients rely on their advisors to help them meet these needs in a holistic manner. The focus now must be on how to help these clients not only retain talent through enhanced benefits but also on strategic planning for business succession. We cannot know the future, but we can prepare for it. In business, that means having a solid risk mitigation plan in place at all levels and that is what Regis Financial Partners can help you do for your clients.
The problem with Disability Insurance alone: The income gap
While DI can help key employees and stakeholders by providing peace of mind in the event of a disability, it rarely if ever compensates to the degree at which they are truly covered from their losses. The fact is that the greater their income, the larger the gap becomes between their salary that they rely on and the coverage that they are offered. This is where additional solutions are needed most. Executive Benefit packages are designed specifically to address this gap while also playing an essential role in maintaining the competitive edge and hiring power of any business.
Business clients appreciate a holistic approach to risk mitigation
Being a hero for your business clients means being able to offer an end-to-end suite of solutions that match their needs and goals. Regis Financial Partners empowers agents and advisors to expand their offering to their business clients. Rounding out their risk strategies to accommodate their needs affords the agent an opportunity to deepen their client relationship while giving the client better options to stay ahead of their competition.
Succession planning is more than simply ‘What comes next?’
Business Succession Planning is an art form. Beyond the obvious need to create a structure for the business to continue to thrive after the loss of key stakeholders, succession planning provides the groundwork for the heirs of the founding members to maintain the successful legacy that the business leaves behind.
Whether it’s a buy-sell agreement to ensure a smooth transition while protecting the interests of the owner or the maintenance of group policies beyond the exit of key stakeholders, succession planning incorporates diverse strategies to meet the goals of your clients.
Business Valuation as a foundational tool for Succession Planning
The importance of business valuation in the context of succession planning cannot be overstated. A precise and objective valuation provides a concrete foundation for a smooth transition of ownership. It equips successors with an accurate understanding of the company’s worth, enabling realistic forecasting and strategic management decisions.
Valuation accuracy ensures fairness in equity allocation among heirs or new owners, reducing potential conflicts. In addition, an updated business valuation is critical in the event of unexpected circumstances, such as the sudden passing of an owner, providing a clear roadmap for the business’s continued operations. It can be said that business valuation is not merely a financial exercise, but a strategic tool that underpins the continuity and future performance of an enterprise.
Have the conversation about succession with your clients
During the renewal period, advisors and agents who provide Disability Insurance to their business clients have an opportunity to assess their client’s needs beyond these policies. With a partner who can help navigate Executive Benefits and Succession strategies, an advisor will be able to offer their client a more comprehensive suite of services.
Working with an experienced Broker General Agency that specializes in the needs of successful businesses expands the opportunity to provide robust client service for advisors. Sometimes, simply asking the right questions can yield multiple opportunities to better serve your client. Experienced BGAs like Regis Financial Partners can provide the agent with everything they need to present their client with a complete package of risk solutions to help them safeguard their business today and in the future.
