An Advisor Wished He Did More….
By: Mark Manginelli
September has always meant a little more for financial advisors and insurance professionals since it is “Life Insurance Awareness Month.” Most people we meet in this business understand the importance of having a solid foundation of insurances as a part of their plan to protect them against living too long, dying too soon or having troubles along the way. Early in my career, there were even times that although I knew deep down that even the cheapest, simplest form of life insurance was crucial for many of my clients, it sometimes felt very transactional. Some people just didn’t have the same urgency or worry about leaving this earth unexpectedly and it was my job to help them protect against that real (although minimal) risk. Growing up with a chronic, hereditary illness had given me a unique perspective on life. But my role as an advisor forever changed in September 2018 and I will never have that same doubt in making sure my clients and their families are financially protected.
This business affords us the ability to meet all sorts of unique individuals in every different walk of life. Up until this point, I was fortunate enough to never experience having to pay a death claim for a client. I had my share of disability insurance claims but thankfully I never had to deliver a check to a beneficiary after one of their loved ones died. Sadly, this would continue to be the case, but in a way I never hope to experience again.
I was introduced to a funny and outgoing medical student who would later become a friend. He was super smart and we shared a ton of similar interests outside of our careers. He was just about to graduate from med school and become an anesthesiologist making $250k+ right out of the gate. Being in our late twenties, life insurance just didn’t feel like a major priority for him but protecting that new-found income was. We worked together to secure the best disability policy in the market available for doctors but every attempt to lock in a cheap chunk of term insurance got turned down. He just couldn’t fathom spending an extra $50 a month for $1M or $2M of life insurance. Because of our friendship and growing relationship, I was able to keep nudging him on the idea of simply locking something in for him, his wife and eventual growing family. Every time I brought it up, however, it would be shot down and swept under the rug. There were only so many times I could suggest it before I felt like I was nagging or desperate.
Shortly after, he and his wife found out they were expecting a baby and a few months later, they welcomed a healthy little boy into the world. Things were going great. Mommy and baby were healthy and they were figuring out their work/life/baby balance. Just as things couldn’t seem to be going any better for this young couple, the most gut-wrenching news came across my phone. One night in September, this smart, successful, and ambitious new father went to bed and sadly, never woke up. My world as an advisor will never be the same from that moment moving forward. He died with only a small life insurance policy from his hospital but most of it was taxable to his wife. He also had significant college and medical school debt, leaving little for his family after that.
I never thought I would want to have the ability to deliver a life insurance death benefit check more in my life than I did in that moment (and still to this day). I beat myself up for months trying to figure out what I could have done differently in getting him to understand the importance of that cheap policy. My career as an advisor held such a new meaning when I wasn’t able to deliver that check to his wife and baby boy. My heart still hurts for their family and although money will never be able to bring him back, the financial security, college funding and income replacement I could have provided his wife and son for the rest of their lives would have at least made it a little easier from a financial standpoint.
The moral of this story for my fellow advisors goes beyond the transaction. Life insurance provides an incredible safety net to protect our clients against these unexpected atrocities. Until we experience an event like this, we might even forget the real reason why we do what we do every day. I hope no other advisor needs to face a client’s loved ones without a check in their hand. Please remember how powerful this type of planning is and why we love insurance so much. It’s not always sexy and it’s certainly not always the most glamorous of conversations but I can assure you, it’s a much better situation when you’re on the other side. And to the fathers, mothers, partners, business owners, spouses etc., consider who depends on you and how you can make sure they never experience what my friend’s family has financially.
Much love from Mark and the Fortis Family. May you all have a happy and healthy rest of 2020.
