Assets Under Management

As a financial planner, your goal is to get your clients on the right track to retirement but also to increase Assets Under Management. It’s a win-win for your clients and for you. Yet, while striving to achieve this goal, some financial planners neglect the one thing that makes AUM possible – their client’s paycheck.

  • Many well-off clients depend on being able to earn an income.
  • Their paycheck is the asset upon which everything else is built.
  • By adding individual disability insurance to your solution suite, you can help your clients protect their ability to both maintain and increase the assets you can manage for them.
  • A 2021 report from PYMNTS found that approximately 40% of consumers earning more than $100,000 a year are living paycheck-to-paycheck.

Disability isn’t some farfetched worst-case scenario, either. It’s a real risk that, according to the Social Security Administration, will impact more than one in four of today’s 20-year-olds before retirement age. Around one in eight of today’s 20-year-olds will die before reaching retirement age, making disability a bigger threat than death for working-aged adults.

Protect and Increase AUM with DI.

DI doesn’t need to be all doom and gloom though, offering DI to existing clients and prospects can have profound impacts on your business, your clients retirement, and will make you wildly referable. Let’s look at some of the positives of DI and AUM.

  • ​$1,000,000 AUM =$10k in revenue (Assuming 1% AUM fee). This fluctuates with market volatility. As total AUM increases so do your AUM fees.
  • $150k of DI premium on the books over 5 years = Approx.$157k in total revenue.
  • $300k of DI premium over 10 years = Approx.$527k in total revenue.
  • DI renewals increase every year just like AUM fees.
  • You have increased client retention.
  • Your clients will have preserved their retirement accounts.
  • You have helped your clients preserve their dignity and control.

A Win-Win Situation

It’s a win-win. Your clients win because if an illness ever forces them to stop working, they’ll be able to continue their lives without liquidating their investments. And they may able to continue investing more – protecting and possibly increasing Assets Under Management.

You win by protecting AUM and by earning the extra first-year and renewal IDI commissions.

Ready to Grow Assets Under Management?

If you’ve been avoiding individual disability insurance sales because you’re not knowledgeable about disability insurance products, you can relax. Offering income protection is easier than you might expect – especially with DIS by your side.

We offer all the support you need to get started, including easy quoting and free coaching from an experienced Regional Brokerage Manager. Learn more.

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