Do you give your clients and friends tax advice without knowing their situation? By Vigilis
Published on
Surely not. Your financial advisor shouldn’t either! In fact, all financial security advisors are governed by the Autorité des marchés financiers (AMF) and have an obligation to carry out a financial needs analysis before you apply for an insurance policy.
What is a financial needs analysis?
Using your personal and financial information, the advisor will determine the products and amounts of insurance that will enable you to meet your obligations regardless of what life dishes out.
To do so, he will require the following data: the policies you already have, their characteristics, the names of the insurers, and other necessary information such as your financial and family situations, your obligations, your retirement plans, etc.
As some of the factors taken into account evolve over time, it is advisable to plan a periodic update, ideally when a significant event occurs in your life (marriage, death, birth, career change, etc.).
Do all advisors offer the same analysis?
Unfortunately not! The analysis can vary from a simple draft calculation done on the corner of the kitchen table to an exhaustive analysis, including advice on the strategies to adopt to minimize the tax impacts of a death, whether it is a spouse, business partners or other.
How do you ensure you get a complete analysis?
Simply request a copy of the proposed analysis, including methodology used, before meeting with the advisor. His reaction will certainly give you an inkling of the seriousness of the proposed proposed.
The solution to getting the most out of your insurance products: a financial needs analysis done by a professional.
What’s the advantage?
A structured analysis allows you to properly plan and secure your financial future. It will ensure that you access coverage perfectly tailored to your needs and that you only pay for the level that you really need. It is your right as a consumer, insist on it!
Vigilis financial security advisors have been serving CPA members for over 30 years and understand your reality. Don’t hesitate to contact one for all your questions or for personalized advice at all of your life stages.
By Vigilis