Over the 40 years that Searcy Financial Services has been serving clients, we have helped clients purchase Life, Disability and Long Term Care insurance policies to protect their future. While insurance planning was, and will continue to remain, an important aspect of financial planning, we will no longer act as an agent to complete the purchase process. This act allows our firm to be known as a “Fee-Only” firm with various licensure and accreditation boards, as we will no longer receive any commissions for the sale of new insurance nor receive any commissions for the sale of insurance in previous years.
We will continue to assist our clients with insurance matters, including, but not limited to: analysis of existing policies, communications about new and existing policies, determination and recommendation for appropriate coverage and simply being available to explain how policies work and fit (or don’t fit) into their overall financial situation. In essence, clients can expect to receive the same level of guidance and planning regarding their insurance needs, but the actual implementation will be delivered by a professional in our network.
After testing a very long-standing relationship with an excellent provider, we will be transferring the servicing commissions of existing policies plus the implementation process for acquiring new policies to a third-party team who will now be handling the process of supplying detailed explanations of proposed coverage (while keeping us informed of all proposals), completion of the application forms, arranging medical exams, following the application through underwriting, resolving issuance issues and policy delivery. For such work, they will receive the commissions associated with the acquisition or ongoing service of insurance policies.
Why the change?
Our goal in acting as a fiduciary to our clients has always been to fully disclose potential conflicts of interest, including a written disclosure of how we are compensated when helping our clients with insurance. However, with the rapid changes within our industry, we have chosen to remove every possible “appearance” of potential conflicts of interest – whether real or imagined. We want our clients to continue to have the utmost confidence in our firm and eliminate the potential for any questions before they may arise.
Our conversion to a “Fee-Only” financial advisor firm allows us the ability to focus more on the impact of insurance to clients’ overall financial plan and eliminate the time needed to facilitate the implementation. When helping our clients implement their insurance in the past, we extended our fiduciary duty of care to this practice because we knew if they chose to work with a provider outside our network, they may find agents that did not have their best interest at heart. By working with a vetted professional, we can help to ensure our clients have access to the coverage they need and are not subjected to potential unscrupulous business practices. This is just another step in our quest to provide our clients with excellent service.