How can your permanent life insurance clients become private banking clients too?

Yet many of these clients use only traditional banking. It makes sense to turn these clients into private banking clients as well.

To even have the discussion, clients have to understand that there are other banking options. They may not. Most clients are aware of private banking in general. However, even if they’re business owners or professionals – which fits the target market – they may think of private banking as an exclusive club that’s not for them.

Most big banks do have strict entry guidelines, which may or may not meet your clients’ situation.

At Manulife Bank, things are different. Clients can bring in a line of credit based on a life insurance policy, and that’s enough to start with private banking. Even if clients don’t have an array of products with Manulife Bank from day one, they get the same level of service.

That gives your insurance clients access to private bankers – a single point of contact who delivers an integrated banking relationship.

For advisors, Manulife Bank’s referral system means you get compensated and remain a key figure in the client relationship. Some private banks exclude the independent advisors in their offering.

Coordinated approach 

High-net-worth clients are usually busy people. They don’t necessarily have the time (or desire) to work with multiple banking experts who often repeat goals and share the same background information over and over.

Manulife Private Banking allows for a more coordinated approach. A dedicated private banker reviews a client’s financial situation and recommends banking solutions tailored to their circumstance. The benefit is a holistic view of the client’s portfolio and needs which can include both their personal and corporate situations.

This approach enables a combination of strategies. Most private banking clients have significant permanent life insurance in place as both an investment and an estate planning tool. Clients can use borrowing to invest and, in turn, add to their wealth.

Strategies include insurance-based lending up to 100% of a policy’s cash surrender value and flexible lending on non-registered investments from 75% of market value.

If anything, a smaller private bank can offer even more personalized services and new solutions. That’s a big advantage for your clients.

Look beyond immediate needs

What gets in the way of taking this sort of holistic view of a client’s financial picture and moving toward private banking?

In most cases, the client’s immediate need is the focus of discussion. The conversation revolves around a specific piece of business. It’s easy to lose sight of the bigger picture of potential opportunities.

Advisors should know their clients’ profiles well enough to see who’s suited to private banking in order to have that discussion – especially when the entry requirements aren’t quite as rigid.

Clients will be thrilled to get that extra level of service, and will be grateful when you recommended it.

To learn more about Manulife Bank’s insurance lending solutions and Private Banking team, visit the Manulife Bank Advisor Portal.