Not just selling a product

Waxman, 27, grew up in Thornhill, Ont., north of Toronto, and attended the University of Western Ontario. After graduating with degrees in political science and religious studies in 2011, Waxman earned his life insurance and health insurance licences. Following several co-op and internship placements, he worked in the practice of his father, Peter Waxman, who has been in the insurance business since 1966. Samuel is in the process of taking over his father’s book.

Waxman launched MFG with a school friend, Ryan Tkatch, last year. They since have brought two other young advisors into the fold. MFG’s goal, according to Waxman, is to provide insurance and financial advice to millennials, especially those young adults aged, roughly, between 25 and 34.

Prior to co-founding MFG, Waxman had started building up the millennial side of his business while working for his father. The younger Waxman’s strategy was to introduce himself to the clients whose accounts he would eventually take over and initiate conversations about the insurance needs of their children. As a millennial himself, Waxman understands the challenges that members of his demographic group face.

Many of these clients know nothing about insurance, Waxman says, yet they are on the cusp of the life changes that will make insurance products necessary.

Waxman describes changing insurance needs throughout a client’s life. When clients are launching their careers, they might benefit from insurance as a “forced” savings plan. But as clients experience important life events such as marriage, home ownership and children – while taking on a good deal of debt – those clients should consider term insurance. As they get past middle age, personal wealth grows and debt burdens subside; at that point, clients might convert their term insurance to permanent insurance.

While Waxman’s focus is life insurance, he usually begins an insurance conversation with clients and prospects by discussing living benefits. Millennials often more readily understand living benefits because everyone knows someone who has had a heart attack, a stroke or cancer.

“We think we’re invincible,” Waxman says. “But if you get sick, your whole life changes. You can’t pay for anything; you can’t work; you can’t do anything.”

He shows prospects how affordable insurance coverage can be by breaking down premiums into daily amounts – which often are less than the price of a latte.

Waxman believes millennials are underserved by the financial services sector. These young adults often begin by working with their parents’ advisors and, he says, while such relationships can be rewarding, they can be fraught with concerns regarding age differences. The average advisor is up to three decades older than a typical millennial client. Millennials may be intimidated by older advisors and thus be reluctant to ask questions. Millennials also might expect to be passed along to another advisor when the parent’s advisor retires.

A millennial client dealing with an advisor closer to his or her own age, on the other hand, can look forward to a longer-term relationship.

Waxman, dealing with his clients, prefers face-to-face meetings. He recognizes that millennials turn to Google when initially researching anything, including insurance needs. In fact, it’s not unusual for millennials do research on their phones during a meeting. That’s why MFG is putting significant effort into keeping its website and social media presence up to date. One of the MFG team’s priorities is to launch a needs-analysis tool on its website – a brief questionnaire that will help clients understand their insurance needs, while enabling the firm to gather information about the client before a meeting. The MFG team also plans on having a strong Twitter presence and there’s an intra-office debate about whether to use Facebook.

Waxman, now living in the Yorkville neighbourhood in central Toronto, worked at home for about a year before moving into the MFG office in the northeastern section of Toronto.

Waxman doesn’t participate in many outside activities beyond TV (he’s a fan of Sons of Anarchy, among other critically acclaimed shows) and a twice-weekly workout with a personal trainer. Waxman reads only material that is relevant to his business. “For the most part,” he says, “work is my life.”

The importance of that work was driven home a couple of years ago, when Waxman faced his first death-benefit claim while working for his father. Samuel had arranged to meet with a client, who was in his early 60s, to discuss critical illness insurance for the client’s children. Shortly before the appointed meeting time, Waxman received a call from the client’s ex-wife: the client had committed suicide.

Waxman will never forget going to meet with the client’s ex-wife (the beneficiary of the life policy) at her home. “It was very nerve-racking going there,” he says. “You can’t prepare for that.”

But that somewhat harrowing experience underscored to Waxman the importance of his role. That lesson was confirmed a few months later, when he returned with a cheque for a significant amount of money. “That’s when I clued in,” he says. “I’m not just selling a product. When [clients] need [insurance], they’re going to understand the importance of it. It changes your life.”

That experience also showed Waxman that a catastrophe demonstrates the need for insurance. Several members of that deceased client’s family took out new policies with Waxman’s help.

Waxman is hoping to develop loyalty among his clients, partly because long-term relationships are important to him. He attended the same summer camp, first as a camper and then a leader, for 15 years. That is where he met his current girlfriend, now an accountant, when they were both 16 years old. Each of the four advisors at MFG are connected – either as friends since childhood or as university colleagues. Waxman signed up his firm with the Gryphin Advantage Inc., a managing general agency in Hamilton, Ont., because his father, a friend of the CEO, has worked with that firm for a number of years. “I’m a big believer in connections,” Waxman says.

One aspect of the insurance industry that he admires is the openness of other agents. “Everybody wants to help each other out,” he says.

While Waxman and his colleagues value advice from experienced advisors, they also are open to finding new ways of doing business. Team members are encouraged to bounce ideas off each other. “We will do mock [client] meetings,” Waxman says, “and answer what you think are stupid questions.”

He is optimistic that the firm’s emphasis on young professionals will make for a thriving business.

“We want driven, young [clients] who will be successful,” Waxman says. “We want young people to know that when they need insurance and financial planning, they are going to come to a young organization that understands them.”

© 2015 Investment Executive. All rights reserved.