When a client experiences a major life event — marriage, the birth of a child, purchasing a home, starting a business — their first call is often their insurance agent. These moments don’t just create insurance needs. They also represent an opportunity to uncover pressing estate planning needs, as well.
Thanks to new technology–– DIY estate planning software platforms designed specifically to service the clients of non-lawyer insurance agents––It’s now possible for producers to address both the client’s immediate insurance needs and their estate planning needs, without crossing the line into the unauthorized practice of law.
But these aren’t just life insurance matters. Each of these life events also has critical ramifications for estate planning, as well: Beneficiaries need to be updated not just on life insurance policies, but also on retirement accounts and annuities. Guardians may need to be designated - and for that families need a will. Families may need to create a trust to hold potential death benefits for minor children. Real estate or other assets may need to be transferred to a trust.
This post serves as a guide for non-lawyer insurance agents who want to provide estate planning support, prevent asset erosion, and build multi-generational client relationships—without violating unauthorized practice of law (UPL) rules.
The problem: The traditional estate planning industry, dominated by estate planning attorneys, is not up to the task.
For example, the 2024 Charles Schwab High Net Worth Investor Survey of wealthy Americans with at least USD1 million in investable assets found that only 18% of respondents had an estate plan. And over 40% of those surveyed didn’t even have a will.
Clearly, these families have assets. And many have children. Why isn’t the important work of estate planning getting done?
First, there’s a major shortage of estate planning attorneys. And a large percentage of them are focused on the more lucrative HNW and UHNW markets.
This results in higher fees that leave much of the market in the cold. Attorneys often charge thousands of dollars to draft a will, and even more to draft and fund a revocable trust. A basic power of attorney document and an advanced healthcare directive each add additional cost.
And lastly, estate planning attorneys are simply not in frequent contact with most clients. They aren’t in front of heads of households at the moment key estate planning decisions should be made, and actions taken.
Insurance agents are.
For these reasons, insurance professionals are ideally situated to pick up the slack. And recent advances in technology make it easier than ever for the average insurance agent to do it.
What’s At Stake? A Whole Lot of Money
Over the next 20 years, Baby Boomers will transfer some $80–$100+ trillion or more in wealth to their heirs.
That represents a lot of business for financial professionals of all types. But those assets and opportunities will go to agents and advisors who position themselves before the transfer happens.
“I skate where the puck is going to be, not where it has been.”
–Wayne Gretsky
Insurance needs don’t stop with an inheritance. Heirs often need life insurance for growing families, coverage updates for surviving spouses, business insurance when ownership changes, and later, long-term care and income planning.
But when a Baby Boomer client dies, agents rarely have a preexisting relationship with their heirs. Simply delivering a life insurance death benefit––if you even do that personally––doesn’t give you time to build one.
Even just calling heirs and introducing yourself while you’re updating a client’s insurance and estate plan gives you a meaningful jump over a lot of the competition. But once you make that connection, there’s a lot more you can do.
For example, you can offer to facilitate a family wealth meeting - either in person, via Zoom, or both, to walk through the current insurance and estate planning, and go over all the contingencies. This process, done correctly, often reveals important gaps. And you’re in a position to help address them.
Meanwhile, your client’s adult children need the same work done that you did for their parents: They’ll see what you did for their parents and see they need long term care and/or disability insurance, now while they are still young and healthy and still qualify. One estate planning conversation often reveals to multiple follow-on needs:
- Coverage reviews for surviving spouses
- New policies for adult children starting families
- Buy-sell funding or key-person coverage for heirs stepping into business roles
- Long-term care or annuity planning
Estate Planning Transforms the Insurance Conversation
Estate planning flips the traditional insurance sales appointment on its head––for the better.
Instead of starting with products, the conversation starts with people and responsibilities. Who depends on this income? Who makes decisions if someone is injured or dies? How long would income need to continue? What happens if a disability or long-term care event interrupts earning power or drains assets?
Once those questions are answered, insurance solutions often follow naturally. Life insurance addresses immediate and long-term income needs for survivors. Disability insurance protects earning power while someone is still alive but unable to work. Long-term care coverage helps prevent a health event from undoing a lifetime of savings. Income-focused products help families manage cash flow as assets are transferred or responsibilities change.
Because the planning framework comes first, clients understand why coverage matters before discussing what to buy. Insurance becomes a logical response to clearly defined risks, not a product introduced out of context. For agents, this leads to more productive conversations and stronger, longer-lasting client relationships.
By introducing estate planning, you’re meeting a critical need. You’re also transforming your role from serving a single policyholder to being a trusted expert advisor for the whole family. No 1-800-Life-Insurance-type website can match that.
How Technology is Disrupting the Traditional Model
Technology is making estate planning accessible for many families who have been poorly served by traditional estate planning approaches.
Today’s insurance professionals have access to software solutions that greatly simplify the process, facilitates client education, and empowers clients to make decisions for themselves and take action right away.
Agents can help organize this information and quickly identify planning gaps––without personally drafting documents or otherwise straying into the unauthorized practice of law.
The technology also provides protection for agents. Clear guardrails separate education and organization––services that non-lawyer financial advisors can clearly legally provide––from specific legal recommendations and the drafting of legal documents.
With solutions like Estately, the agent does not touch these processes–all templates are locked to ensure documents remain fully attorney-drafted outside of designating selections. This allows non-lawyer agents to help families confidently while avoiding the risk of unauthorized practice of law.
For more complex situations that require an attorney’s input, Estately facilitates custom document drafting in all 50 states. The result is better outcomes for underserved families—and a practical, compliant way for insurance agents to deliver more value to the families they already know.
Conclusion
Insurance agents are uniquely positioned to lead estate planning conversations. With a purpose-built estate planning platform for insurance agents, you can help families take action, strengthen relationships with heirs, and grow your business — without taking on legal risk.
Insurance agents are often the first financial professionals to engage young families. You often have the longest and deepest relationship with middle market and affluent clients compared to any other advisor. With modern estate planning software, insurance agents can help clients get organized, involve their families, and take action—all without giving legal advice or taking on unnecessary risk. Insurance agents who engage clients on estate planning matters are building a framework that helps them better serve clients and develop durable, multi-generational relationships with client families. That helps build a foundation for continued business growth.
