In the 1950s and 1960s, the early leaders of financial planning built businesses and professional standards to meet clients’ needs, primarily focusing on taxes and insurance.1 In the 1980s, after mostly flat stock market returns in the 1970s, investing and financial planning took off, partly due to the market’s gaining momentum and the growing availability of 401(k) plans.2 While investing continues to get most of the attention these days — especially with the wild market swings driven by speculative trends — it’s the less exciting yet foundational components of comprehensive wealth management solutions, including insurance, that can have a significant impact on your overall financial success.
Why insurance is important
Nearly half of Americans (48%) don’t own a life insurance policy, yet more than one-third (38%) would face financial hardship within six months of the unexpected death of a wage earner.3 These numbers show the need for aligning insurance with financial planning to protect your loved ones. Some estate planning vehicles can provide you with insurance as well as tax benefits, such as irrevocable life insurance trusts (ILITs), spousal lifetime access trusts (SLATs), and more.
Property and casualty insurance are crucial when you have physical assets, children, multiple teen drivers, real estate, collectibles, and digital assets, as there could be risk exposures without proper coverage. If you’ve had insurance for many years, it’s wise to have a financial professional review your existing coverage. Regularly checking for gaps in coverage is essential to limiting your risk.
Additionally, living in certain parts of the country where the number and intensity of natural disasters are increasing may have you worried, especially because many private insurers are dropping homeowner policies while recent hurricane, tornado, and wildfire damages and losses have been devastating. At Mercer Advisors, we offered victims of the January 2025 Los Angeles area wildfires complimentary financial guidance, including how to navigate insurance claims. Our team of insurance specialists can also help with navigating the home insurance market.
Another important insurance need is for health issues, such as long-term care and disability coverage. For instance, does it make sense for you to have long-term care through a life insurance policy? Is disability insurance still worth it? Additionally, financial planning for family members with special needs shouldn’t be overlooked.
Like many other aspects of financial and estate planning, one solution does not fit all. Nor will it apply at every life stage or personal circumstance. There are basic guidelines for which insurance might be appropriate and when it can be helpful, but these choices should be reviewed with a broader understanding of personal finances in mind.
The separation of financial planning and insurance
Historically, many registered investment advisors (RIAs) have shied away from offering direct advice on insurance products to avoid compromising their fiduciary obligations (acting in a client’s best interest) and to avoid regulatory complexities. From a business perspective, these reasons made sense. However, this approach leaves a gap in financial planning, neglecting clients’ entire financial wellbeing. With recent innovations in creating fee-only solutions, removing direct commissions from transactions, and integrating insurance platforms into RIA businesses, the ability of RIAs to include insurance as a core offering is more viable than ever before.
Often, RIAs construct comprehensive financial plans for clients and implement most of the recommended actions. But when it comes to protection and risk management, advisors may refer their clients to outside insurance professionals and brokers, hoping that they’ll also operate according to the RIA’s plan. Unfortunately, when not managed in a comprehensive approach, financial plans can go awry. For example, when someone makes a financial decision in “panic-mode,” as many did during the pandemic by purchasing life insurance, it can short-cut the process of determining whether the product is for the right amount and fits into their overall financial situation and goals.4
Bringing together financial planning and insurance
The good news is that you don’t need multiple advisors anymore to meet all your financial needs, including insurance. Mercer Advisors offers insurance as part of our integrated wealth management solution which also includes financial planning, tax planning and preparation, estate planning, and investment management. And to streamline it for our clients, we provide one hand-picked wealth advisor who coordinates specialists from the rest of our practice teams.
If you’re not a Mercer Advisors client and are wondering how insurance policies might fit into your life’s journey, and your family’s, or you’re considering ways to reduce your worries about money, let’s talk.
1 “The History And Future Of Financial Planning.” Bitcoin Magazine, 30 Apr. 2022.
2 “S&P 500 Returns since 1960.” Officialdata.org, 5 Feb. 2025.
3 “Life Insurance Statistics and Trends For 2025.” Choice Mutual, 10 Oct. 2024.
4 “Life insurance sales increase due to coronavirus pandemic.” CNBC, 14 Oct. 2020.
Mercer Advisors Inc. is a parent company of Mercer Global Advisors Inc. and is not involved with investment services. Mercer Global Advisors Inc. (“Mercer Advisors”) is registered as an investment advisor with the SEC. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements.
All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Some of the research and ratings shown in this presentation come from third parties that are not affiliated with Mercer Advisors. The information is believed to be accurate but is not guaranteed or warranted by Mercer Advisors. Content, research, tools and stock or option symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. For financial planning advice specific to your circumstances, talk to a qualified professional at Mercer Advisors.
Tax preparation and tax filing are a separate fee from our investment management and planning services. Mercer Advisors is not a law firm and does not provide legal advice to clients. All estate planning document preparation and other legal advice is provided through select third parties unaffiliated to Mercer Advisors. Mercer Global Advisors has a related insurance agency. Mercer Advisors Insurance Services, LLC (MAIS) is a wholly owned subsidiary of Mercer Advisors Inc. MAIS provides individual life, disability, long term care coverage, and property and casualty coverage through various insurance companies. For Mercer Global Advisors clients who wish to purchase insurance products, MAIS has entered into a non-exclusive referral agreement with Strategic Partner(s), where the Strategic Partner will provide necessary services relative to the marketing, placement, and servicing of the insurance products, including without limitation preparing and presenting illustrations, supporting the underwriting process, assisting with the completion and execution of applications, delivering policies, and servicing in-force business. MAIS and the Strategic Partner will be listed as either “agents” or “co-agents” on the policies. While Mercer Global Advisors does not receive a referral fee, Strategic Partner receives a percentage of the commission revenue. MAIS and Strategic Partner do have a revenue sharing agreement.
