The number of Americans seeking financial guidance is growing by the day. According to a report from Northwestern Mutual, 28 percent of Gen Z started seeing a financial advisor over the past year.

For advisors, there could be no better news. Today’s potential clients span the entire spectrum: from young adults who are just starting to save for the first time to millennials and Gen Xers who are well-established in their careers to Baby Boomers who are approaching retirement or already there. But how should advisors’ messaging change for each of these distinct groups?

While each generation has its own unique needs, one force that will affect almost everyone is the much-talked-about Great Wealth Transfer. Over the next 20 years, an estimated $50 trillion to $70 trillion is expected to be passed down to new generations — most of it coming from Baby Boomers to their heirs (Gen X, millennials, and yes, even Gen Z).

Today’s advisors need to be flexible. The strategies that worked to win the business of Baby Boomers years ago won’t work for younger generations turning to financial advisors for the first time or seeking guidance in the wake of an inheritance.

How Insurance Can be a Powerful Differentiator for Advisors

For advisors, the Great Wealth Transfer is simultaneously a boon and a crutch. It’s a boon because it means many new individuals will be seeking financial advice after receiving an inheritance. And it’s a crutch because, at times, it seems like it’s all advisors ever want to talk about. Talking about the Great Wealth Transfer isn’t a differentiator; offering creative, unexpected solutions is.

That’s where insurance solutions can come into play for advisors.

One versatile insurance solution is cash value insurance. Unlike term life insurance, which provides coverage only for a fixed period of time, cash value insurance guarantees a payout. (Of course, there are trade-offs: Premiums for cash value insurance are higher than for term life.)

However, cash value insurance offers benefits that more than offset the higher premium costs. The power of a cash value policy lies in the way it can benefit multiple generations — often simultaneously.

How Cash Value Insurance Benefits Gifters

One of the most common concerns for retirees is the fear that they’ll run out of money. The desire to leave some money for inheritance can mean retirees spend little of their hard-earned savings, even if there’s little risk of ever running out of money. A term-life insurance policy can help solve this problem. By guaranteeing a payout upon death, the older generation can gain the peace of mind knowing that their children will receive an inheritance — no matter what.

How Cash Value Insurance Supports Beneficiaries

The truth is that most people have no idea how complicated receiving an inheritance can be. Why should they? Most people only find themselves in this situation once. But inheriting money from loved ones is much more complicated than receiving a direct deposit. Depending on its structure, the estate may need to go through the time-consuming probate process, which doesn’t just hold up disbursement of funds but can cost money, thanks to expenses like attorneys’ fees.

For Gen X, millennials, and Gen Z, who will eventually be on the receiving end of the Great Wealth Transfer, a term life insurance policy payout helps provide a cushion during this inheritance process. Typically tax-free, these payouts provide beneficiaries the support they need to actually manage the details of their family’s estate. The life insurance payout can also be used to cover any additional taxes incurred by the estate.

By planning now, advisors can work to cultivate clients across generations, providing them with lasting solutions leading up to and after an inheritance.

Communicating with Generations New to Advising

Winning new clients won’t just come from offering the right solutions. It will require the right kind of communication. The younger generations turning to advisors for the first time have had completely different life experiences than older generations, who have been preparing for retirement for decades.

The advisor’s job is to meet clients where they are. That starts with communication. Here are three things to keep in mind when meeting with new clients:

● Put in the work: Many prospective clients seeking financial advice come from groups that have historically been underserved by the industry. Or they’re simply new to advising. It’s important to make finances as un-intimidating as possible for this group. Make the extra effort to understand your prospective clients’ experiences, so you can understand their needs. Clients may not require an advisor who’s just like them, but they’re searching for someone who can at least relate to their circumstances.

● Go digital: Younger generations are getting their financial advice on the internet. An H&R Block study recently found that 70 percent of Gen Zers say they’ve been influenced by a financial trend they saw online. Instead of trying to find new clients through the traditional channels, spend time where those clients actually are. That means building an online presence.

● Get personal: Younger generations may not have the same goals for their finances that you had at their age. That’s okay. Your job as the advisor isn’t to give the advice you’d give to your past self; it’s to listen closely, help people express their wealth goals, and offer personalized planning services to make those goals attainable.

The AIMCOR Advantage for Advisors

We are committed to serving all generations with the insurance solutions that fit their goals and lives. Our team is happy to provide insights, financial education, and a proactive planning review toolkit to help guide your conversations with new clients and help you connect them to the right solutions.

Talk to a member of our team today to begin strategizing how your practice navigates the Great Wealth Transfer — and capitalizes on all the opportunity that comes with it.