How to fuse financial wellness skills into your insurance practice

More than half of today's workers are worried about their financial well-being. Insurance professionals can help.

Financial demands have led to rampant chronic economic anxiety within households nationwide, and that has only been exacerbated by the effects of COVID-19. (Shutterstock)

With financial stress at an all-time high due to the long-lasting economic fallout from the coronavirus pandemic, insurance agents can underscore their role as trusted advisors by offering resources that help clients maintain or improve their financial health.

Ask yourself: What is keeping your clients from improving their financial situation? Is it understanding how to manage debt? Knowledge and information about mortgages or financing? Choosing the most beneficial savings program or investing effectively? Access to money management resources?

Every client is unique. But research indicates that roughly three out of four of today’s workers are concerned about at least one aspect of their financial, social, mental or physical wellness as a result of COVID-19, and the majority of them (52%) are most concerned with their financial health.

How you can help

Financial stress is at an all-time high as widespread layoffs and furloughs have left many people questioning the stability of their employment. A 2019 Stress In America study from the American Psychological Association found that 64% of adults identified work and 60% identified money as significant sources of stress, making them the most common personal stressors.  A more recent survey would likely paint a bleaker picture.

Another alarming statistic is that 2/3 of Americans could not pass a basic financial literacy exam. For many, financial training was never a part of their formal education prior to entering the workforce. When they did enter the workforce, they were forced to balance student loan debt, living expenses, long-term financial planning, and maintain their financial stability for the first time with minimal knowledge or guidance.

These financial demands have led to rampant chronic economic anxiety within households nationwide, and that has only been exacerbated by the effects of COVID-19.

Four ways to assist your clients now

Communicate. Encourage open communication about any concerns clients may have for the well-being of themselves, their families, their colleagues, customers, or communities. Clearly communicate the escalation structure should concerns arise and define the roles of your leadership/management team.

Modify existing benefits. Make sure your clients are well-informed regarding the resources available to them.

Foster teamwork. Your clients are your greatest asset. They may be willing to make sacrifices today if it means tomorrow’s survival. Ensure you have the right tools and processes in place to keep your clients engaged and productive while they work from home.

Offer financial wellness support and services. Provide your clients with financial education resources, online money management and budgeting tools, financial counseling and financial solutions like early wage access, short-term loans, and student loan services. They need your help navigating these uncertain times, and they need resources to support them financially.

Make financial wellness a priority

Most organizations have experienced a level of transition to a virtual working environment, which demonstrates concern and support for their physical well-being and health. Stress levels are heightened, and the number one cause of stress is money. This is why clients need access to financial wellness resources now more than ever, and that starts with employers. Employers that currently offer a financial wellness program need to make sure their employees are aware of the resources and know how to access them.

By giving clients the tools and resources to cope with their current financial situations and make better financial decisions, they will feel confident that their health and well-being are high on their employer’s priority list. As the world continues to work its way through the COVID-19 pandemic, employers’ ability and willingness to support client’s financial health and well-being will prove more valuable than ever.

David Kilby is president and CEO of FinFit, a fintech company that provides over 150,000 employers with a unique financial wellness benefit platform. These opinions are the author’s own.

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