My Financial Advisor Is Quitting. What Should I Do?

This post was originally posted on Planner Bee.

Losing your financial advisor can be unsettling, especially when they’ve been an integral part of your financial planning. However, it’s important to remember that this situation isn’t uncommon, and with the right approach, you can ensure your financial goals remain on track. Here’s a step-by-step guide on what to do if your financial advisor leaves for another firm, or even the industry.

1. Stay calm and assess the situation

Keep calm before carrying on. While it’s natural to feel concerned, it’s also important to keep your emotions in check. Take a moment to assess the situation before making any hasty decisions.

Remember that your investments, insurance policies, and financial plans are not in jeopardy simply because your advisor has left. Your insurance policies are contracts between you and the insurance company, not your agent.

This means that the terms, conditions, and coverage of your policies do not change when your advisor leaves. Your premiums, benefits, and coverage remain the same, and your policies will continue as long as you keep up with your premium payments.

2. Contact your insurance provider and find out who your new agent is

In most cases, the insurance provider will assign a new advisor to manage your policies. In theory, this new agent will take over the responsibilities that your previous agent handled, such as answering your questions, helping you make changes to your policies, and assisting with claims.

However, the truth is, this new insurance agent who inherits your portfolio will be taking on more responsibilities without gaining significant benefits. While they may receive any remaining commission that hasn’t been fully paid out to your former agent, it’s typically not a substantial amount. More often than not, the new agent does not get any commission. Ultimately, it’s up to your new advisor to decide if he or she wants to reach out to you.

Nonetheless, you should receive communication from the insurance company informing you about the departure of your previous advisor while also providing you with the contact information for your new agent. If you don’t receive this information promptly, it’s a good idea to contact the insurance company directly to find out. After all, this individual will take over your account, so it’s important to establish communication with them early on.

3. Review your policies and coverage

Take this opportunity to review all your existing policies and financial plans. Make sure you have a clear understanding of your current financial situation, including any upcoming payments, renewals, or policy changes. Reviewing your policies will also help you prepare any questions or concerns you might have when you meet your new advisor.

During your different life stages, the coverage you require might also differ. Take this opportunity to revisit your insurance coverage. To better understand if you’re adequately insured, you can download the Planner Bee app on the App Store or Google Play, input your policy into the app, and get an assessment of your coverage adequacy.

4. Meet your new agent

Once you’ve gathered all the necessary information, schedule a meeting with your new agent. In most cases, you don’t need to take any immediate action. Your new agent will be available to assist you with any future needs related to your policies.

However, it’s a good practice to reach out to your new advisor to introduce yourself and establish a working relationship.This is your chance to get to know them, understand their approach, and ensure they are aligned with your financial goals. Don’t hesitate to ask about their experience, qualifications, and how they plan to manage your account.

5. Update your contact information

Ensure that your contact information is up to date with your financial services provider as well as your new advisor. This includes your phone number, email address, and mailing address. Keeping your information current ensures that you receive all important communications regarding your policies and accounts.

6. Monitor your policies

After the transition, it’s crucial to monitor your policies closely. Keep an eye on your accounts to ensure everything is running smoothly and that there are no discrepancies or unexpected changes. Regularly checking your statements and policy details will help you catch any potential issues early.

7. Seek a second opinion if necessary

If you’re unsure about your new agent or the advice they’re giving, don’t hesitate to seek a second opinion. Consulting another financial advisor can provide you with peace of mind and ensure that your financial plans are still on the right track.

Need help getting in touch with another financial advisor? At Planner Bee, we have a team of licensed experts to review your portfolio without obligation, and answer any questions you might have.

8. Stay informed

Last but not least, stay informed about the financial industry and any changes that might affect your policies. Understanding the broader market trends and regulatory changes can help you make informed decisions and better navigate any future transitions.

Navigate your financial future with confidence

In conclusion, while the departure of your financial advisor can feel daunting, it’s important to remember that your financial plans and investments remain secure. By staying calm, promptly connecting with your new agent, and closely monitoring your accounts, you can ensure a smooth transition and continue working towards your financial goals.

Don’t hesitate to seek a second opinion if needed and stay informed about industry changes to keep your financial future on track. Taking these proactive steps will help you navigate this change with confidence and peace of mind.