Coronavirus & Estate Uncertainty – Effects on Legacy Planning & Impending Future Prospects
In recent times, there has been a remarkable surge in the number of wills, witnessing a 143% week-on-week increase since the onset of the lockdown, with projections anticipating a rise to 220%. This shift challenges the conventional belief that legacy planning and will creation were exclusively for the affluent. Now, it's widely recognized that safeguarding assets and ensuring family protection necessitate a well-thought-out will.
The lockdowns have accelerated the reliance on the internet, even extending to estate planning. While initially considered a temporary change, there's a growing possibility that these digital transformations might become a permanent fixture, reshaping the future of the insurance industry.
Potential Future Impacts on Legacy Planning
Insurance companies with established online systems faced initial challenges during upgrades, but the investment proved valuable as they navigated the less-crowded market effectively when lockdowns commenced. The demand soared by almost 40%, driven in part by financial advisors advocating for diverse investment portfolio holders to create wills.
Legacy planning, including financial and business succession planning, might find a lasting home online, impacting how individuals secure their legacies.
Legacy Planning And Force Majeure – Adapting Insurance Claims During COVID-19
Force majeure, or "superior force," plays a pivotal role in contracts, encompassing events beyond either party's control, such as epidemics. COVID-19 triggered its application where government restrictions impede the execution of clauses within wills. However, its effectiveness hinges on inclusion in the will itself, emphasizing the need for thorough client advisement and contract scrutiny.
Notably, most insurance companies are now incorporating force majeure clauses into their contracts due to the ongoing pandemic.
The Evolution of Estate Planning: Safeguarding Family & Businesses
People aspire to simplify their loved ones' lives after their passing, making wills an essential tool. Yet, there's a shift towards trusts, a more immediate and less cumbersome financial support mechanism. Unlike wills, trusts operate in the intended beneficiary's name, minimizing paperwork and legal challenges in probate courts.
Suggesting trusts to clients is integral to advancing their legacy planning goals, but it's crucial to distinguish between trusts and wills.
Amid the digital transition in the insurance industry, uncertainties surround estates. Existing and potential clients are seeking reassurance in this evolving landscape. Leveraging online tools, with the potential for long-term cost savings, is advisable.
IronClad Family offers a comprehensive solution for insurance agents navigating the online shift in the industry, streamlining client interactions, and estate planning. Contact us today to discover more!
