Insurance as a planning tool

Marc Bérubé is founding president of Coaching Financier Trek. This year, this Laval firm celebrates its twentieth candle. Targeting doctors, professionals and entrepreneurs, Coaching Financier Trek boasts more than $200 million in assets under management in investment funds.

In September 2020, the firm launched Trek Korpo, a division that aims to reach high net worth individuals. Its services are specifically intended for well-established entrepreneurs who want to optimize intergenerational wealth transfers.

Why did you create a division within the firm? “Like the 1859 Private Wealth of this world, we want to signal to high net worth people that we know their reality. And that they can also recognize themselves in us,” explains Marc Bérubé. But unlike wealth management firms, Trek Korpo has not structured its offer according to portfolio management, “an area where it is very difficult to stand out,” notes the president of the firm.

Rather, Trek Korpo relies on its knowledge of complex insurance strategies aimed at reducing the tax burden and facilitating the transfer of assets upon death, which can include the famous capital dividend account (CDC). “Participating life insurance is our tool par excellence,” says Marc Bérubé.

Typically, Trek Korpo clients have a high net worth of at least $10M. On the one hand, the strategy involves very high insurance premiums. On the other hand, “we want to avoid, beyond any doubt, that our clients come to the end of their heritage during their lifetime”, explains Marc Bérubé.

Not to do

. Getting started too soon

“For high net worth clients, the sales cycles are very long. They must not feel that one would need to make these sales to live. It would keep them away. My number one recommendation is to build the relationship. You shouldn’t get into the sales battle too early,” says Marc Bérubé.

. To be in the approximate

“Surprisingly, few advisors speak coherently about complex insurance strategies. You have to know the products thoroughly and master the offer of six, seven or eight insurers. It’s not done by shouting scissors. You have to constantly study. It is also necessary to select the opportunities to combine its UFC according to the speakers and the themes which can raise our level of knowledge ”, indicates the boss of Trek Korpo.

. Start with entrepreneurs

According to some statistics, four out of five early-career advisors leave after three years. This is why Marc Bérubé urges new advisors not to target entrepreneur clients at the start of their career. “Unless you have a solid network of entrepreneurs already established, entering this market is tantamount to professional suicide. Before tackling it, you have to have proven yourself,” concludes Marc Bérubé.

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