Financial Services Institute Launches First-of-Its-Kind Health Insurance Plan for Financial Advisors

April 7, 2021

Enables Financial Advisors to Purchase ACA-Compliant Individual Plans Up to 50% off Open Market

The Financial Services Institute (FSI) announced the launch of its national health insurance program, a new way for independent financial advisors to obtain ACA-compliant major medical health insurance for themselves, their licensed staff and their families at a fraction of the cost of plans on the open market.

Previously, advisors’ options for obtaining health insurance were limited to purchasing plans directly from insurance carriers, or via the online marketplaces established by the Affordable Care Act (ACA). Both options come with high premiums, deductibles and out of pocket maximums, and financial advisors typically do not qualify for subsidies for ACA plans due to their income levels.

Chris Paulitz, FSI’s Head of Strategic Initiatives, said, “The beauty of the independent model lies in the freedom it gives advisors to open their own business and run it as they choose. Yet health care premiums larger than their mortgages can constrain their ability to reach their full potential. Our health insurance plans level the playing field for financial advisors and they no longer have to shoulder their burden alone.”

Scott Spiker, FSI Board Member and Chairman of First Command Financial Services, said of FSI’s health offering, “As a leader in the wealth management space, as well as a former healthcare CEO, I can tell you this plan is exactly what our industry has needed for a long time. Advisors should take a serious look at this plan and switch now. I’m urging my advisors to do that and would urge all advisors to do the same.”

The new health insurance plans offer advisors, licensed staff and their families coverage at up to 50% savings compared with the open market. They are national PPO plans that are available in all 50 states, allow covered members to go to virtually any doctor, and comply with all ACA requirements.

Plans are offered at three deductible levels: $2,500, $5,000 and $10,000; these are also the respective plans’ out-of-pocket maximums. Two of the plans are health savings account (HSA)-eligible and premiums are typically tax-deductible.

Financial advisors are eligible for the plans so long as they have a federal tax ID, maintain a current FSI membership and have an active CRD number. They can learn more at FSI’s dedicated website, which includes answers to frequently asked questions as well as online enrollment forms that enable them to see their rates instantly and enroll in under 10 minutes. The health insurance offering is part of FSI’s CoveredAdvisor2.0 program, which also provides advisors with access to long-term disability and term life / AD&D at rates unavailable on the open market. There is also a staff bundled plan of long- and short-term disability and term life. The CoveredAdvisor Group has covered over 10,000 advisors in the last seven years.