"It’s something I think, from day one, I should have been signed up for. It’s necessary to have in place, and it’s not an expensive program."


- Trace Dennis, Principal, Jal Dennis Group on the Assurance Plan


You may think you’re covered in the event of an unplanned exit, and that your family and clients are protected. Isn’t that what life insurance is for? Unfortunately, life insurance and even estate plans do not protect an operating business, and RE-F647s don’t offer the complete solution – leaving your practice, profits, equity, family, and clients all at risk.

The Assurance Plan – an industry-first protection plan – offers full coverage and ensures your family, clients, and business are safe in the event of your unplanned exit.

See how they all stack up:

Product Specs Assurance Plan Formal Succession Plan Assignment of Accounts &
Trail Commissions (RE-F647)
Description A cost-effective solution for purchasing coverage that can safeguard the value of an advisor’s business. In the event of your unplanned exit from the industry, you or your beneficiaries will receive a guaranteed commission-free payout, as well as any additional proceeds above the minimum following the potential sales of your business. A formal agreement, usually bound by legal contract, that identifies incoming and future owners of a business in the event of existing owner’s departure, retirement, or death. This plan generally provides specific details on how and when a transition of ownership will be executed. A form used for business continuity purposes in the event of an advisor’s death, disability, or incapacity, identifying the transfer of your accounts to another advisor. No transition assistance, guaranteed payout, or payment plan is provided. This form is to be used by hybrid advisors for brokerage and direct business only.
Price $100 monthly/ 3-year contract
$125 monthly / 1-year contract
Variable. May include legal fees, valuation services, and 3rd party charges. No initial cost.
Enrollment Complexity E-Sign contract available. Dedicated team available for service support. Complex process involving legal and 3rd parties. Form available in ClientWorks. Advisor must independently identify a successor and negotiate terms.
Customization Advisor can customize beneficiary and Right of First Refusal. Advisor can customize terms, beneficiary, payment structure, and plan activation. Advisor can customize terms and percentage of revenue share.
Successor Flexibility No Successor required, ability to list up to (4) LPL licensed advisor(s) or RIA. Named successor (LPL licensed advisor) required. Named successor (LPL licensed advisor) required.
Tax Treatment* (under current tax law) Proceeds of sale are taxed as long-term capital gains. Taxed as long-term capital gains. Proceeds taxed as ordinary income.
Payout Terms Immediate (30-45 days) Flexible Maximum 5 years
LPL Integration Support ✔ Some support available^ ✔ Some support available^
Outstanding Liability Coverage N/A N/A
LPL-Backed Payout (Guaranteed) 1.5x recurring revenue is paid directly to beneficiary, plus potential for additional upside when the book is sold at market value. N/A N/A
Execution Timeframe ~ 30-45 days N/A N/A
Annual Valuation of Your Business N/A N/A
Buyer Matchmaking If a successor is not identified, LPL utilizes our LPL M&A Solutions Buyer Network to locate a buyer. N/A N/A


*This summary is not inclusive of tax law. Please consult your tax professional for comprehensive guidance.
^LPL integration support is provided pending the agreement is compliant with FINRA and LPL Policies.

To learn more about the Assurance Plan, schedule a consultation.


The views and opinions expressed by the LPL Financial Advisor(s) are as of the date of the recording. These views may not be representative of the views of other Financial Advisors and are not indicative of future performance or success. Neither LPL Financial nor the LPL Financial Advisor can be held responsible for any direct or incidental loss incurred by applying any of the information offered. Jal Dennis Group and LPL Financial are separate entities.