What's a good AI prompt for explaining a complex financial product to a client in plain language

The Prompt

Explain [financial product — e.g., a variable annuity, an ETF, a HELOC] to a client with no finance background.

Cover: what it is in one sentence, how it actually works, the real risks (not just the benefits), and who it tends to be a good or bad fit for.
Avoid jargon — define any term you can't avoid ("liquidity," "expense ratio," etc.) in plain words the first time you use it.

Why This Prompt Works

Suitability and disclosure obligations in financial services mean a client genuinely needs to understand risk, not just benefit, before a recommendation is appropriate — explicitly asking the model to state real risks alongside benefits, and to fit-check (“who this is good or bad for”), produces an explanation that actually supports informed consent rather than just a sales pitch.

How to Customize It

Supply the product’s actual current terms, fees, and risk factors — generic descriptions of a product category can be outdated or not match your firm’s specific offering. If the client has already expressed a specific goal or concern, tie the explanation back to it directly rather than delivering a generic overview they have to translate into their own situation themselves.

Common Mistakes to Avoid

Don’t let the explanation become benefits-only — a plain-language explanation that omits real risk isn’t simplification, it’s a disclosure gap, and the advisor of record remains responsible for what the client is told. Also avoid over-simplifying to the point of inaccuracy; plain language should make the real mechanics easier to follow, not replace them with something technically wrong.

Bottom Line

A good product-explanation prompt treats real risk disclosure as non-negotiable alongside plain-language benefit explanation — reviewed by the advisor before it reaches a client.