Plenty of financial advisors sell life insurance to their clients.
For some observers, this represents a culture clash, if not an unholy alliance. Advisors, at least in their storybook image, are objective mathematicians with hearts of gold working solely for their clients’ good. Life-insurance sellers, though – why, the whiff of snake oil follows them everywhere.
Stereotypes are funny things – good for a laugh and not much else. In fact, there are excellent reasons for an advisor to nail up the shingle of a life insurance salesperson. Let’s examine why they do it.
Everyone must have life insurance. The myriad policy options make the product offerings complex, with the silver lining that they can be tailored to intimately specific client needs. This puts the advisor in an excellent position to assist customers by constructing a life policy structure that suits their exact financial goals and estimated future needs.
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It’s a touchy subject: a client visits for financial advice and suddenly their advisor wants to talk about sickness and death. Some advisors press ahead out of a sense of fiduciary duty. A surprisingly large number of Americans have not sufficiently provided for healthcare in retirement or the cost of dying, which can be high. It’s a tough brief, but many advisors feel they aren’t doing their jobs if they don’t broach the topic.
Others find more pedestrian, but equally understandable motivation in the happy matter of profit. Commissions on life insurance policies are appealingly high. It isn’t hard to meet the qualifications for listing yourself as an insurance agent, but it is advisable, given the industry’s complexity, to earn higher credentials. Clients will appreciate this firmer grounding and you’ll be better prepared to meet their myriad needs.
For more information, please read:
Why Financial Advisors Sell Life Insurance | Investopedia