Insurance Agent Vs Financial Advisor

[NCAgent828]

Some people don't care. If calling themselves something they are not gets them in the door or builds inferred trust with a prospect, that is all they hoped for.

I have never been impressed with some "financial planners" that are really only equities sales reps that are above helping a couple get adequate life insurance protection, an umbrella liabilty policy or getting the boats & recreational vehicles covered for liability. Without those, all those equities will lost in a lawsuit.

I am equally unimpressed with life insurance only reps that promote themselves as holistic planners with a 20 page financially planning document that always ends with WL as the solution to savings, retirement & college savings. Even to the extent they advise clients to discontinue payments to products they don't offer like 401I or 529 college plans so that it frees up the money to pay 10-20k in WL plans. (note- I am owner & believer in WL, just not a fan of those that find it as solution to everything before they meet the prospect).

Be transparent. If all you sell are stocks & mutual funds, call yourself an investment sales rep. If all you offer is WL, say you are a WL expert.

Exactly! If I walked into a "financial planners" or "financial advisors" office and all they had to offer are sub par life products I would leave and feel seriously taken advantage of and manipulated.

 

[NCAgent828]

The term "financial advisor" is about to be regulated by the SEC as only those who hold a series 65 or 66 license.

When it comes to the proposed SEC advice rule, words matter

However, because I use a consulting process, I NEVER market myself as "a life insurance agent". Why? Because that leads with my product solution rather than the problems I solve or the process I use. That doesn't mean that I'm not proud to be a life insurance agent, but I don't talk about my solutions until I'm ready in the proper time to bring them up.

Clients are not the planner. I am. It's funny as to how much people assume people expect from you. Clients don't have organized thinking about finance, insurance, investments, cash flow, budgeting, economics, etc. That's MY job. I ask questions and help people make educated decisions. I bring order to chaos. (Yes, in that way, I'm the borg.) That's my value.

My title: I use my ChFC designation (Chartered Financial Consultant) as my title. I earned it and I use it. It happens to be a Series 65 exempt designation, but I am not registered to offer advice on securities.

Now, if there's a need that I don't handle, I will refer them to someone who is properly licensed and give them an idea of what to ask about when they see that person. I don't give the advice, but I do guide them in something to ask about and then they can ask for proper advice or go through that professional's process.

But honestly, if they are willing to buy a product that isn't the absolute best for them, are you selling it as an investment when it's not? That's my issue.

 

[DHK]

What I mean by the above comment is, wouldn't you have the wrong type of clients calling and searching for products you don't have?

Oh... you think people CALL YOU? lol.

I'm proactive in my marketing. I define my value proposition myself. No one else can or will do it for me - at least not in a positive way.

Never let your competition (or regulators) define who you are and what you do for people. For regulators, there are always legal and proper ways to redefine your value proposition in a compliant way. Just find it.

For example: in California, in my LTC CE package, it states that you're not supposed to market yourself as a 'financial planner' in order to sell LTC - saying it's a kind of "bait and switch" tactic. Well, I have a ChFC designation. And, in my opinion, LTC is a solution to a problem that is discovered through a planning process, rather than a "product to sell". Try to tell me that I CAN'T or that I'm otherwise NOT QUALIFIED to not promote myself in this way? It ain't gonna fly. I can back up who I am and what I do.

Now, if you can't back it up... don't market yourself in that way.

 

[DHK]

But honestly, if they are willing to buy a product that isn't the absolute best for them, are you selling it as an investment when it's not? That's my issue.

Define "absolute best". Here's my definition: Having the knowledge on how to best utilize a given product that maximizes one's total financial potential.

Define "investment". Here's my definition: An item that generates either capital appreciation, cash flow, and/or tax advantages in the attempt to better one's financial situation.

Life insurance is, by an "English dictionary definition" an investment. It is not necessarily a SECURITY, but it is an investment.

Even TERM life insurance is an investment by that criteria...because it is purchased as a way to better one's situation.

Real estate is an investment by that definition.

So here's my question for you: What do you not yet know about permanent life insurance where you could offer it as a unique asset tool that can increase a policyholder's total financial capacity?

 

[DHK]

Let me shortcut your financial education on the advanced uses of life insurance:

 

[DHK]

Exactly! If I walked into a "financial planners" or "financial advisors" office and all they had to offer are sub par life products I would leave and feel seriously taken advantage of and manipulated.

I can take a "sub par" life product... and make it sing and dance for a client. OR I can do a 1035 into a new product. Just depends on the situation.

 

[NCAgent828]

Define "absolute best". Here's my definition: Having the knowledge on how to best utilize a given product that maximizes one's total financial potential.

Define "investment". Here's my definition: An item that generates either capital appreciation, cash flow, and/or tax advantages in the attempt to better one's financial situation.

Life insurance is, by an "English dictionary definition" an investment. It is not necessarily a SECURITY, but it is an investment.

Even TERM life insurance is an investment by that criteria...because it is purchased as a way to better one's situation.

Real estate is an investment by that definition.

So here's my question for you: What do you not yet know about permanent life insurance where you could offer it as a unique asset tool that can increase a policyholder's total financial capacity?

I personally believe there are very few ways to use whole life and universal life insurance as an investment. My clients money is better placed in money market and IRAs. I believe the biggest beneficiary of a universal or whole life insurance product is the seller of that product or the company that is taking the money every month.

I am certainly open to any sample you have where they universal or a whole life policy earns more and cost the same or less as investing in an IRA or money market accounts?

 

[NCAgent828]

I can take a "sub par" life product... and make it sing and dance for a client. OR I can do a 1035 into a new product. Just depends on the situation.

If you have a good attitude about a problem, it is still a problem. Facts don't care about your feelings.

 

[NCAgent828]

My clients problem is that they need a good investment, I'm not going to sell them a bad investment.

 

[NCAgent828]

I fully expect some negative response from that but I'm hoping that if I'm honestly wrong that someone changes my mind.