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Insurance Agent, Advisor, Or Insurance-Stockbroker

 


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When it gets to a client considering serious planning for their financial future, whom do they use? Can it be handled by a typical life and annuity sales agent? Does it require the skill of someone who calls himself or herself a financial advisor? Some think that a stockbroker with an insurance agent can best service them. The answer is. . . it depends.  

If you are not careful and get involved with, risky investments so could end up losing everything. Many people with moderate to high investment net worth recently took a significant loss with the recent financial crisis. Lots will never recover. Others over the past decade have played it too safe and have seen the price the paid for death and living financial security not keep pace.  

Examine each of the downfalls and advantages of the three types of sales agents you are betting your future on. No crystal ball prediction of the best route can be However knowledge can lead you in the direction of what insurance and financial products fit best with each of the different types of sales agents.

Insurance Sales Agent    Here it is absolutely critical that you only consider seasoned agents with at least four years of experience.  The better insurance sales agents will have an income exceeding $65,000. Their product specialties should be life insurance. Not just term life, but cash value policies like universal life. In addition, the agent should have a history of annuities and 401K plans. Remember here that this agent is being paid on commissions. The first year commissions on life insurance are typically very high, and the second year renewals are in proportion very small.  

Watch out for “rollers".  An insurance roller is an insurance sales agent who the first year sells you a fantastic life insurance policy. Just before the second year, you receive a call and make an appointment for this agent to review your coverage. The agent then sells you almost the same policy at nearly the same price but with a different insurance company. Why? This agent then gets the say 70% first year commission again, instead of the 15% renewal. Making adjustments are reasonable, where as full scale changes often are not.

Insurance Financial Advisor   This sales agent should have a minimum of 3 years experience, and an insurance designation. The designation often could be CLU, CHfC, FIC, CFP, RFP or many more related to insurance and financial products. The advisor should also have a variable contract license. This would allow the agent to sell more advanced investment orientated life insurance, as well as Mutual Fund products. This style of insurance representative should have an income exceeding $75,000. The interview process show take one meeting and the actual recommendations should be computer generated and be presented at a future meeting.

Watch out for “churners"   A financial churner is one who is frequently calling you every few months to review your coverage. This is always a hot new variable annuity, or mutual fund that is superior to the one previously purchased. Before you switch watch for the load fees. This is money deducted from the total amount you are investing. Of this, often a decent portion is going to your insurance and financial advisor.

Life Insurance/Stockbroker   This is a stockbroker with the ability to sell you stocks, bonds, variable annuity and life products, regular life policies, and mutual funds. The average two years of experience stockbroker is making over $110,000 yearly. This does not mean the stockbroker is any better than the other two types of sales agents. Here your are heavily paying for advice. Some charge you per hour. Is their time worth to you a goldmine or a disaster? Moreover you rely on them if investing in stocks on when to sell and buy.

Watch out for “unusual investments" The stockbroker can offer you an array of non-traditional products that could make you rich or a pauper. Check out any too good to be true return rate projections before getting involved. Be careful with life insurance choices as the selection of companies is made by a profitable side-arrangement with only certain life insurance companies. These companies may or might not be a good choice.  

Your last alternative is a life insurance agent that is associated with an independent broker dealer. This agent is almost a full combination of all the three other types. The advantage is independence. . . more choice, more companies, and more options.

Now you determine which choice is best. Either way, experience in more financial orientated life insurance and planning adventures is a requirement over the inexperience of a rookie.  The choice is yours.

Well published author, Don Yerke likes to concentrate on what you don't know or what no one else dares to print. Tell it like it is. The website address is http://www.agentsinsurancemarketing.com Get your FREE 160 page Ebook on self confidence (details on 2nd page).

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