Pete King

Starting Off as a Financial Advisor

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Being a financial advisor is a feasible way of earning money and learning how to handle it. Most companies hiring financial advisors offer training and financial literacy programs. These programs are not only strategic for your future career as a financial advisor but can also be helpful for personal finance.

What is a financial advisor?

Financial advisors work with an insurance company in both sales and assessment. They are expected to have a good level of literacy when it comes to making the best financial decision for their clients. This is why training and literacy programs are available from the get-go.

Often, financial advisors are in charge of making trades on the market that would be beneficial for their clients. They help their clients handle savings and budget better, as well as maximize tax strategies. They also draw up financial plans, which may include investments and insurance.

When it comes to insurance and investments, different clients have different goals. Some want to retire early, so they want investments that bring them closer to that goal. Others, however, focus on protecting their families, even after they pass away, so they may prefer life insurance or final expense insurance.

What kinds of insurance are out there?

Life insurance or personal insurance is pretty straightforward; it means the company will pay some amount at the time of expiry or time of death. It protects the policyholder’s family as well.

Another example is a general insurance, wherein property and liability would fall under. If a car or commercial establishment incurs damage from a specified risk, monetary compensation is provided. Liability insurance specifies, however, that whoever is proven to have caused this damage would be liable in paying for the damages.

General insurance could also cover certain nuances like marine insurance for cargo and freight and fire insurance for fire risks and potential damage.

How do you pick insurance products to sell?

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When picking insurance products, you should look at your target demographic. For instance, if you want to market to seniors and are comfortable talking to them, you can consider selling final expense insurance. Want to target younger demographics, instead? You can focus on selling health or variable universal life (VUL) insurance to help young adults gain financial freedom early and enjoy their retirement years.

There are many more products to consider and specialize further later on. If you want to go into humanitarian work, you may want to go into social insurance that protects the less fortunate sectors of society. If you’re comfortable with working alongside employers, you might want to focus on selling guarantee insurance that covers labor deals between employers and employees.

Insurance is so nuanced, and there are infinitely many opportunities within it if you decide to pursue being a financial advisor. Being one is a wonderful way of using your financial knowledge not only for your gain but also for your clients. It becomes a much more feasible way of living because it often pays in commissions as well, so you get as much as you put into it as long as you play your cards right.

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