If you’re looking to expand your opportunities as a financial advisor and provide your clients with the best services possible, you should consider obtaining a property and casualty insurance license. This step can help take your career to the next level and will allow you to take better care of your clients and their financial plans.
When you acquire a property and casualty insurance license, it’s an indication of your knowledge of both the basics and regulations related to insurance policies. The license will allow you to sell insurance (such as home, car, and renter’s) and help your clients obtain the best and smartest coverage possible.
Below are some of the reasons why having a property and casualty insurance license is a good idea.
Protection Must Always Be Considered in a Financial Plan
A single casualty event can wipe out an investment portfolio, which is why it’s essential to make protection a top priority. With the proper coverage, clients are better able to recover from a loss and remain financially whole following the event. Typically, a client will continually pay a small fee to an insurance company in exchange for the replacement of (or assistance in replacing) expensive personal items (e.g., a car or house) following an accident.
As a property and casualty agent, you’ll be qualified to assist clients in understanding their property and casualty insurance needs and also help them decide which type of coverage is their best option.
Property and Casualty Insurance Mistakes Cost Big — Here’s How Agents Can Help
By failing to have the proper coverage, your clients put themselves at risk of needing to invest a large amount of money into recovering from an unfortunate event that could likely have been avoided.
For example, let’s assume your client owns her house outright, continually pays her property taxes, but doesn’t have insurance coverage. If anything happened to her house, she’d be required to come up with the funds, which could possibly exhaust her savings for retirement. Alternatively, if her house catches fire, but she has the proper coverage, the insurance company will replace (or help replace) the house. Without coverage, the client will be forced to personally absorb the costs incurred in replacing her home and everything in it.
You can help your clients avoid making big insurance mistakes by knowing the ins and outs of insurance, having an insurance license, and offering the best insurance advice possible for their situation. By knowing the value of your client’s house, the property they have, the car they drive, the assets they hold, and everything about their financial situation and goals, you’re sure to help them make the right move when choosing insurance.
Umbrella Insurance Saves Wealth
Umbrella insurance is extra liability coverage that goes beyond the typical homeowner, car, and renter’s insurance plans. This type of policy gives clients another layer of security and covers them when other people are involved, such as if they’ve damaged another person’s property or caused injuries in a car accident. The plan also protects against any vandalism, invasion of privacy, slander, or libel. This coverage is a great option if your client has a high income, has many expensive assets, and is likely to be sued when another person is affected.
If your client is ever sued, the umbrella insurance will cover (or help cover) the associated costs and prevent her from losing her property or going bankrupt. Ultimately, umbrella insurance saves your client’s wealth.
Clients Need Insurance Advice From a Trusted Source — Their Agent
In many cases, since clients are already trusting you with their investments, they may also be comfortable trusting you with their insurance. If you’re already a financial advisor, you know all about your clients’ financial, family, and home situations; therefore, obtaining a license to offer insurance advice will allow you to provide them with the best comprehensive coverage possible. Rather than sending them to an insurance agent who will need to take the time to learn all of the details you already know, being able to offer insurance will help save clients from taking that extra step. Since you’ve likely spent a great deal of time building your clients’ financial plans, it seems like a good idea to be able to protect them too.
Protection Advice Provides Clients With the No-Pressure Insurance Advice They Need
When talking to general insurance agents, up-selling is a typical worry. The concerns include whether these agents are really recommending the right insurance plan to their clients, or whether they’re just trying to sell the plan that will make them the most money. Actually, these thoughts may never cross clients’ minds if you (their financial advisor) are the person who’s offering them insurance advice. The reasoning is that they trust you and are less likely to feel pressured to purchase a plan they don’t actually need. Since you know exactly what they need, having an insurance license helps you provide them with protection advice without them feeling pressured into making the wrong decision.
Remember, you need to have a specific license to provide insurance advice. Get started on your licensing and expand your opportunities as a financial advisor by contacting Securities Training Corporation. STC offers the finest study materials to help you pass your licensing exam and attain your property and casualty insurance license.