Be the Best Financial Advisor for Your Clients by Taking the Steps Toward an Insurance License Today

Insurance is essential, especially today as COVID-19 sends the world into crisis. Any long-term investment plan, no matter how brilliant, is subject to rapid disintegration if the client suffers financial and personal setbacks, an accident or even premature death. For this reason, insurance is one of the most important pillars of financial planning.

Although it’s not your job as a financial advisor to sell your client insurance, helping your client understand the appropriate amount of protection is your job. By having a life, accident and health insurance license, you can offer your clients expert protection advice and recommend the most suitable products.

Here are some more details about adding “insurance agent” to your list of qualifications.

Protection stands as an essential pillar of financial advising

Your client can spend countless hours planning their financial future, but none of it will matter if they lose their life. In fact, if something were to happen to your client and they did not have insurance, their loved ones and dependents would likely suffer severe financial hardship.

Insurance makes this tough situation a little more bearable and makes all those financial planning hours worth it. The insurance may even cover the mortgage and future expenses until retirement, depending on the plan. Insurance can give the widow or widower a financial nest egg that might make the hard times just a little easier.

Not offering insurance advice puts clients at a disadvantage

Today, clients are responsible for obtaining a life insurance policy, and insurance information can be overwhelming and intimidating. Your client will most likely have questions about the plan that’s appropriate for them and their financial future. As they ask questions, it’s ideal to offer the right answers, but without a license, you can’t. You’ll need to send your clients to another licensed professional to find the answers they’re looking for.

In addition, your client trusts you to help them make the best financial decisions for their situation, whether they are planning for retirement or saving for their children’s college years. No matter the situation, you will need to strategize their investments while reducing their risks with the right insurance.

By referring your client to another professional for insurance advice, you can increase the risk that they’ll choose an insurance plan that doesn’t quite work with their financial goals. Furthermore, you might send them on a run-around that could be more of a hassle than necessary.

A license is essential for offering protection advice

Yes, you guessed it. You need a license to offer insurance advice. In fact, it’s the law. A license is required to offer this service because A: It helps protect clients against fraud, misrepresentation, discrimination, rebating and other unethical practices. And B: It educates you about the principles, regulations, statutes and practices regarding insurance. With the training and education you receive by becoming a licensed professional, you can be sure you’re offering the best and most accurate advice.

Obtaining a license takes less time than you think

Not only does becoming a licensed insurance advisor take less time than you think, but it can also bring a great ROI. In fact, adding “insurance agent” to your portfolio can potentially double your salary. So, if you’re interested in earning more and offering well-rounded services to your clients, it’s time to get started.

First, you need to complete some prerequisites, which vary from state to state. You can see which requirements you need by clicking here and scrolling to your state. The requirements might include completing a number of hours in one or more specific courses, like general education and ethics and insurance codes.

Then you need to pass a licensing exam, like the Series 65 exam. Fortunately, Securities Training Corporation has the resources you need to prepare, such as practice tests, flashcards and private tutoring. With one of the highest pass rates in the industry, STC can help you pass your exam so you can become a more qualified, versatile financial advisor.

For more information about how to become an insurance agent and specific details about your state’s licensing requirements, you can check out the National Insurance Producer Registry.

Clients benefit when financial advisors are licensed insurance agents

As a financial advisor, you’re in a unique position to help your client with their insurance. You already know about their financial situation, their personal life and their goals. That makes you an ideal candidate to help them make the best insurance decisions. Instead of sending your client to someone who may not know them as well as you do, be the one-stop-shop your client needs and help them plan their financial future with the best protection plan for their situation.

If you’re interested in revamping your portfolio and offering more well-rounded services for your clients, let’s get you ready to pass your securities exam. Contact Securities Training Corporation today to learn more. We look forward to hearing from you!

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