Insurance Advisor

Definition:

Insurance advisor is a professional who provides expert advice to the customers for investment in various insurance schemes.

Description:

An insurance advisor charges a stipulated fee from the customers for the services offered by them. Insurance advisor is required to have a licence for the practice of his profession. An insurance advisor is also known as an insurance consultant.

The insurance advisor performs several other functions like sales, intermediation, compliance management, consulting and advisory services.

Insurance advisors are required to have:

  • A bachelor’s degree in finance and a licence issued by the state board.
  • The professional must have CFP certification with strong verbal and written communication skills.
  • Training in the latest products and benefits. Attend the seminars of the product launch.

Insurance advisor is responsible to meet the clients, offer financial guidance and advice, financial analysis, create and explain customised plans, accessing clients financial portfolios, and analysing clients’ risk.

Example:

Abha purchased two insurance policies one was term life insurance and second was fire insurance for her factory building.

Abha’s Rs.1crore term plan was to keep her family financially protected after she died. The policy term was 25 years. If anything happened to Abha during this time, the term life insurance policy will compensate her family with Rs.1 crore.

Mehak was an insurance advisor who specialised in life insurance. She opened her insurance consultancy and provided guidance to the proposers to buy the policies according to their requirements.

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