Why Do Life Insurance Agents Call Themselves Financial Advisors?
I’ve always wondered why life insurance agents at companies like AXA, Equitable, MassMutual, and Northwestern Mutual refer to themselves as “financial advisors.” What types of investments do they have access to, and how do they manage investment portfolios?
Do they mainly focus on selling life insurance plans and earn their income from that, while also managing investments in a more generic or target date sleeve approach?
One response
Life insurance agents at companies like AXA, Equitable, MassMutual, and Northwestern Mutual often refer to themselves as “financial advisors” because they provide a range of financial services to their clients, beyond just selling life insurance policies. In addition to life insurance, they may offer services related to retirement planning, wealth management, and investment advising. By referring to themselves as financial advisors, they are able to convey that they can assist clients with a variety of financial needs.
These financial advisors typically have access to a variety of investment options, including mutual funds, stocks, bonds, and exchange-traded funds (ETFs). They may also have access to certain proprietary products offered by their respective companies. The specific investments they recommend will depend on the individual client’s financial goals, risk tolerance, and time horizon.
When managing investment portfolios, financial advisors will typically work with their clients to develop a personalized investment strategy. This may involve assessing the client’s financial situation, goals, and risk tolerance, and then recommending a portfolio allocation that aligns with these factors. They will then monitor the portfolio on an ongoing basis, making adjustments as needed to ensure that it remains in line with the client’s objectives.
While selling life insurance is certainly a key part of their business, financial advisors at these companies do not solely make money off of life insurance plans. They may earn commissions or fees for selling life insurance, as well as for managing investment portfolios. The specific fee structure will vary depending on the company and the services provided. It’s important for clients to understand how their financial advisor is compensated and to ensure that the advisor is acting in their best interests.