Can a life insurance agent be called a financial advisor?

Stock brokers and insurance agents, especially, call themselves “financial advisors” all the time. In fact, stock brokers and insurance agents do not work primarily for their clients but, rather, for their employers. Insurance agents have a fiduciary obligation to the insurance company, not the customer.

What type of agent is a life insurance agent?

Life insurance agents are licensed professionals who sell life insurance. They will work for an insurance company and sell policies “carried” by that insurance company, or can work more independently and are able to sell life insurance from a range of companies.

Who can be called a financial advisor?

According to the Financial Industry Regulatory Authority (FINRA), almost anyone can claim to be a financial planner and might come from many different backgrounds. 1 Financial planners might be brokers or investment advisors, insurance agents, practicing accountants, or individuals with no financial credentials.

Can insurance agents give financial advice?

In the example of insurance agents also acting as financial advisors, a nice combination is the license to sell insurance as well as a certificate as a financial advisor. The certifications include Certified Financial Planner (CFP) or Chartered Financial Consultant (ChFC).

What is the difference between a life insurance agent and a life insurance broker?

The primary difference between an insurance broker and an insurance agent is who each represents. While a broker represents the insurance buyer, an agent represents one or more insurance companies.

Is an accountant the same as a financial advisor?

Accountants do auditing work, financial forecasting, and putting together financial statements, while financial planners help individuals with wealth management and retirement planning. Accountants are usually detail-oriented and good with numbers, while financial planners are better at sales and networking.

How do you call yourself a financial advisor?

Regarding “advisor”, which is completely ubiquitous, the new rules are pretty clear: you cannot call yourself an “advisor” or “adviser” unless you are registered as an investment advisor.

How do financial advisors get paid on life insurance?

A financial advisor who sells life insurance can earn a large initial commission based on the first year’s premium and 3\% to 5\% annual commissions for as long as the policy remains in effect.