Investments

Steps to Becoming a Financial Advisor -insurance agent in the Philippines

I decided to write about how to become a financial advisor/consultant or insurance agent because I just finished the orientation. A financial advisor has no salary. It is your business, where you try to solve the client’s problems. Therefore, you need to work for your commission to improve.

Are you a financial advisor material?

Here is a general list of requirements, so that you already have an idea of what you need.

Documents

  • Diploma or TOR
  • Your CV
  • TIN ID or ITR
  • SSS ID or form
  • NBI CLearance
  • Insurance Training Certificate
  • Exam Results
  • Licensing Fee

Personality/Skills

  • Willingness to serve
  • Ability to lead or work in a team
  • Highly motivated to achieve big dreams

Know Your Reason: Why do you want to become a financial advisor?

Professional Reasons

I planned to become a financial advisor so that I can also be insured. As a freelancer or an entrepreneur, we need to get our own insurance. However, most insurance companies provide insurance benefits to licensed advisors. Since there are many products in the market, I wanted to learn what exactly I am getting into and what are the best options for me.

Another reason, a minor one, is that I want to have a website about personal development. Being insured is a part of it. And since I am already doing the research, I could increase my credibility as a financial advisor.

Lastly, it is an extra source of income without a full-time commitment. I am looking for an additional income source but I do not want to give up my full-time job, my blog, and my online store. Being a part-time financial advisor perfectly fits my professional plans and goals. I consider it as a side-hustle.

Personal Reasons

Experience is the best teacher. Being a child of uninsured parents has taught me more about financial education and the importance of insurance than any material available (online or offline). My maternal mother died in her mid-forties because of TB. She had no savings nor insurance. My step-mother died of duodenal cancer while still in her 50s. She had no savings nor insurance. My dad is well but his business and properties are always on the line because he could not pay the mortgage on time and he is already almost 70. He has no savings nor insurance. (He had term insurance for his mortgage but it expired when he turned 60). Experiencing their hardships taught me the importance of savings, having different sources of income, being debt-free, and getting insurance.

Currently, I only have short-term insurance.

Research: What do you need to know to be a financial advisor?

Before embarking on any journey, you have to know your destination and what you need during the journey. You also need to know how to read the map or what are the landmarks. As a financial advisor, you need to decide which company you will apply for, what resources you will need, and what products you will sell. Yes. You will be selling. Being a financial advisor means that majority of your earnings are commission-based.

The Company: Your Sponsor

Which insurance company are you going to join? In my case, I am joining a stable company that offers the products or policies that I need. Further, I believe that I can sell a product more easily if I have purchased or experienced it myself.

Resources: Your investment

Do you have what it takes? Clearly, if you are too busy to attend the training or do not have enough money to spare, becoming a financial advisor may not be fit for you.

Apart from my motivation, I have spare time and resources to pursue this profession. Before deciding to become a financial advisor, I already have at least 4 prospective clients (people I know who do not have insurance). Also, I already have social media accounts and a website where I can leverage information about insurance products.

The Product or Policy

I will not discuss the details here because I hope you will conduct your own research.

The following are the Basic Types of Insurance:

  • Health Insurance
  • Life Insurance
  • Property Insurance
  • Auto Insurance
  • Travel Insurance

Get a License: How do you get certified as a Financial Advisor

Becoming a financial advisor is well regulated in the Philippines Insurance Commission. You need to take two license examinations, one is for a traditional insurance license and the other for VUL license or variable universal life insurance.

Traditional vs VUL Insurance License

Traditional Insurance License allows you to offer classic insurance policies like permanent and term insurances. These have benefits that are defined exactly before the payment of premiums. These are the best policies for people with a conservative risk appetite.

The VUL Insurance license will allow you to offer products with investment components like savings that are invested by the insurance company to generate potentially higher returns. However, your premium will be exposed to market volatility. These are the best policies for people with moderate to high-risk appetite.

Attend Career Orientation with the Insurance Company

You need to get an invitation from a recruitment manager/officer to attend a career orientation. Often this is online. Usually, it lasts an hour or two. You will receive a briefing about what being a financial advisor is all about and what are the perks and benefits that the Insurance Company offers.

Interviews

There will be a screening interview and you might need to answer a personality test to verify if you have the right personality for the industry. The interviews will also allow you to get to know your work and other senior financial advisors.

Receive the Training

There are different training sessions for Tradition Insurance and VUL Insurance. Be sure to attend both. Nowadays, most training sessions are done online.

Taking the Insurance Commission Examination

After the training courses, you can take the examination at the Insurance Commission. In 2022, the exam fee is 1010 and the license fee is 1895. Your license is valid for 3 years. You need to submit the Exam results as a requirement.

Submit the Requirements: Do you have all the requirements to be a Financial Advisor?

I already listed the main requirements in the first part (above). Now, you need to submit everything to your sponsor/company.

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