How Insurance Advisors Help Families and Business Owners

Families and business owners need to rely on insurance advisors for a number of reasons. Valuable advice on insurance could help in saving several extra dollars, which could again help with family or business planning. Additionally, it is necessary for providing financial security in case of an untimely death or other unforeseen problems. Here are some of the ways in which you, as an insurance advisor, could help families and business owners:

• You could help your clients in finding the right policy where they can get tax-free growth in the plan. For instance, there is a chance of them enjoying an extensive tax advantage by investing their reserve income in permanent life insurance. As an advisor, you could help them understand all the possible growth sectors in the available policies.
  
  
• You could help them in finding the right policy that includes the provision of protection for their estate. This would include prevention from shrinkage in the case of inflation and/or taxation.
  
  
• You could help them look at all the opportunities for planned giving, so they can make an informed decision. As an insurance advisor, you would be able to help your charitable clients in giving substantially greater gifts for charity.
  
  
• Insurance advisors help business owners in finding a policy that includes the provision of capital that is tax free. This capital can then be used by your clients to fund liabilities or even pay for the replacement costs in case they lose key employees. It can also be used in ongoing expenses for carrying out their operations.
  
  
• You could guide them in finding a policy that includes the provision of necessary funding, so they can make important business transactions. This makes the service of an insurance advisor especially important for small and start-up businesses as well.

Different insurance policies offer different benefits, options, and features. As a qualified and knowledgeable insurance advisor, you could point families and business owners toward the right direction. Your valuable advice and opinion could ensure them financial stability in the future.

Useful Tips on Making an RESP Withdrawal

For years you have been saving up for your child’s education and when it’s finally time to use the money, how do you proceed? Before you proceed with the withdrawal, make sure you contact your financial institution for details. The rules might be a bit more restrictive in the case of scholarship or group RESPs. Here are some tips you could make use of when making an RESP withdrawal:

• Proof – When it comes to withdrawing funds from your RESP account, the proof of enrollment is more than enough to justify your payment request. However, make sure you get the specific criteria required by your financial institution. You can get a Verification of Enrolment form filled out by the educational institution. 

• Limit your withdrawal per beneficiary – In the case of family RESPs, make sure you limit the withdrawal per beneficiary to $7,200. This is the lifetime grant limit set for each beneficiary. Of course, you can set the amount yourself and it would be possible to withdraw more than this amount for one beneficiary.
  
  In this case, you will need to return the grants to the government. You can get a detailed account of the grant money given to each beneficiary from your financial institution. This will help you prevent withdrawal of inappropriate amounts.

• Go for more – Making withdrawals from your RESP account is not as simple as making withdrawals from your checking account. That’s why you might want to consider withdrawing more at once rather than small amounts. It’s not like you have to give all the money to your child as soon as making your withdrawal. You can keep it safe and pay them out on a regular basis.

• Withdraw accumulated income – It is highly recommended that you withdraw the accumulated income in your RESP account as Educational Assistance Payment or EAP. There are some cases where the accumulated amount is withdrawn as Accumulated Income Payment or AIP because the student drops out of school.
  
  In such instances, the grants have to be returned to the government. In addition, the withdrawn amount is considered taxable income and you will need to pay 20% as penalty tax as well. 

Benefits of Becoming an Insurance Advisor

Have you ever thought about becoming an advisor in the insurance market? Not everyone can have a promising career in the field of insurance, let alone in advising others on which insurance would benefit them the most. It takes determination, honesty, and wits to succeed in the business.

Take a look at the following responsibilities you will have as an insurance advisor and find out if you will be able to fulfill them:

• As an insurance advisor, your job revolves around providing your clients with the best insurance solutions.
  
  
• You have the responsibility of pointing your clients towards policies and plans that are most suited for their needs.
  
  
• It is your job to empower your clients and their families to attain financial security by helping them take proper investment routes.
  
  
• You have the responsibility of educating your clients about every little detail of all the investment options available for them. 

If you can indeed fulfill the above responsibilities, the following are some of the benefits you can get as an insurance advisor:

• A career as an insurance advisor gives you a lucrative earning potential, while at the same time building you up for career growth. Every policy you sell helps you earn an impressive commission, meaning that the more you sell the more you’ll earn. You will be able to develop your skills and knowledge to establish a successful and stable career.
  
  
• By starting out as an insurance solution provider or an insurance advisor, you can eventually develop enough experience and skills to become a specialist in the field. This makes for a wider scope in career growth to ensure your future success and financial stability.
  
  
• To become successful as an insurance adviser, you do not need a start-up capital. All you need to invest is your time and effort and your scope for growth and financial success will continue to grow the longer you stay in the business.

The job of an insurance advisor is unlike anything. It requires plenty of will and hard-work. In addition, the job is for someone who is always ready to help their clients grow.

Tips on Being More Ethical in the Insurance Industry

So you’ve decided to build a career in the field of insurance service. Before you begin, it’s important for you to remember that adhering to ethical guidelines comes before making a profit in the business. When you’re working in the insurance industry, you must put the interests of your clients before your own. Here are a few tips that can help you follow the ethical guidelines involved in insurance service:

1. Be transparent with your rates – One of the most important things an investor needs to know is how much they are being charged. Before getting into an agreement of any kind with existing or potential clients, make sure you give them a thorough break-up of your rates.
   
   Give them a detailed account of the insurance costs as well as the fees you charge (if there are any) for your service. This could help in preventing misunderstandings that could arise from incomplete information.
   
   
2. Be transparent with policies – Other important information that you must provide your clients includes the statement of their investment policies. Instead of using industry-related jargon, make sure you explain the details in a language that they can understand.
   
   Allow your clients to go through the statement thoroughly so you can help them clear any doubts they might have. Avoid rushing them when they’re studying the details, as this might prevent them from clearly understanding the policy they’re taking.
   
   
3. Inform them about your disclosures – As an ethical investment advisor, you are responsible for providing the details of your disclosures. By being transparent about what’s written in fine print, it is your clients that will benefit from your transparency.
   
   In turn, you not only get happy clients but also avoid any issues that might arise from misunderstandings. If there are any complicated legal matters, it would serve your client to learn about them before getting into any kind of agreement.

All in all, the key to being more ethical in the insurance industry is clear communication. As long as you give clear and detailed explanation of every important detail to your investors, you will be putting their interest first.