- Teacher: Jefferson Keng
Financial Planning and the need for Life Assurance
- Understand the need for financial planning, why customers buy life insurance and how insurance companies provide savings and protection products to meet those needs.
- Understand the role of financial advisors in providing life assurance as a solution to clients’ needs.
- Understand the need for life assurance protection plans and their application to the various life stages.
Protection products and their uses
- Understand the features of the following protection products:
- Term Assurance
- Whole of Life Assurance
- Convertible Term Assurance
- Mortgage Protection Assurance
- Credit Insurance
- Critical Illness
- Income Protection
- Understand how life assurance products are used as savings plan; introduce the different types of savings products (with profits, unit-linked) and how they work.
Types of investments and their suitability
- Know the features of the following savings and investment products:
- deposit savings accounts, government securities, gilts, fixed-interest investments;
- equity: quoted and unquoted, ordinary and preference;
- collective investments: investment trusts, unit trusts, open-ended investment companies (OEICs); investment bonds; corporate bonds; structured products, including protected equity bonds;
- property: direct and indirect, residential and commercial;
- Sharia’a compliant products.
- Understand the relationship between the client’s risk tolerance and the real level of return
- Know the suitability factors in the choice of savings and investment products
Prospecting and creating sales opportunities
- Understand the financial planning requirements and constraints at each of the typical life stages and know how to apply this knowledge to create sales opportunities.
- prospecting and target selection
- approaching target
- awareness creation
- obtaining the interview
- Know how to conduct a fact-finding interview
- active listening
- building trust during fact finding
- getting the correct and relevant information
- Influence of non-verbal communication
Needs analysis and Solution Recommendation
- understand how a customer’s profile is affected by: marital and family status, employment status, regular income and accumulated capital, financial commitments, attitude to risk
- understand the financial planning requirements and constraints of the customer
- describe the main features of the savings products offered by the Bank, its benefits and advantages for the customer
- matching and tailoring the Bank’s products to satisfy the customer’ needs
- know the terms and conditions and how to bring them to the attention of the customer
- be aware of the rating method and how the premium is calculated
Product Recommendation and Objection Handling and Fulfillment
- Know how to prepare a written recommendation for the product as per the Bank’s processes and formats
- Be able to explain the recommendation and why it has been selected
- Be able to explain all the material facts to the customer including the risk and reward balance, policy charges, right of cancellation, complaints policy etc.
- Know the common reasons why customers may raise objections when presented with life assurance proposals: (financial; need; trust; priority; ethical)
- how to handle objections for each type raised by the prospective customer with specific reference to the Bank’s products where applicable
- Know how to communicate with the customer during the objection phase
- Understand the importance of the proposal form and its significance in the contract of insurance
- Know how to explain to the customer the importance of disclosing material facts and the consequences of non-disclosure
- Know the Bank’s organizational steps in fulfilling the sales order
Ethics, conduct and tips for successful selling
- Ethics and business conduct in life assurance sales
- Final words of advice for beginners in life assurance sales.