Why Insurance Advisor Is Important for Individual?

People seek security. A sense of security may be the next basic goal after food, clothing, and Shelter. An individual with economic security is fairly certain that he can satisfy his needs (food, shelter, medical care, and so on) in the present and in the future. Economic risk (which we will refer to simply as risk) is the possibility of losing economic security. Most economic risk derives from variation from the expected outcome. Economic risk is managed through insurance industry. Under a formal insurance arrangement, each insurance policy purchaser or policyholder still implicitly pools his risk with all other policyholders. However, it is no longer necessary for any individual policyholder to know or have any direct connection with any other policyholder. How does Insurance Works? Insurance is a way of reducing your potential financial loss or hardship. Insurance exists because risk exists. There is a possibility that anyone could become a victim of fire, theft, auto accidents, other injury accidents, illness, severe weather, lawsuits and more. We are subject to risk at home, at work, in our cars, traveling, in the hospital or anywhere at any time. When you buy a policy you make regular payments, known as premiums, to the insurer. If you make a claim your insurer will pay out for the loss that is covered under the policy. If you dont make a claim, you wont get your money back; instead it is pooled with the premiums of other policyholders who have taken out insurance with the same insurance company. If you make a claim the money comes from the pool of policyholders premiums. To decide on the type of insurance you need think about: why you need cover what you want to include in your cover how much you can afford how long you might need cover for whether you want cover for yourself and / or for loved ones Role of Insurance Advisor An insurance advisor plays a very vital role in your financial planning and helps you to purchase the insurance policy. Advisors make connection between the customers and company. Your main function would be to solicit life insurance business on behalf of the company. Insurance Advisor will help clients find insurance solutions that meet their needs and take a lead in building the companys sales. Thus as an advisor you would be required to play the unique role, whereby, you would be trusted by the customer as well as Insurer. Understand your insurance protection and investment needs Identify and recommend solutions that best fit clients requirements Offer customer a complete product portfolio Complete the formalities necessary to get the policy issued Keep in touch with customers to ensure that their service requests towards policies are managed properly. Facilitate settlement of claims whether to invest in Life Insurance/health Insurance/general insurance, basically all calculation part has been helped by advisors