“Financial planning is not
just about selecting investments or offering good advice;
 it is more about providing long-term guidance
 that you can trust. "


The Systematic Approach to Financial Planning

One of the major challenges for many new recruits in the insurance business is to close deals successfully. In most cases, they failed because the financial plans were not prepared in accordance to their clients’ needs. Here are 5 tips onhow you can tailor the financial plan to each client’s unique requirements:

Your Client’s Goals– My most important advice to all insurance entrepreneurs is to understand what your client wants to achieve through the business deal. This can only be done by asking the right questions. Start with the basics. Find out why they want to purchase insurance. Is it for investment or protection or both? Once their objective is clear, you can start to tailor the solution to their specific needs.

Analyse Risk Profile– Each individual’s attitude towards risk differs at various stages of their lives. For example, a bachelor may have a higher risk tolerance compared to a family man. Make recommendations for your client’s financial plan based on their risk profile. Those with higher risk tolerance may be more open to putting a larger amount of money into the investment component. The mentors at Zurich Life Insurance Malaysia are in the best position and most willing to advise new recruits in this area.

Set A Budget– As an insurance entrepreneur, you need to know your client’s financial situation in order to propose an appropriate solution. You need to get down to the details such as monthly income,expenditure and savings. Based on this assessment, you will then ask your client to commit to a budget range for investing in insurance. Then, you can start to develop the financial plan based on this budget range.

Provide Options– Your client may not have a clear picture of what his insurance investment plan will look like. Draw up at least two or more financial plans based on their needs, risk profile and budget by adjusting the ratio percentages of their premium for investment/savings. They can then review the different options and make better decisions based on their comfort level.

Review and Revise– Always review the financial plan draft with your client as many times as necessary. Try to probe gently until all their concerns are satisfied. Being a patient listener and changing the plan according to your clients’ requests is the best way to show them you care. Such an approach will also help build their trust in you. Once they are comfortable with the plan, they will most likely close the deal with you.

Remember, investing in insurance is a major and long-term commitment for most clients. Much care is needed to ensure that the financial plan meets their specific needs. You can achieve this by listening, adopting their risk profile and budget, giving them multiple scenarios and revising the plan to their satisfaction. Financial planning is not just about selecting sound investments or offering good advice; it is more about providing long-term guidance that you can trust.At Zurich, we are committed to help others through our expert guidance. You can be part of our vision too.