Chapter 9

  1. Benefit illustration given to the customers quantifies the amt. by which investment return is reduced and this reduction reflects the impact of CHARGES.
  2. If a young couple wanted to invest for their daughter whose income is likely to increase in the future then they should go for a Flexible Plan.
  3. If a couple has young son then they might be looking for Child Education Policy.
  4. If an agent is to explain to his customer the guaranteed benefits of the product then he has to use the Benefit Illustration document.
  5. If a person has dependent parents then his preference would be to Get Life Insurance.
  6. Benefit Illustration Document distinguishes between Guaranteed and Non Guaranteed benefits.
  7. An agent should do fact finding in order to understand the mental State of client in respect to his investments in saving products.
  8. While recommending solution to the client the advisor should establish the link between Client’s needs and Product’s features.
  9. An Agent should suggest a plan based on needs of the client.
  10. Transfer of Risk is the Best option to manage the risk.
  11. If a person is 25 years of age, having Govt. job and a bachelor, he can be given a long term plan as per his goals.
  12. If the client is seeking solution for health care and inheritance planning then most probably he is at the RETIREMENT STAGE.
  13. Fact Finding Process helps to IDENTIFY CLIENT’S NEEDS.
  14. While doing a fact finding session an agent should go by the process of IDENTIFYING, QUANTIFY AND PRIORITIZE CUSTOMER’S NEEDS.
  15. If an agent wants to do a thorough Fact Finding for his client who is a businessman then CLIENT’S PROFITS AND WITHDRAWLS FROM THE BUSINESS would be helpful to him to know about the earning and expenses of that Businessman.
  16. If a person is unmarried and employed in a good company with good salary and is not having any liability then he should go for a ULIP Product.
  17. During the recommendation stage the advisor needs to RECOMMEND THE PRODUCT THAT BEST MEETS THE CLIENT’S NEEDS.
  18. If customer needs are different then although they are of same age and profession, recommending the same plan is not the desirable.
  20. LIFE INSURANCE COUNCIL is the authority which is concerned with sharing of assumed annual growth to be shared in the benefit Illustration.
  21. If after the Fact Finding Process the needs analyzed were Income Replacement and Child Education but the Customer insists only on Child Plan for the time being then agent should give A CHILD PLAN AND REVISIT THE CLIEN ON LATER DATE.
  22. The Commission Payable in ULIP Plan to the advisor is mentioned in Benefit Illustration.
  23. A widow with children with a huge legacy that is left behind by her husband is concerned with Estate Planning as her Top Priority.
  24. Objectives of Fact Finding do not include SURRENDERING THE EXSITING POLICIES FOR SELLING NEW ONES.
  25. In a Fact Finding if the couple discovered their needs to be the Estate Planning then they would be on the Retirement Stage.
  26. During the Fact Finding Process after Identifying Client’s Needs the Next step is to QUANTIFY THE CLIENT’S NEEDS.
  27. Open Ended Questions are very useful to gather information from the Client.
  28. The Benefit Illustration Passed to the Client uses the assumed rate of growth of 6% and 10 %.
  29. Insurance Protects the FINANCIAL GOALS OF THE INSURED.
  30. A person needs to do Estate Planning When HE IS ABOUT TO GET RETIRED.

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