Why do so many insurance salesman call themselves finacial planners when they are anything but?

Gladicouldhelpu: Why do so many insurance salesman call themselves finacial planners when they are anything but?
Nothing bothers me quite like insurance salesman that call themselves “financial planners”. They would rather sell someone whole life insurance than explain to them how a Roth IRA with ETFs works. I wonder if they are just ignorant or if they actually understand that they are insurance salesman and they have no clue about retirement planning.

Answers and Views:

Answer by R3D3
All of them.

Answer by Jewel D
Because if they called themselves Insurance Salesmen, people would run a mile without listening to them.
Actually, they really are financial advisers/planners as they can assist you in how best to invest your money as well as working out a portfolio for you.

Answer by timcdfw
I think you are right )

Perhaps its because the word ‘salesman’ instantly causes a defensive reaction to most people who hate to be pressured to buy something.

Financial planner sounds more like a coach that wants to coach you instead of make you buy something you dont need or understand :))

Yikes!

Answer by Michelle
I don’t know. I guess because the words “financial planner” impress people who don’t know any better and there’s a lot of suckers out there who don’t. Those guys bug me all of the time by singing the praises of whole life policies and how much cash value they’ll have and how their policy is beating the S & P and their competition and how my LT disability policy sucks and I should cancel it and buy theirs, and blah, blah, blah! A good certified financial planner (there are several different certifications out there) would actually look at your entire situation and tell you the truth about what fits your situation – term or whole life insurance, ROTH or traditional IRA, stocks, saving, etc. and explain why – NOT push their products on you and act like it’s the greatest thing since sliced bread. I’ve decided that the next time “that guy” corners me at Starbucks or wherever that I’m going to actually ask the “financial planner” what his commission % is on each product he suggests. 😉

Oh – another trick I learned. When I tell them that I’m an accountant and I ask one or two educated questions that doesn’t fall in line with their practiced sales pitch it really throws them off and they leave you alone. No offense to all of the insurance guys out there but seriously, don’t call me, I’ll call you. Thank you! 🙂

Answer by JQT
As others has already mentioned, by calling themselves financial planners/advisors is likely to open more doors. I think a bigger issue is that the insurance industry as a whole trying to sell annuities and life insurance as investment products.

The situation you described is no different from sales people of financial institutions selling and pushing their own products that has nothing to do with the well being of clients overall financial health. And they too calling themselves financial planners/advisors.

Great article in the Oct 2007 issue of Money magazine, called “Inside the mind of your advisor” discussing this exact topic. At this point, it is “buyers be aware”.

Best wishes.

Answer by roxygo1980
I work in insurance right now and some agents are actually qualified to be financial planners as well. At my office, we do sell annuities such as Roth IRAs, even pension plans, etc. But the thing is.. what we deal with day in and day out is insurance, and though annuities are available, when people are seeking an INSURANCE agency, they usually are trying to find insurance specifically. The agents here don’t refer to themselves as financial planners/advisors, even if they are qualified to be. I think it is a generalization that insurance people are dishonest or don’t know what they are talking about. True professionals in the insurance industry don’t try to get one over on the public, it’s completely unethical. And although I don’t have my investments through where I work, I do go to them for retirement advice as they really know what they’re talking about, better than my actual “financial advisor” does sometimes.. But maybe i’m just lucky and we’re the exception. I know first hand that a lot of agents are very sleazy and use unfair tactics to make a buck.

But the truth is, it is a cut throat business, and agents rely on sale of their insurance products to make money. It’s a commission basis most of the time, and some people just place income above ethics. I am from the school where if you treat people right, they will come back and send their family, producing more income than mass selling a load of crap to people who will inevitably become dissatisfied and spread a lot of negative word of mouth. But even above money, I can’t believe some people can look at themselves in the mirror after what they do.

Answer by C M
Technically, they are financial planners because of the liscences they carry, but some choose not to sell all the products that are out there. I know, it is annoying!

Answer by fsfa
Stockbrokers do it too. The way you know someone has some degree of planning knowledge is if they use the word “Certified” in front of the “financial planner”. Even that is no guarantee. Better yet, ask if they have a “fiduciary duty” to you, or do they work for some company.

Answer by Mary B
I agree.

I wouldn’t go to an insurance salesman for financial planning anymore than I would go to a General Practice physician for heart surgery.

Answer by spiro goken
They are only interested in making the quick buck. They will say anything and use any title to persuade the client to by Insurance so that they can make the Commission. They are hungry people and unfortunatley have learned that there are many gullible people who will believe anything and once they sold the Insurance or the product or the idea that they are Finance Planners they are OK there is no forthcoming refund because the Naive Clients dont know much about Financial Planning or the Difference between Finance Planning Retirement Planning or other Fashionable and High Sounding Phrases