How to Be a Financial Advisor

A financial advisor is a very rewarding job but, it is also a job that requires lots of patience and hard work. Just like any other earning opportunity, you need to dedicate time and money to run this kind of business. The income is small at first, but as you grow your network, your income will also start to grow. The income potential in this career is endless! You can earn whatever amount you want, but you need to put in the right kind of effort to make it work.

Do you want to be a financial advisor? In this article, you will learn what a financial advisor does and the steps required to become a financial advisor.

How much does a financial advisor earn?

In the Philippines, a financial advisor usually earns a commission for every product sold to the client. The commission may vary depending on the product sold and the company that offers it. On average, the commission per product is around 25% to 40%. Most insurance companies in the Philippines offer incentives to their financial advisor upon achieving certain criteria and these criteria are usually based on the number of sales and revenue.

Common benefits of a financial advisor

  1. Cash incentives
  2. Health card
  3. Travel incentives
  4. Flexibility to work at your preferred time and place

Financial advisor job description

  1. Create a prospect list or list of potential clients
  2. Discuss financial goals with clients 
  3. Explain the services that you offer and how they can benefit the client
  4. Recommend services that will help the client achieve their financial goals
  5. Ensure that the client understands the benefits and the risks involved in investing
  6. Help clients plan for basic needs such as health expenses, education, and retirement
  7. Monitor client’s accounts and be able to give recommendations as the need arises

Do you need to go full-time?

Most companies will not require you to work full-time as a financial advisor. In fact, most of the financial advisors I know started their careers doing part-time only. Whether you want to go part-time or full-time is completely up to you. However, if this is your first time to work as a financial advisor, I personally recommend that you start doing part-time only. It is just practical to match your income from your work with your income as a financial advisor. This is a good first goal if you wish to go full-time as a financial advisor.

Financial advisor application process

  1. Choose an insurance company that you believe in
  2. Contact a financial advisor from your selected insurance company
  3. Secure an agent’s training program from the company
  4. Take the licensing exam given by the Insurance Commission
  5. Submit the agent’s application requirements to the insurance company

Choosing the company to join

The first step to becoming a financial advisor is to choose an insurance company that you believe in. You need to do your research, so that you won’t join a company based only on your first impression. Find out what their products are and how their investment funds are performing. Find out how long they have been in the insurance business. You can also ask people you know who bought their products and ask them about their experience. By learning more and more about the company, you will be more confident in selling their products. In the Philippines, there are many reputable companies that you can join. AXA, Sun Life, and PRU Life are among the top reputable insurance companies to name a few.

Contacting a financial advisor

There are two ways to apply as a financial advisor. The first way is by applying directly to the company. This process is applicable in all companies, but this usually takes time because they will still need to connect you to an agent. The second way is to contact a financial advisor directly. In this way, they can guide you with the application process. They will provide you a list of requirements that you need to submit to the insurance company. Normally, the agent will also present to you the benefits of joining the company.

Agent’s training program

Each company has a different way of training its applicant. In AXA Philippines, the training is done online. You will be watching videos that give you the basic information that you need to have in order to pass the licensing exam. At the end of each training module, there is a practice exam that you need to pass so that you can secure a printable examination permit. This printable permit is a requirement when taking the licensing exam at the Insurance Commission.

Taking an insurance licensing exam at the Insurance Commission

The insurance licensing exam is a multiple-choice exam of about 50 to 60 items. Be sure to bring a photocopy of your valid government ID and the examination permit. The Insurance Commission also enforces a dress code in their office. Avoid wearing shorts, slippers, and sandals to prevent inconvenience. Proper semi-casual business attire is a must before you can take the exam. The examination result will be available right after you take the exam. Be sure to get a copy of the result because this will be one of the application requirements of insurance companies.

Application requirements for a financial advisor

After passing the licensing exam, the last step is to submit the requirements. Each company may have a different set of requirements but there are five requirements that are common to all companies and these are:

  1. Filled-up application form (provided by the company)
  2. Photocopy of unexpired valid government ID
  3. Exam result (with a passing grade) from the Insurance Commission
  4. Professional tax receipt (secure this from your city hall)
  5. TIN

Once you’ve passed the licensing exam and upon submitting the application requirements, you can now start your career as a financial advisor.



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