Do insurance agents feel bad when they collect your premiums?

I was talking to a potential candidate who happens to be ex-insurance agent from an insurance company.

As we spoke, we had a conversation to why he was under performing in that company. There were plenty of reasons as well as excuses but some reasons I can relate to was the insurance company did not have the solution he wanted for his client. For example, the company does not have the feature to cover 100% As-charged for the medical plans and he strongly feels the need to cover the full amount. And because of the lack of product, he has to convince the client that it is not important to cover 100%. It is important as a financial planner to convince ourselves that the recommended plan is the most suitable at the point of recommendation. And we will get the same plan if we are in the same shoe as the client. In his case, he failed to convince himself and thus failed to convince most of his prospect. I had that same thoughts when I was with a tied agency. I know something ought to be done or can be done better but the hands are tied to the products I have. I am glad that this scenario is almost impossible now because as an IFA, I have different financial solution from different financial institution and I plan according to what is best for my clients base on my belief. This indirectly leads to reason #2 of under performing.

Although he managed to close the deal, he felt bad when he collects the premium. That happens primarily because he knew he had force-sell a product which is not to the best of the client’s interest. I do not blame him for that for it is very common for new advisers to feel bad when they collect the premiums regardless how professional they are. This is partly because they felt they are just selling a product. I went through that phase too.

However, when you service the first claim…it may not be a death or tragic scenario. It can be just a simple hospital plan that had saved the client from paying $20,000 out of his own pocket. The real value of insurance will be appreciated. The real value of an insurance policy is neither the premium that will be paid nor the benefits of the payout but how different it will be without the insurance payout. An financial planner who survived long enough in this industry will understand he may feel bad about collecting a premium and nothing happens but he will feel worse if the premiums was not collected and things happen.