“Financial advisors are solution providers, and it is our responsibility to match the client’s requirements and expectations while suggesting a plan, said Bahubali Shah, a 21-year MDRT member from India.    

He says, “Some of the basic fact-finding questions to understand the client could be: 1) How do you look at your current profile and job satisfaction level? 2) What can be your satisfying level of achievement – money, peace of mind or both? 3) What are your priorities in life towards financial growth and family? And 4) How much importance do you give to yourself and your health and culture?” 

Uncovering the facts 

Although finding accurate facts about prospects is not always easy, it’s important to consider numerous factors, including lifestyle and unhealthy habits such as smoking and drinking, which most people usually hide from financial advisors.  

Sunil Agarwal, a two-year MDRT member from India, shared, “One should also ask the prospect about the type of business or profession he or she is involved in. We must also determine their family history while suggesting a plan. In addition, we must note that some insurance schemes don’t require knowing in advance if the client will renew the policy. But because of the time and effort put into creating the best financial portfolio, we should find which clients will have longstanding relations and which ones won’t.”  

Understanding expectations 

In a similar vein, Ruchi Agarwal, a five-year MDRT member from India, said, “When you are into a business of investments, it’s crucial to understand what business your client is in and his or her risk appetite. She adds financial advisors must also find out the target return that the prospect is expecting, and their preferred mode of investments, such as direct equity, mutual funds, bonds, or otherwise. 

While fact-finding may be one of the most critical and challenging tasks that a financial advisor undergoes while addressing a prospect, asking the right questions can help to make it an easier process. In turn, this makes the prospect feel safe to share the facts openly. With the right inputs in hand, financial advisors can efficiently create a robust financial portfolio for prospects and ensure long-term retainership.  

Contact: MDRTeditorial@teamlewis.com