Life Insurance Agents/Brokers Are Financial Advisors Too? YES!
- LIR TEAM
- May 3
- 4 min read
In today’s financial world, titles can be confusing and dangerously misleading. One of the most common misconceptions we see at LifeInsuranceReview.com (LIR) is when consumers think they are working with a real financial advisor, when in reality, they’re working with a life insurance agent or broker using the “financial advisor” title to promote and sell a product — typically a cash value life insurance policy or annuity.
It’s Technically Allowed… But Still Misleading
Here's a hard truth: Life insurance agents who DO NOT have an active securities license do often suggest that a client sell investments like stocks, mutual funds, or ETFs and instead move those funds into a life insurance policy or annuity.
But just because it's allowed doesn’t make it right. These insurance-based products often pay the highest commissions in the industry, giving agents a strong financial incentive to prioritize a sale over your best interest.
At LifeInsuranceReview.com, we’ve seen far too many cases where clients were told by so-called “financial advisors” to cash out their 401(k), IRA, or brokerage account to fund an Indexed Universal Life (IUL), Whole Life policy, or fixed-indexed annuity — without being shown other alternatives, risks, or long-term implications.
The Real Problem: “Financial Advisor” Is an Unregulated Title
Anyone with a life insurance license can call themselves a financial advisor, financial planner or even retirement planner. That’s right — even someone with no formal training in investment management, no fiduciary duty, and no experience in tax planning can legally market themselves as a retirement planning expert.
This leads to confusion and poor financial decisions. Many consumers believe:
They’re receiving fiduciary advice.
Their “advisor” has reviewed all options.
Their retirement plan is being built strategically.
But in reality, many of these so-called advisors are just licensed to sell insurance.
Life Insurance Sales Disguised as Retirement Planning
Here’s how it often works:
The agent presents a life insurance policy or annuity as a retirement plan, often touting tax-free income, protection from market losses, and guaranteed growth.
They recommend rolling over a 401(k) or IRA, or liquidating investments, to fund these products.
They use high-pressure tactics and fear-based language about market volatility, taxes, or inflation.
In the end, the consumer walks away thinking they’ve made a safe, smart retirement move — when they’ve really just purchased a high-commission insurance product.
What Makes LifeInsuranceReview.com Different
At LifeInsuranceReview.com, we cut through the sales talk and provide independent, expert analysis on life insurance and annuities — without trying to sell you anything.
We are:
Fiduciary advisors, held to the highest standard to act in your best interest.
Licensed in investments, insurance, and retirement planning — not just one piece of the puzzle.
Referred to by CPAs, attorneys, registered investment advisors (RIA) and Certified Financial Planners (CFPs®) who trust our objectivity.
Experts in evaluating whether your existing life insurance or annuity is appropriate or could be improved.
8 out of 10 policies we review show serious opportunities for improvement. Whether they were oversold, misunderstood, or misaligned with the client's goals — we uncover what others miss.
How to Protect Yourself
Before trusting anyone who calls themselves a financial advisor, ask the following:
Are you licensed to give investment advice (e.g., Series 65 or Series 7)?
Are you a fiduciary legally required to act in my best interest?
Do you receive commissions and/or additional sales incentives for promoting or selling life insurance or annuities products?
Are you allowed to give tax advice?
If they can’t clearly answer these questions, or if they only talk about insurance products, proceed with caution.
It’s Easy to Get a Life Insurance License
Another concern: It’s not hard to get a life insurance license. In most states, it only takes:
A few hours of online coursework.
Passing a multiple-choice test.
Yet, these newly licensed agents can immediately go to market calling themselves a “financial planner” or “retirement expert” — and start selling high-commission products to consumers who don’t know the difference.
The Bottom Line: Don’t Confuse Sales With Real Advice
Life insurance and annuities are not bad products — but they’re often sold the wrong way by the wrong people.
If someone recommends moving your retirement funds into an insurance-based product, stop and ask:
“Is this truly in my best interest — or just the most profitable recommendation for the agent/broker?”
That’s why LifeInsuranceReview.com exists — to give you a second opinion, from professionals who are paid for their advice, not by commissions.
Frequently Asked Questions (FAQs)
1. How can I tell if someone is a real financial advisor?
Ask if they hold fiduciary licenses like Series 65 or Series 7 and are registered with the SEC or a state. If they only have an insurance license, they are not investment advisors.
2. Is it legal to recommend selling investments to buy life insurance or annuities?
Yes — if the agent holds a securities license. But it's often done for commission-driven reasons, not because it’s the best option for the client.
3. Can life insurance be part of a legitimate financial plan?
Absolutely, when used strategically. But it should never be the only option presented. A true plan includes investments, tax strategies, risk management, and savings goals.
4. Why are so many agents pushing cash value policies or annuities?
Because they offer high, often front-loaded commissions. This financial incentive can skew the advice you receive — even if it’s presented as part of a “retirement strategy.”
5. What makes LifeInsuranceReview.com different?
We don’t sell products. We analyze your current life insurance and annuity strategies, compare them to other available options, and give objective, fiduciary-level advice you can trust.
Life Insurance Agents/Brokers Are Financial Advisors Too? Unfortunately for consumers, they can also call themselves that.
✅ Ready for a second opinion?
Visit LifeInsuranceReview.com to schedule a confidential, no-pressure policy review. Whether you’re holding term insurance, whole life, IUL, or annuities — we’ll tell you the truth about what you own and what your options are.
