How To Pass The Philippine Life Insurance Exam: Traditional and VUL Reviewer for Financial Advisors

Planning on becoming a financial advisor? Aspiring financial advisors and insurance agents need to pass the insurance exam administered by the Insurance Commission. Most people fear that they will not pass the insurance exam so we created this blog to help you increase your chances of passing the insurance exam for financial advisors.

 

Types of Examination

There are two types of examination that insurance agents need to take:
1. Traditional Examination – this examination is mainly about the following:

  • Definition of Life Insurance
  • Types of Insurance
  • Insurance Companies
  • Services of Life Insurance
  • Basic Life Insurance Terms
  • Plans & Riders
  • Underwriting
  • Policy Provisions
  • Quality Business
  • Code of Ethics

2. Variable Examination

  • Introduction to Investments
  • Risk and Rewards
  • Key Considerations Before Investing
  • Types of Investment Instruments
  • What is VUL
  • Single Premium VUL
  • Basic Transactions of VUL
  • VUL vs Traditional
  • Code of Ethics

 

First Things First

Initially, you have to select the right team to join first. It is important to choose the right team to join because it really does not matter which insurance company you join (Sunlife, PRU Life, Insular Life, Manulife, Philam Life, AXA, etc). Most of the insurance companies have similar and competitive products and you can succeed regardless of which company you choose to join, it is really about your individual performance not the insurance company’s performance.

What is most important is that you choose the right team, right mentor, the right colleagues and the right environment. This will insure that you will succeed in this career regardless of which Insurance Company’s product you are selling. You will notice that many successful advisors come from different companies. But, one thing is common: they all joined very good teams who have supportive mentors, leaders and colleagues.

The right team to join must have the following characteristics:

-competent leaders that you can be proud of
-great support system
-the team develops tools and processes that will help you grow

Because of the recent pandemic, we are adding this:
-the team is able adopting a strong digital strategy = meaning the team is investing in tools, websites, applications, strategies, trainings to help the agents thrive even in the new normal (aside from what the insurance company is providing)

 

Which one should I take? Traditional or Variable Exam?

Most likely you will be taking the Variable Exam first since most products now that are being sold in the Philippines are variable products or products whose returns are based on the stock market or bond market.

However, you can also take the traditional exam if you are into selling whole life, term insurance, group insurance products or health insurance products. In Insular Life we have a health care company called Insular Healthcare that sells HMOs and health cards. If you want to sell HMOs or Group Insurance, contact us so we can give you a brief orientation.

Group insurance products are insurance products that require at least 5 people to be sold and are cheaper than individual insurance. Think of it as a bundle program that is why it is cheaper. These products include benefits for employees upon death, disability, accident or sickness. These may also include a retirement program for employees that give guaranteed interest and not based on the stock market. There are only a very few insurance companies who are able to cater to group insurance. In my recollection I think only Insular Life, Phil-Am Life and Cocolife offer a complete range of group insurance products. Other companies say they offer group insurance but in reality they don’t. They just sell individual VUL retirement products to the employees. The disadvantage of this is that once the employee resigns, the VUL will also go to them and not go back to the company.

 

Non Life Insurance

If you are also planning to sell non life insurance such as property insurance, car insurance, cargo insurance and more… you may also get in touch with us. Insular Life has all products available for sale by its financial advisors:

  1. Life Insurance through Insular Life
  2. Group Insurance through Insular Life
  3. Health Insurance through Insular Healthcare
  4. Non Life Insurance through Mapfre Insular

 

Exam Preparations

Since we are sure of the exact details of what other teams are doing, for this blog we will discuss the preparations that we do in our team at Team Aetos.

The level of preparation you need will depend on the type of exam you are going to take. Most financial advisors take one exam first. Some financial advisors take both traditional and variable all together.

The Variable Exam is more technical investing and has computations.

The Traditional Exam is more on legal, insurance and ethics.

Both examinations are all multiple choice and a total of 50 questions to be completed in one hour.

To prepare for this exam, our financial advisors take the online video reviewers and take the mock exams in our team’s website. Each batch of mock exam below has 50 questions. There are 8 mock exam batches available in our website.

Watch The Traditional Exam Reviewer and Take Online Mock Exam Here

Watch The Variable Exam Reviewer and Take Online Mock Exam Here

 

Staying Positive

Most of the time you will feel scared that you will not pass the exam. Don’t be discouraged. Just keep on  praying, keep learning, keep studying. If you took the mock exam and passed it, most likely you will pass.

 

The Examination is Just the Start of Something Greater

Passing the examination may be a great accomplishment for you but the greater battle is in your actual performance. Most financial advisors even after getting good exam grades, do not even get to sell at least one insurance/investment. Others pass the exam yet do not even understand the concepts of insurance and investing because they only studied the multiple choice mock exam but did not really try to understand the concepts wholeheartedly.

For me, based on my experience as a financial advisor for more than 10 years now (since I was 21 years old) and having my own insurance agency, I was able to train different types of candidates. I noticed that those who succeed are not really those who are very good in the insurance exam but those who persist even when it seems difficult.

I wish you all the best in the insurance exam. I pray you will be successful as a financial advisor.

If you not yet sure if you want to become a financial advisor, just give it a try. Who knows this might be your calling in life.

The first step to becoming a financial advisor is to know if you are fit to become a financial advisor.

Next Step: Take This Quiz To Know If You Are Fit To Become A Financial Advisor

If you want to sell HMOs or Group Insurance, contact us so we can give you a brief orientation.

 

 

 

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