What should an insurance producer do before recommending a product?

An insurance producer should assess the client's needs and circumstances thoroughly before recommending a product because this step ensures that the advice provided is personalized and relevant to the client's specific situation. Understanding a client's individual needs, financial goals, risk tolerance, and personal circumstances allows the producer to recommend products that align with those factors. This approach fosters trust and demonstrates a commitment to the client's best interests, which is fundamental in ethical practice.

In contrast, simply offering a product based on commission disregards the client's unique requirements and could lead to recommendations that are not in the client's best interest. Referring the client to another producer may leave the client feeling unsupported or confused, rather than receiving tailored advice. Promoting the most popular product without assessing individual needs risks recommending a solution that may not be suitable for the client. Therefore, properly evaluating the client's circumstances is the most ethical and professional approach in this context.