Facts About Life Insurance

Why to use a Fee-Only Life Insurance Advisor--and not an agent--to help you find the right life insurance products for your needs.

Reasons to use a Fee-Only Life Insurance Advisor
A Heart Stopper

A successful cardiologist was talked into purchasing a large amount of life insurance as part of a questionable tax scheme.   He’d set up a trust to provide severance benefits, but those earnings were taxable. His agent proposed that if his trust contributions went into a life insurance policy, he wouldn’t pay any tax on the income, since life insurance cash-value gains are tax-free.


Unfortunately, an IRS auditor did not concur, and when the doctor was hit with $600,000 in taxes, penalties and interest, he hired a Fee-Only Life Insurance Advisor. The advisor first introduced the doctor to a tax lawyer who had his tax bill cut in half. Then the Fee-Only Life Insurance Advisor objectively analyzed the doctor’s true life insurance needs.  


He ultimately prescribed a diversified life insurance program, including both term and permanent insurance for additional savings of more than $200,000. The consultant's fees for all this work were less than half of the annual premium the doctor had been paying. The doctor has referred several clients to the consultant.