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
Investor's Estate Plan is a House of Cards

A real estate investor who considered himself financially savvy mistakenly followed the estate-planning advice of his life insurance agent.

Consequently, his entire estate plan was a single variable life policy for $40 million.  As if the variable aspects of the policy weren’t confusing enough, the agent also recommended a split-dollar payment method, that had premiums paid by a variety of sources (and the death benefit ultimately split accordingly).

Confused, the policyholder finally consulted with a Fee-Only Insurance Advisor and learned that the probability of his insurance lapsing was over 60%—assuming a 10% investment return. And if the investment return were 8%, the lapse probability increased to 85%,

Although the real estate investor was used to taking risks, this one made no sense.  Based on the advisor’s analysis and advice the client dropped the variable life policy with all its moving parts and purchased $10 million of life insurance to supplement his growing portfolio of liquid assets, assuring his estate would meet his goals. In annual premiums alone he saved thousands of dollars.