4 Ways of Determining the Right Life Insurance Policy for You

Attorneys, accountants, life insurance agents, and other financial services professionals constantly are required to provide an opinion as to the efficacy of a policy for a particular client and to assist in selecting between competing policies. This discussion will focus on the factors that professionals must consider in determining the right policy. The material provides rule-of-thumb guidelines that should speed up the decision-making process and help professionals determine if the factors they are considering follow generally accepted life insurance planning principles.

Once professionals determine the proper amount of coverage or insurance need they have a responsibility to perform analyses in the following four areas:

1. select the type of insurance product (or product mix) that is appropriate for the client;

2. deciphering life insurance policy illustrations;

3. reviewing policy comparison measurements; and

4. studying company comparison measurements. Although the life insurance industry as a whole has an incredibly good record for safety, performance, and service, the past insolvencies of a few major life insurance companies make it more important than ever to select the insurance company carefully.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

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