Beware… Series

Hi Brian: I believe you’ve heard me discuss term convertibility before. This is the policy owner’s right to convert to a permanent policy at the favorable existing rates of the term policy with no underwriting.  This means the insured individual could have been diagnosed with cancer or had a heart attack or has taken up a dangerous hobby or sport or will be planning foreign travel to a country that would preclude favorable underwriting, etc. and still be able to convert to a permanent policy on a favorable basis. This would be obviously financially beneficial if one discovered he had

Not everything from an insurance carrier can be taken at face value. I’ve long understood that people and computer systems at home offices of multi billion dollar organizations are as infallible as the rest of us. Here’s a recent situation: I ordered in-force ledgers from an insurance carrier recently. Once I received and reviewed them I was sent the results of the exact same request from another advisor one month earlier. They were different though there was no change in any aspect of the policy nor had we even passed a policy anniversary.  I went back to my internal contacts

This piece is to advise policy owners and advisors to be beware of taking what you see on in-force ledgers from a life insurance at face value every time. I have two recent examples regarding policy loans. In one case I knew the policy had a significant loan but it was not reflected on the ledger. When I investigated I learned ”… the company system doesn’t have the capacity to illustrate a loan.” Really? In another situation with a major carrier, the loan didn’t show up anywhere in the projections. All of the numbers on the ledger were gross and

A financial advisor referred to me a client for the primary purpose of evaluating a large cash value policy. In the course of talking with the client he discussed a few term insurance policies, including one through his place of employment. Following is an expert of my email to the referring advisor. I wanted to check and let you know that I’m continuing to converse with Mr. Jones. As a result of our initial conversation I discovered that he has voluntary term insurance through his work. For $500,000 of it he is paying the premiums himself. As is the case