The Right Life Insurance Policy for Your Client? 

Featured by YOUR BUSINESS WORTH, posted in Buy and Sell Agreements, Company Wealth, Estate Planning, Executive Benefits, Funding your Buy and Sell, Income from your business, Inside Sale, Key People_Or Group, Passive Ownership, retirement

By Thomas J. Perrone, CLU, CIC

Before the advisors can give you their opinion, they need to know whether the problem is permanent or temporary.  See, buying term insurance when the problem is permanent is like wetting the bed, eventually you will have to get up and change the sheets.   

Not only does the insurance broker have to ask tough questions about the coverage, but also the other advisors that are part of the team.   

Too often, advisors knee jerk to one type of plan because of the lack of information they have, or their misconceptions of coverage.  In many cases, the knee jerk suggestion is the wrong one.   

This video covers some important points of what is needed to make the right decision about the coverage.   

Questions such as:  

  • How long will the problem exist 
  • Age of the insured 
  • Is the problem permanent like tax liability or does it have a predictable ending date 
  • Actual cost when comparing the value of cask value 
  • Renewal rates in the future 
  • conversions of coverage – is the coverage convertible 
  • cash flow predictable 
  • Is the problem a reoccurring one 

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