Not Your Father’s Life Insurance Annual Review

It is hard to imagine how advisors used to do an annual review of life insurance before THEInsuranceAdvisor.COM.  Did they just review the annual statement with the client? Did they compare illustrations of hypothetical policy values for some limited number of products as the means of determining product suitability? This practice is known now as time-consuming, incomplete, and for these reasons is deemed "misleading" and prohibited by the Financial Industry Regulatory Authority (FINRA) – the chief regulator for the financial services industry.  

THEInsuranceAdvisor.COM provides research derived from various independent sources to include thousands of actual insurance company pricing representations for hundreds of different products and actual performance data for invested assets underlying policy cash value. And reveals the overall suitability of a given life insurance product relative its peer-group and based on 5 of the major factors of suitability as to 1) financial strength and claims-paying ability, 2) actual cost-competitiveness (i.e., measured separately from performance assumptions), 3) pricing stability, 4) cash value liquidity, and 5) actual historical performance of invested assets underlying policy cash values. 

One must wonder how advisors of yesteryear did their review and why some advisors continue this archaic practice of incomplete, misleading policy reviews. For any such system/service to be considered complete, independent, and objective, we believe it would have to A) be comprised of all required or customary characteristics (e.g., as defined by FINRA or the Prudent Investor Act), B) include reference to 3^rd-party data/research beyond the influence or control of the preparer (e.g., like measuring investment performance against a widely accepted benchmark such the S&P 500 or other applicable benchmarks), and C) be based on facts without influence of personal feelings, limitations, or bias. 

Policy Comparison, Policy Audit and/or Policy Evaluation systems/services offered by product manufacturers, distributors, agents and/or brokers generally involve comparison of illustrations of hypothetical policy values for some limited number of products.  Because such “illustrations” are a comingling of undisclosed policy charges and unsubstantiated performance assumptions, and do not separately measure policy expenses (as required under Section 7 of the Prudent Investor Act) separate from the reasonableness of performance expectations (as required under Section 2 of the Prudent Investor Act), they are clearly not comprised of all required or customary characteristics, and are thus not complete. 

THEInsuranceAdvisor.COM provides the empirical pricing and performance research essential to any complete investigation of life insurance policy suitability (as defined by FINRA or the Prudent Investor Act) and which can then lead to independent and objective suitability determinations.  While due care is an emerging field, and while there is room for a difference of opinion in some areas, THEInsuranceAdvisor.COM goes well beyond overly-simplified comparisons of comingled and hypothetical policy values to better protect and/or compete against those misleading Policy Comparison, Policy Audit and/or Policy Evaluation systems or services. 

 Use the Confidential Policy Evaluator (CPE) Research Reports to determine the appropriateness of pricing, the reasonableness of performance expectations for invested assets underlying policy cash values, and overall suitability for you(r) clients' policies based on the 5 factors of suitability.  Click here and get up to 3 Confidential Policy Evaluator (CPE) research reports under our NO-RISK trial subscription.