EST2406. Guarantees, Projections and All that Jazz: An Analysis of How to Evaluate Life Insurance Proposals

A life insurance proposal may run 30-40 pages and include multiple ledgers, spanning many decades, with abundant disclosures and footnotes. In this session we will give you practical methods and insights to quickly analyze life insurance proposals and focus on the key issues for your client’s long-term benefit. This workshop will focus on key assumptions and variables in life insurance illustrations and equip you with pertinent questions to help clients discern the best value for their family’s objectives. Specific to life insurance for estate planning, we will review policy riders for changing coverage needs (due to estate growth and changing exemption amounts) along with private split dollar considerations and premium financing considerations in a higher interest rate environment. Provide more value to your clients by focusing on the most critical issues for their life insurance planning.

Learning Objectives:

• Apply a shortcut to quickly find both guaranteed and hypothetical results in a life insurance proposal.
• Determine the key variables that most impact long-term projections for your client’s policies.
• Identify the top five issues that could significantly change the actual vs. illustrated results of a life contract.
• Analyze new riders offering flexibility in 2nd-to-die coverage for the TCJA Sunset.
• Compare potential pitfalls in Premium Finance proposals
• Select best-practices for buy-sell insurance in light of Connelly case.