PFP2503. Life Insurance in the Wild and Annuity Mysteries of the Deep

Due to the complexity of the insurance profession, many investment advisors and financial planners may choose to work with insurance agents that may be large producers, but the producers may not be fully aware of the complexity of the products that they represent. This course will simplify what you need to know, the questions you should be asking, and how to drive more value to your client whether you are working with an insurance professional or insurance is a component of your practice. Not your average risk management course. Insurance is primarily a solution to help when bumps in the road happen. However, there is much more to consider. 1. Getting more out of permanent life insurance. We will apply an example of the PFP compensation disclosure standards that you should expect from those you work with which could enhance the outcomes during negotiations for the application of life insurance policies for your clients. 2. Riders that transform insurance with living benefits. Against a backdrop of risk management solutions that are ever evolving to tap into the behavioral finance emotions of the public, key contractual provisions will be simplified so you can communicate solutions effectively with your clients. To better relate to an evolving consuming public, the construct of contracts and terms of products shifts over time, so much so that it may be difficult to keep up with the changing nuances of products. 3. Fixed Income Insurance (Formerly Equity Indexed): What you need to know to protect your clients. There are three key clauses that you need to know about that can both be an inducement and a severe limiter for returns. 4. Compare Cash Balance and Variable Universal Life Insurance Outcomes. Cash balance is the hidden opportunity for tax practitioners and financial planners. Only 0.4% of employers with employees have availed themselves of the Cash Balance Plan opportunity. If the business owner’s health is good, an option to consider is the use of a variable life insurance policy. 5. Current regulatory environment. Regulatory changes in the insurance industry are requiring disclosure that may not have been required before, like compensation, and that guarantees may be voided under certain economic conditions. Generally, some disclosures, such as those around compensation, are required only if the insured issues a specific request. We will touch on regulatory changes and what you should expect from your insurance professional.