NAIFA Live! The Gotchas & Trap Doors of Life Insurance

Speaker:  Robert Cohen

Date:  6/20/2019 – Minneapolis

Event location:  Ewald Conference Center

Event time:  2:00p – 4:00p CENTRAL TIME

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Course Title:  The Gotchas & Trap Doors of Life Insurance

Course Duration:  1 Hour

Course Description:   This course will provide attendees with the foundation of some of the variable within life insurance products that Insurance Companies use to make sure they are profitable and how that comes at a huge cost to the client.  We will review the history, beliefs and perceptions of the public and other advisors within the planning community on life insurance.    We will begin with the analysis of premium options on life insurance policies and how clients rely on the insurance company’s earnings to sustain their policies.  We will talk about the changes life insurance companies can experience and how they pass those changes on to the consumer.  We will dive deep into life insurance illustrations and show how difficult they are for consumers to understand.  While briefly talking about “Premium Financing” as a topic, we will discuss some terms that are told to clients that could harm them, if not completely understood.  Finally we will layout the importance of a good policy review and why that this is imperative.

Learning Objectives:

Increase advisor’s knowledge and understanding of:

• How difficult of a position a client is in by not understanding their life insurance.
• The nuances that a life insurance policy has that every advisor should know.
• How to initially structure life insurance for their client to ensure policy success.

Presentation Timed outline:

• Flaws in the Life Insurance Industry and Products – (5 min)
• Introduction – (5 min)
  • Beliefs of life insurance products, insurance advisors and their role and the risks of life insurance
  • Beliefs of the importance of life insurance
• History of life insurance products and performance – (5 min)
• Life Insurance premiums don’t equal cost – (10 min)
  • Analysis of premium options
  • Life Insurance Co. required earnings to sustain policies
  • Risk transfer to Insurance Co. or the Policy owner?
  • Premium/Risk ratio
• Life Insurance company changes to contracts – 5 min)
  • Interest rate environments
  • Cost of Insurance and Mortality expenses
  • Insurance Companies that get out of the life insurance business
• “Gotcha” Terms that can harm a client – (5 min.)
  • Flexible/Adjustable Premium
  • Client doesn’t need to pay all the premiums
  • Variable life insurance
  • Second to Die policies
• Premium Financed Life Insurance – (5 min.)
  • Clients that fit premium financing, how it works and why collaboration with all advisors is imperative
• Life Insurance review – (10 min)
  • The importance of a regular policy review for the client
  • How to conduct and service the review of a life insurance policy
• Conclusion

REGISTER FOR NAIFA LIVE HERE