Beware of Agents Bearing Guarantees

Katt, Peter C.
June 1996
Journal of Financial Planning;Jun96, Vol. 9 Issue 3, p20
Academic Journal
This article discusses the question whether a financial planner would be impressed with exaggerated guarantees or conventional guarantees. The reality is that all policy guarantees are worthless because insurance companies have no right to print money or raise armies. For far too many companies and agents, life insurance selling is a long-running game of "hide the pea"--using one sales gimmick after another to confuse communes in the hope the tactic will result in sales. Policy illustrations have been a major player in this shell game, as life insurance agents emphasize the importance and certainty of projected policy values, only to have customers disappointed as actual policy performance fails to meet the agents' earnest and frequently ignorant promises. Most of the exaggerated guarantees are death-benefit-only guarantees-that is, there is no minimum cash value guaranteed. As such, insurance companies have no ability to protect themselves against external events that could cause their policy guarantees to simply evaporate.


Related Articles

  • Agents of trust. Ang, Benjamin // Asia Insurance Review;May2015, p102 

    The article reports on the 15th Asia Pacific Life Insurance Congress held in Bali, Indonesia. Topics discussed include the importance of the agency model, the need for sophisticated solutions and continuous education. Additional topics discussed include the preference for financial advisers and...

  • About Full Disclosure And Blease Research.  // National Underwriter / Life & Health Financial Services;8/3/2009, Vol. 113 Issue 15, p17 

    The article offers information on the Full Disclosure, a policy comparison and evaluation software series, which is designed for brokers, agents, financial planners and advisors in the life insurance market. Interested individuals can obtain further information about the software through...

  • Building trust. Rogerson, Lindsey // Money Marketing;4/21/2005, p51 

    Focuses on the need for investment and financial advisers to rethink the way they advise on life insurance in Great Britain. Perception of trusts by the public.

  • Sanity amid euphoria. Kosnett, Jeffrey R. // LAN: Life Association News;Oct97, Vol. 92 Issue 10, p52 

    Offers tips for life insurance agents on how to provide financial planning services to their clients. Life insurance agents as securities brokers; Increase in number of investment advisers; Clients' demand for more financial and investment insights from life insurance agents; Understanding the...

  • Life office backers keep IFAP on independent path. Shaw, Sam // Money Marketing;5/19/2005, p64 

    Reports that the life and pension companies behind IFA Promotion (IFAP) have voted to keep IFAP on independent path in Great Britain. Decision to maintain the support of IFAP only to independent financial advisors; Criteria for receiving referrals.

  • Full Disclosure Survivorship Life Report. Blease, Roger L. // National Underwriter / Life & Health Financial Services;8/8/2005, Vol. 109 Issue 30, p27 

    Discusses Full Disclosure, a policy comparison and evaluation software series designed for brokers, agents, financial planners and advisors active in upper market life insurance sales in the United States. Features of Full Disclosure software; Product design objectives; Illustrated values for...

  • The John Newton Russell Memorial Award. Mseka, Ayo // Advisor Today;Jan2006, Vol. 101 Issue 1, p58 

    The article focuses on the award nominations for the John Newton Russell Memorial Award. The award draws attention to the valuable role life insurance and other financial vehicles play in the lives of millions of Americans. The award program is open to any agent, advisor or industry executive....

  • Life offices ignore adviser's questions. York, Nicola // Money Marketing;1/10/2008, p15 

    The article reports on the claim of CBK company principal Peter Chadborn that life insurance offices ignore to answer adviser's questions on policy due to cost cuts in Great Britain. He expresses that the offices provide standardised list of answers which state that the firm have inadequate...

  • Women Can Have It All. Bupp, Michele // Advisor Today;Mar2006, Vol. 101 Issue 3, p42 

    The article profiles Katherine Forrester, the young woman who established her solo practice as life insurance and financial advisor near Minneapolis, Minnesota. Her first love was providing music therapy for young adult AIDS patients. However, she was forced to help get back into order the...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics