Procedures and Cost for Basic
Analysis of Term Insurance Options
- Determine the clients reason for obtaining insurance
and for considering any policy that may already have been
- Recommend amount of insurance based on needs analysis,
- Determine whether client is willing to seek insurance
from the company or companies that Life Insurance Advisors,
Inc., would recommend, or whether client is only willing
to work with an agent or broker affiliated with other companies.
- Determine whether there is any possibility that client
will want to convert a portion of the term insurance to
permanent coverage at some time in the future.
- If there is no possible interest in future permanent
insurance coverage, look for lowest cost term insurance
based on clients possible underwriting (health rating)
outcome and consistent with the need for a financially sound
- If there is a possible interest in future permanent insurance
coverage, suggest a company with attractive term insurance
rates that also offers the most competitive permanent insurance
- Determine the length of time that coverage might be desired,
and compare costs and benefits of annually increasing premiums
with guaranteed level premiums for fixed periods.
- Review the financial strength ratings of the alternative
insurers from the various rating agencies (A.M. Best, Moodys,
Standard & Poors, Fitch, and Weiss Ratings).
- Review employer-provided term insurance options with
other alternatives outside of work.
- Review health, financial, and lifestyle factors that
could influence the underwriting process.
- Suggest policy ownership alternatives based on financial
circumstances and objectives.
- Coordinate and supervise the application with agent/broker
to anticipate and address any medical and financial underwriting
issues that might arise in the application process.
- Oversee application by agent/broker to other or additional
life insurance carriers if underwriting results from initial
application do not produce desired results.
Estimated cost for service: $250-$1,000. Estimates provided