Bill Boersma: On Life Insurance

As is often the case, I recently found myself drafting a letter of explanation to a professional advisor explaining something a life insurance agent was attempting to relate. Assuming that the advisor I am working with is likely not the only one in the market with the same lack of understanding, it seems worthwhile to share excerpts of the letter in a generic format. The point of the exercise was to help the advisor make sense of an agent’s recommendation to pull the trigger on a transaction because the insured individual was “changing age” for insurance purposes and the premium was going to increase. Read more…