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Executive
Summary
The
purchase of Life Insurance involves many factors. Those involved
in the process must determine which insurance carrier, policy design,
and underwriting requirements best suits the needs of the client.
Due to the complexity of the process, the client defers the insurance
plan design as well as the carrier selection to trusted advisors
who have an in-depth knowledge of both the client’s financial picture
and the relative role life insurance may play. These highly ethical,
unbiased fiduciary professionals are the attorney and CPA. It is
the objective of all parties to select the most appropriate insurance
product to meet the needs of the client.
The role that Rockbridge Financial
takes is to provide case design and underwriting services to those
professionals who are involved in the selection process on behalf
of the client. Both the client and the trusted advisors must understand
all the factors and potential risks from an unbiased resource before
the client makes a long term financial commitment. Therefore, the
trusted advisor who assists the client in the selection process
undertakes additional financial responsibilities which may incur
some from of potential liability if the recommendation is not discovered
to be the best available product and cost. There are several issues
the advisor must consider before any recommendation is made.
Issues
the advisor must address:
1)
the experience of those individuals who are directly
involved in the plan creation
2)
policy design and alternative strategies: Life Settlements,
premium financing, etc.
3)
the underwriting process and the potential risks associated
with the client’s medical ratings
4)
liability issues and policy
reviews
5)
compensation
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