Sell unto others that which you'd buy yourself
In many situations we advise clients to purchase lower premium 20 or 30 year guaranteed level term insurance rather than higher premium permanent life insurance. The hypothetical premium differential between a proposed permanent policy and the term policy is then invested in an index or mutual fund.

Uncompromising honesty is our only policy
We guarantee full disclosure of all aspects of an insurance program, not just the positive points. As such, we focus significant attention on the tax and financial risks of highly touted insurance programs such as split dollar variations and certain welfare benefit plans.

If it sounds too good to be true, it is
Many of our competitors were selling a tax deductible split dollar life insurance plan called the Charitable Legacy Plan. The program, which is currently under IRS scrutiny, was brilliantly promoted by an insurance marketing organization, in conjunction with a charitable foundation. It was clear to us, and many reputable charities, that this was a plan destined for most probable failure.

Quantify, Quantify, Quantify
We prove every strategy, involving the use of life insurance, analytically prior to implementation. Any proposed insurance program must be economically superior to other non-insurance options, or the client should not be purchasing the insurance. An insurance program that can be proven to be effective analytically is second to die life insurance, owned by an irrevocable life insurance trust, for funding estate tax liabilities.

If a particular product is heavily mass marketed by the insurance industry it probably isn't appropriate for your client. Almost $100 billion of variable annuities were sold in 1998. Any vehicle which ultimately turns capital gains into ordinary income, without the benefit of receiving a tax deduction upon investment, probably isn't an advantageous vehicle for clients. To make matters worse, over 25 percent of all annuities were purchased by qualified retirement plans and IRAs.

Service, Service, Service
The purchase of life insurance is not a single transaction. Ongoing monitoring of policy performance, in addition to changes in facts and circumstances, dictates a long-term commitment to excellent client service. Unfortunately, due to the compensation structure of life insurance, most agents prioritize prospecting over ongoing service. The focus on maintaining long-term relationships with clients and their advisors is a primary goal of CPAGENTS^®