Fiduciary vs. Suitability: A Standard of Care Comparison Table

Michael Burton, CFP®, LHICComparison Tables, Compensation, Fiduciary Standards

Fiduciary vs. Suitability

The life insurance industry is spending billions of dollars through a fierce political lobby to protect its sales force from being held to the highest standard of professional accountability: the fiduciary standard.  An obvious question is, why?  It’s a more involved question with more complex answers than I will explore in this post. The chief and most disturbing problem I observe … Read More

Can you buy too much life insurance?

Michael Burton, CFP®, LHICExplosive Facts, Industry CommentaryLeave a Comment

Too Much Life Insurance

September marks the beginning of Life Insurance Awareness month, wherein the industry urges its collective sales force to remind everyone how important life insurance is . . . and that they probably don’t have enough. Since you’ll have an ocean of agents fully equipped to show you why you need more life insurance, I thought I might offer up a … Read More

Where The Rubber Meets The Road, Part 1 (of 3)

Michael Burton, CFP®, LHICUncategorized

Life Insurance Buying Process Image

The life insurance buying process may be understood to occur in eight steps. Some of these steps may be more distinct than others. Some may not be observed or fully appreciated by the client since they occur largely behind the scenes. Nevertheless, all of these elements are appropriate to buying life insurance with the client’s best interests in mind. I … Read More

The Q&A Files: Who can I name as my life insurance beneficiary?

Michael Burton, CFP®, LHICLife Insurance Beneficiary, Q&A

Life Insurance Beneficiary Bag of Money 714x700 Compressed

Assuming you own the life insurance policy in question, there are two basic time-frames in which you can name a life insurance beneficiary. You can name the life insurance beneficiary at the time of your application, and You can change the life insurance beneficiary any time after the policy is placed in force. Let’s explore both instances. At the time of … Read More

A Mind-bending John Hancock Surprise

Michael Burton, CFP®, LHICComparison Tables, Explosive Facts, Fractional Premium APRs

In my most recent post, I published a table of Fractional Premium APRs for every major company in the life insurance industry.  To conduct that research, I used quotes for a $1,000,000, 20 Year Term policy issued to a 45 year old male in excellent health.  In that post I indicated that I had spot-checked other policy sizes and term durations to determine … Read More

A Table of Fractional Premium APRs in the Life Insurance Industry

Michael Burton, CFP®, LHICComparison Tables, Explosive Facts, For Professionals, Fractional Premium APR

Fractional Premium APRs image

All life insurance companies allow their policy holders to choose the frequency of their premium payments.  The most common payment modes include annual, monthly, quarterly, and semi-annual.  When a policy holder elects to pay a fractional premium (anything other than the full annual premium for the coming year of protection), almost all life insurance companies add to the costs of the policy. In … Read More

Genworth Gets Two Moves. Its Customers Get One.

Michael Burton, CFP®, LHICIndustry Commentary, Insurance Regulation

Genworth Rate Increase

Today, I am having a conference call with two Genworth (GNW) executives to discuss some of the questions I raised in my prior post about GNW’s large rate increase here in Texas and across the nation. In preparation, GNW has generously supplied me with several policy forms (specimen policies) affected by the rate action. Based upon my first review of … Read More

Genworth Bets Heavy on LTC Brokers to Save The Day

Michael Burton, CFP®, LHICCommissions, Industry Commentary, Insurance Regulation, Uncategorized

Genworth Rate Increase

Yesterday, Genworth Life Insurance Company (Genworth) hosted a webinar for Long Term Care (LTC) insurance brokers who have sold its products in Texas. The webinar was scheduled in response to the outcry of its brokers who, like myself, were stunned to learn there will be a 50.1% Genworth rate increase for policies we had sold to our clients. In this … Read More

Explosive Fact: The Suitability Standard Doesn’t Govern Most Insurance Transactions!

Michael Burton, CFP®, LHICExplosive Facts, Fiduciary Standards, Insurance Regulation

Life Insurance Suitability Standard Explosive Fact Image

Lost in the din of the debate over the Department of Labor’s Fiduciary Rule is the reality that the life insurance industry is not even being held the suitability standard, yet. Don’t believe me?  Look what I found buried in the last pages of a mandatory Continuing Education course I’m presently taking: Traditionally, the legal requirement that a life insurance recommendation … Read More

We couldn’t find it. So we built it.

Michael Burton, CFP®, LHICComparison Tables Logo

We just finished the creation of – a life insurance “quote and compare” engine that offers on-demand pricing for life insurance without forcing the site visitor to “unleash the hounds” of insurance salespeople on himself/herself. TermLifeComparison searches pricing from over 100 insurance companies – that’s six to ten times the dozen or so companies quoted on most life insurance quoting engines on … Read More