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

Regarding “No Load” Life Insurance

Michael Burton, CFP®, LHICCompensation

No load life insurance

Introduction The existence of non-commissioned life insurance (a.k.a. “No Load Life Insurance”) might seem to undermine the Exclusive Right to Represent contract we use with our clients.  This post addresses that situation.  It is the long answer to the simple question: “how do we get paid when the insurance company won’t pick up the tab?” First Things First:  The Client Gets … Read More

The Exclusive Right to Represent: The Loyalty Exchange

Michael Burton, CFP®, LHICCommissions, Compensation, Industry Commentary

As the name of our company suggests, when we at Fiduciary Life Insurance Services agree to help someone acquire life insurance, we only do so under a fiduciary standard of care – an obligation we put in writing.  However, because of how contract law works, the obligation becomes legally valid only if there is an exchange of value.  In other words, … Read More