Facts About Life Insurance

Why to use a Fee-Only Life Insurance Advisor--and not an agent--to help you find the right life insurance products for your needs.

Reasons to use a Fee-Only Life Insurance Advisor
A Charity Case?

The Oldfields built a business worth more than $100 million--and, over the years, acquired various life insurance policies from several agents to provide cash for estate taxes. But they rightly wondered if they were overinsured--especially after they found out that by establishing a charitable foundation their projected estate taxes would be reduced from 50 to 20 million.


One of their life insurance agents approached them with a scheme to roll all the policies into a single no lapse policy for the purpose of paying estate taxes. The agent suggested that the death benefit would be guaranteed and that their ongoing premium would be just $250,000 annually.


Realizing they were in over their heads, the Oldfields hired a Fee-Only Life Insurance Advisor to review the agent's proposal and offer other recommendations.  He gave them three options:
  1. No new insurance, but a restructuring of existing insurance
  2. No lapse insurance split into two policies--one paid with a lump sum, the other with annual payments.
  3. Market-priced insurance that allowed the Oldfields to pay minimum premiums for the $20M while waiting to see if they wished to increase their charitable contributions.


After underwriting in order to compare prices, the Oldfields chose a combination of the second and third proposals and rejected the original agent's first proposal. They saved more than $800,000, including the Fee-Only Insurance Advisor's well-earned fee.