Term vs GUL vs IUL vs Whole life

[rousemark]

The problem about giving advice about another carriers product is that specific needed details may not be able to be obtained by an agent. IE' giving a client specific advice on a clients conversion privilege might be able to say yes or no by seeing if the conversion expiration has went past or not. But telling the client what products the carrier might allow the term to be converted to may not be accessible to the agent attempting to give advice or audit a policies details such as MEC status, cost basis, etc. General advice might be appropriate but specific advice might be outside of scope & may be an item not covered by E&O if giving advice requires life insurance counselor licensing

Don't know about your state but there is no such thing as an Insurance Counselor License here..

 

[Allen Trent]

Don't know about your state but there is no such thing as an Insurance Counselor License here..

That is good. Michigan does. See below.
DIFS - Counselor

 

[rousemark]

That is good. Michigan does. See below.
DIFS - Counselor

If I read it right a non resident that holds an insurance license in a state that requires an examination automatically qualifies as a Counselor without taking any other action. Of course it doesn't affect me one way or the other as I do not sell over the phone and I sure ain't moving to Michigan....

 

[jcorr]

Maybe I'm being slow (wouldn't be the first time) but I'm still not seeing anywhere where it's illegal to give specific advice about another carriers product. It may be ill advised or it could end up being wrong, but illegal?

 

[DHK]

Illegal... probably not. Is it a good idea? Not necessarily.

Just because one gives "incidental" advice, or even "suggestions" to someone who isn't a client, doesn't mean that you are exempt from the potential consequences.

FINRA award goes to client after advisor’s tax oversight

I uploaded the article in a PDF - just in case this article link doesn't work one day.

 

[rousemark]

Lot of difference in talking about someone's insureane and giving ta

Illegal... probably not. Is it a good idea? Not necessarily.

Just because one gives "incidental" advice, or even "suggestions" to someone who isn't a client, doesn't mean that you are exempt from the potential consequences.

FINRA award goes to client after advisor’s tax oversight

I uploaded the article in a PDF - just in case this article link doesn't work one day.

A lot of difference between talking with someone about their insurance policy and giving tax advice... Even insurance companies put tax advice disclaimers on their materials..

 

[DHK]

True, but it could all fall under an E&O claim.

 

[Allen Trent]

$500K was converted to Prudential GUL which cost $2069 (year) . i did request him that i want to be paid up in 20 year. so total cost of this will be $41380. and return will be $1 mil.. (the policy is up to 120 year or something) . and ofcourse i also didnt care about cash value. because true WHOLE life was same cost for 1/10 of the face value.

nice. you can always even pay more on it even quicker to get the guaranteed covered sooner. IE: if you get a $10k bonus or a large tax refund you can send it into the policy (if it has current year IRS premium room). this way, you don't have to wait 20 yrs

 

[pfg1]

spam bot again it appears

 

[MVI]

If I wanted to secure $1mm of death benefit coverage for my family the rest of my life I would also consider "living benefits".

Living benefits are endorsements and riders that the named insured can use while they are alive under certain circumstances.

For instance, waiver of premium for disability, chronic illness rider, terminal illness rider.

Premature death is not the only risk factor. Some call the risk of disability "living death" because of the financial impact it can have. Remember universal life has alot of riders to consider - so talk to your insurance professional about it.