The Agent sold Dr. and Mrs. Jones two 20-year term policies in 2000, each having a $5 million death benefit. Dr. and Mrs. Jones are high wealth clients with many insurance and investment products in their portfolio. The monthly premiums for these particular policies were $300/month for Dr. Jones and $250/month for Mrs. Jones. Their policies were set up to pay the premiums through automatic monthly bank account deductions. The Update To The Policies In 2010, the Joneses wished to replace … [Read more...]
Life Insurance Agent: With Fee Disclosure, Oversharing is a Good Habit
As a life insurance agent, assuming your clients understand a product’s fee structure and have read the disclosures can lead to hard feelings, or worse, an errors and omissions claim. That’s what happened in one of our Errors and Omissions Claim scenarios. John, the client, rolled over an old annuity contract into a new one on his Agent’s recommendation. The new annuity had several attractive features, including a 10 percent signing bonus and a guaranteed income rider, but two years of … [Read more...]
E&O Claim Scenario: “Imperfect File Administration?”
Sharpen Your Skills With Our E&O Claim Scenarios We believe that insurance professional can improve the service that the client receives by sharpening their professional skills by looking over case studies and scenarios that have lead to E&O claims. Application Submitted to Two Carriers A client came to an agent seeking life insurance. The application was submitted to two carriers, Carrier A and Carrier B. An application was completed which denied the existence of a pre-existing … [Read more...]
Retirements Open Insurance Sector to Young Talent
Big demographic changes in the insurance sector are opening up career options for Millennial-age people who like the idea of flexible schedules and being their own boss. Such jobs also provide a new career path for older workers downsized during the Great Recession who want a new line of work. In the five years between 2013 and 2018, at least one fourth of the insurance industry’s workforce is expected to retire, according to research from management consulting firm McKinsey & Co. … [Read more...]
E&O Claim Scenario: “More Than Just A Sale”
Improving Your Professional Skills We believe that an insurance professional can improve the service that the client receives by sharpening their professional skills by looking over case studies and scenarios that have lead to E&O claims. An Errors and Omissions Case Study: The Facts Sally was a 50-year-old who had worked for a large national transportation company for 20 years. At the time of the transaction in question, her annual salary was $60,000. Technological advancements plus … [Read more...]
3 Eye Opening Affinity Scams & What You Can Do About Them
The biggest threat to your clients’ financial security may be closer than they think. The Internet and widespread adoption of social media create conditions ripe for affinity fraud, which uses a potential investor’s faith, ethnic background, country of origin and even fondness for football as a lure. The fraudsters are either members of the target group or pretend they are. In almost all cases, the investment is fake or, at the very least, the promoter lies about vital details, … [Read more...]
When Does a Longevity Annuity Make Sense?
A funny thing happened on the way to the 21st Century. A large potential client base doesn’t lose as much sleep wondering what will happen if they die too young. What keeps them up at night now is worry that they’ll live too long - and outlast their assets. As average life spans get longer and pensions - not to mention Social Security retirement benefits - get less certain, fear of outliving a retirement nest egg hatches into more than a headache. Interest Grows in Longevity … [Read more...]
Lattes, Lunch or Life Insurance – Which Costs More?
Most U.S. adults greatly overestimate the annual cost of a $250,000, 20-year term life insurance policy, believing coverage costs at least two to three times what it really does. The Average Annual Cost Of Coffee At the same time, people routinely spend more each year on lattes and out-of-office lunch runs than what a standard term policy would cost. For example, the average U.S. adult spends at least $1,100 on coffee drinks outside the home - nearly 3 times more than the annual cost of a … [Read more...]
Monthly Payments Make Affordable E & O Coverage More Accessible
With direct online purchasing, Get Insured 24/7 made buying Errors and Omissions coverage effortless. Now, Life and Health Agents can spread out the cost of their annual professional liability policy rather than pay a lump sum up front. Pay For Your E&O Insurance Monthly For as little as $34.05 a month, insurance agents can spread out an important cost of conducting business. Our “Monthly Pay Option” involves one payment of 25% down followed by 10 more payments on the first of each … [Read more...]
Claim Scenario: “Boilerplate Language Not Always Best Defense”
Sharpen Your Skills With Our E&O Claim Scenarios We believe that insurance professional can improve the service that the client receives by sharpening their professional skills by looking over case studies and scenarios that have lead to E&O claims. This is part of our series for Life and Health Insurance Agents that looks in depth at E and O insurance claim scenarios. An Errors and Omissions Case Study: The Facts Dr. Johnson came to the Agent’s office to discuss his disability … [Read more...]
