Life Insurance as a Problem-Solving Tool

Only when the thought process described above has been employed should the planner arrive at a particular tool or technique—and the process should continue even after that selection. 

Assuming life insurance has been chosen as the best vehicle for the job of solving one or more of these client problems and it has been ascertained that it can be used in a cost-efficient manner, the question then becomes, “what specific life insurance ownership and beneficiary strategy would best meet the client’s objectives?” 

Planners must continue to ask and answer many additional questions such as: 

  • “What is the right type of life insurance for this client and how much is needed?” 
  • “What specific life insurance ownership and beneficiary strategy would best meet the client’s objectives?” 
  • “What company (or combination of companies) could answer the identified product needs best?” 

Use The Tools and Techniques of Life Insurance Planning as a complementary text to the other Tools and Techniques books to round out your ability to ask and answer questions such as these. 

The Tools and Techniques of Life Insurance Planning will focus on life insurance as a problem solver and: 

a. define each tool or technique; 

b. explain when the tool or technique is indicated and should be considered; 

c. illustrate through an example how the tool or technique is implemented; 

d. cover the tax ramifications of the strategy; and

e. cover various questions regarding the practical application of the strategy.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

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