Seven steps to judging life insurance.
Journal of Accountancy › Vol. 186 Nbr. 1, July 1998
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Summary
CPAs can provide unique services to businesses purchasing life insurance because of CPAs' analytical expertise and their knowledge of clients' finances. Such purchases should be viewed as business decisions needing careful research and planning. Evaluating agents, ratings, carriers, and policy structures are important matters requiring careful attention.
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Seven steps to judging life insurance.
Many CPAs are regularly faced with clients who walk into their offices with armfuls of life insurance policy proposals and ask, "Which one should I buy?" While not all accountants are life insurance experts, they are very familiar with their clients' individual financial circumstances, which puts CPAs in a good position to help clients decide what insurance is best for them. Often the best way to judge the merits of various insurance companies, agents and the policies they offer is by using common sense. This article provides CPAs with seven steps they can follow to unearth the facts about recommended life insurance policies and the important business decisions they represent for clients.
STEP 1 EVALUATE THE AGENT Most insurance agents are commissioned sales representatives who profit financially from the advice they give. A CPA can help mitigate the risk this represents by asking the agent for third-party client references. While they most likely will be favorable to the agent, the references will provide some ind...See the full content of this document
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