Finding the Right Life Insurance Advisor for You
One of the most important steps in purchasing life insurance is finding an advisor that you can trust. After all, they will be the one to walk you through all product options and carrier application processes. You want to find an advisor that will represent your interests instead of their own.
Misrepresentation, in short, is the desire of a life insurance agent to deceive through negligence or lying, and a failure to uphold the professional requirement of diligence. A misrepresentation can occur in the form of advisors calling themselves financial planners or financial consultants, and they may be breaking state laws by doing this, unless they have obtained special licenses. In many states, financial advisors, planners, and consultants are considered separate professional groups, requiring specific licenses. Even in routine contacts, an insurance or financial advisor's discussions with a prospect or client may touch on legal or tax matters. Giving a client or prospect specific legal or tax advice can be construed as practicing law without a proper license, and can be illegal.
Another form of misrepresentation is by presenting a life insurance policy as a savings plan, cash-accumulation fund, educational savings plan, individual retirement plan, or as any other similar savings device without making it clear that the underlying product is life insurance, can constitute misrepresentation and can be illegal.
Life insurance illustrations are another area where misrepresentation can occur. If illustrations are not explained carefully, the prospect or client can easily be misled into believing that the policy promises significantly greater benefits than those guaranteed in the contract. Allowing misconceptions regarding benefits, or fostering them through the sales presentation, is a serious form of misrepresentation.
Another major area of concern shared by the states is the unjustified replacement of existing life insurance policies in order to sell new ones. Unwarranted replacements can threaten the policy owner's benefits, undermine the insurer's underwriting practices, and damage the integrity of the advisor.
At Pivot.com, we comply with all applicable laws and our entire staff is committed to helping you find the right life insurance coverage that meets your needs. We want to make insurance simple and ensure you get the right information. Our PivotCare Team is here to be your trusted source for all of your life insurance needs.
About the author: Kyle McDonald holds FIC, FICF, FSCP® & CLTC designations. His viewpoint on life insurance is simple, “Anyone with a family must have life insurance. In the end, life insurance is for others you care about, not you.” He is ready to help you and your family get the best option available. Contact Kyle today at 1-800-651-1953 or KMcDonald@Pivot.com.