June 2020

I hope everyone is well and adjusting to our new “normal way of life”.  Hopefully, there’ll be a further easing of restrictions shortly.    

Since I started my Personal CFO business, I have a greater appreciation that permanent insurance could be beneficial, under the right circumstances.  Permanent insurance would be either whole life or universal life policies.  There might be a need for permanent insurance to finance the buyout of a deceased partner or a family might own a large amount of illiquid assets, which when deemed disposed of on death, could result in a large tax liability that needs to be funded.  

Every situation is different.  Every family is different.  People have mixed views on purchasing insurance, be it term or permanent.  I’ve met many people who have been confused by the advisors selling the insurance.  They’re unsure whether they’ve bought the right type of insurance, it’s for the right generation of the family or it’s the right solution.  

The insurance industry has set itself up as an estate planning business..  Ask yourself “how can someone be an estate planner when they’re only selling one solution?”  We all know commission paid on some of these policies is very large.  The banks have climbed onto the bandwagon over the last few years.  I’ve been in so many meetings when the bank representatives put forward insurance solutions “to help” their clients.  

It’s extremely difficult to sell insurance, be paid a large commission and not have this influence the judgment of the person selling it.  What do you do in this situation?  Engage a Personal CFO to help you navigate this minefield!

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