Life Insurance in Retirement Planning
Journal of Retirement Planning (08/01) Vol. 4, No. 4 p.5; Baldwin, Ben G.

There is a considerable amount of commotion in the financial planning community as planners search for the best way to communicate to the consumer about how they are compensated. When assisting a client with their financial planning, planners would like the consumer to be aware of the conflicts of interest surrounding how they are paid, writes Ben G. Baldwin for the Journal of Retirement Planning. According to the National Underwriter magazine, the Insurance Marketplace Standards Association and the National Association of Securities Dealers are developing more model regulation on suitable sales practices. In addition to regulating all recommendations concerning life insurance, not just those that result in a sale, this new model regulation might help with the sometimes time-consuming and expensive "pre-approval" process. While advertising materials must be pre-approved before being given to clients, there is currently no provision for educational material--particularly that material which is needed by clients who have seen their equity accounts plummet. The National Association of Insurance Commissioners suitability-working group is also working on life insurance suitability model regulation and is hoping for adoption by year-end.


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