What Corporate Executives Should Know And Ask About Life Insurance
- Topics:
- Directors and Officers Coverage
- Tags:
- Business Operations,
- Corporate Insurance,
- Finance,
- Financial Planning,
- Insurance,
- Life Insurance,
- Life Insurance Advisors,
- Policy Performance
- Source:
- Life Insurance Advisors
FREE Registration is required
Overview: This article discusses what corporate executives should know and ask about life insurance. Due to the widespread use of life insurance as a funding vehicle for executive benefit and similar corporate plans, its quality and potential rate of return deserve much greater attention than it customarily receives both at the time of purchase and on an ongoing basis. Policy performance depends on four factors: gross investment returns, mortality charges, expenses, and policy persistency. It is often possible to structure the components of a permanent insurance product to reduce the traditional agent’s commissions by approximately 85 percent. Thus, increasing capacity in the reinsurance market has raised the likelihood that those with health impairments can obtain insurance on a favorable basis. Executives willing to take the time to understand the basic factors that account for the relative performance of life insurance companies and products and wary of the potential pitfalls will be most helpful in enabling their companies to meet its corporate benefits objectives.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 507KB | Date: Jan 2003 | Pages: 28
