Male 55 year old non-smoker in excellent health. Flies a Boeing 737 for a major airline. in excellent health with just minor asthma. Decides it is time to seriously look into squaring everything away for retirement. Follows up on a lead for a financial planner who charges him to review his investments. Afterwards goes to meet with him in his office and is given two insurance policies as his plan. One plan is a million dollar whole life for $500,000 costing $17,987.37 per year. the second is a 20 year term policy for $1,000,000 costing $8,470.00. The term policy is to actually cover the additional insurance need he will need in case of premature death.

The life insurance agent does a couple of things kind of shady here. When designing the plans, the agent tells the client that he was not adversely underwritten for his aviation. Upon inspection of the quotes though, his risk class was assessed at standard although he was obviously a preferred to super preferred prospect. The move to standard is a demotion, but the agent obscured this by saying he didn't get a substandard quote. Not quite a lie, but definitely not full disclosure.

Next, the agent wanted to replace all the client's policies including the $550,000 in coverage that is being subsidized through work for $560.00 per year. The agent also glossed over the investment preferences the client was most interested.

So let's get down to how well the proposal performs. Current earnings is a good reference for how a plan will perform in the future, and according to the illustration the agent used to sell his proposal, when the client reaches age 74, he will have paid $359,740 into the policy and may have grown with interest to $452,788 or $93,048 in growth over 20 years. Not exactly stellar, and if you check the guarantees, the only thing the insurance company really has to pay, the policy will actually lose $126,076 in value. Not exactly the position a 55 year old wants to go. The insurance agent wanted our client to esentially put all of his eggs into this rather porous basket.

Instead we supplemented his $550,00 with another $1,000,000 of guaranteed premium 20 year term that had a conversion option to age 75 which will allow us coverage to age 100 if need be. Our $3175.00 premium saved him $22,722.00 per year. He was interested in diversifying with some personal property investing and some mutual funds. Simple calculations that $22,722.00 invested annually compounded at a conservative 5% would yield $788,890.84 by age 75.

He obviously went with our option, and said the thing that he had the hardest time coming to grips with was that our policy analysis and recommendations were free, he spent over $500 to get the wacky option from the "financial planner."

Male 55 year old diabetic suffering some neuropathy, current a1c of 6.4. Also diagnosed with sleep apnea 7 years ago and was compliant with cpap. Being treated for acid reflux and high blood pressure.

Had been approved by A+ rated company at substandard table 2. For $250,000 of 10 year term, was charged $1,451.25 per year. We submitted a positive health credit request with one of our A+ companies and got a preliminary acceptance before we applied. We then submitted our application and instead of the typical 6 week process, our file was routed to the underwriter who we had worked with prior and he approved the policy in 18 days at standard. Total price $1,115.00 per year or 24% savings.