The problem with sales illustrations: why it exists and how it should be addressed

Article Abstract:

Many insurance agents, clients and other advisers have been treating policy illustrations as a product rather than just a possible forecast without adequately considering the factors on which the illustration is based. This problem has led to inflated expectations from customers, inaccurate comparisons with other companies and incomplete disclosure on the part of insurance agents. This problem has been recognized and some state regulation enacted but insurance agents and clients still have to be educated about the real purpose of illustrations and specific disclosure requirements enacted.

Analysis, Laws, regulations and rules, Marketing, Training, Disclosure (Insurance)

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Special report: how companies are answering the IQ

Article Abstract:

An American Society of Chartered Life Underwriters and Chartered Financial Consultants survey of responses to the Life Insurance Illustration Questionnaire (IQ) indicated illustrations alone cannot be used for policy comparisons. The responses reflected the industry-wide diversity in the uses, practices, and understanding of such illustrations. IQ responses can provide agents with indications of a company's general approach. Ultimately, thoughtful agents understand the merits and disadvantages of using the IQ.

Life Insurance, Direct Life Insurance Carriers, United States, Management, Surveys, Insurance policies, American Society of Chartered Life Underwriters and Chartered Financial Consultants

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