Here's how we see life insurance:
- Term Life meets the needs of most people
- Universal Life meets the needs of some people
- Whole Life meets the needs of a select group of high net worth clients
Every policy has their place in the market, otherwise they wouldn't exist. The problem, however, is that the policies that the fewest people need (whole life) pay the highest commissions to agents. This creates a conflict of interest between the agent and their clients. After all, how will clients ever know they truly got the appropriate insurance policy? It's not that we're anti-insurance, we just don't feel comfortable with the commission model that the insurance industry prescribes to.
Since life insurance is still a very important aspect of protecting one's wealth, we've decided to still help our clients with their insurance needs, we just don't accept commissions for the sale of products. Instead, we work with our clients on an hourly basis to ensure we give them our unbiased opinion about their insurance needs, and to make sure they get the best insurance policies for their situation. This way, we're not incentivized to sell unneeded policies to our clients and we can maintain our fiduciary responsibilities.
We have a select few insurance companies that we work with, some of which are structured as not-for-profit companies. We don't receive any kickbacks or incentives for referring our clients to them; We simply use them because we feel it's in our clients' best interest.