The Biggest Misunderstanding When Evaluating Life Insurance Policies

When it comes to life insurance, the word “guarantee” may have different meanings. The first question that should be asked? “Is the guarantee conditional or unconditional?”

Here’s why:


There’s hardly ever a problem when a policy has unconditional guarantees. “If you pay this premium, we will pay this death benefit to your age 120” is an example of an unconditional guarantee.

In almost every problem case we review, everyone assumed the policy did indeed have that level of guarantee. They missed the “if” in the contract. IF it performs at a certain level. IF we don’t raise our fees… Then, suddenly, something goes wrong.


Don’t leave it to chance. Every policy has some level of guarantees. Questions like, “How long will it remain in force at this premium level?” and, “Can that change?” are a good place to start. Ultimately, the most important answer needed is this, “Is the policy really going to pay when the beneficiary needs the money?

In our experience, the examination of an existing policy can be even more beneficial than the acquisition of a new one. In both cases, the same level of scrutiny is needed to answer the question, “Are the guarantees conditional or unconditional?” If they’re only conditional, what does that look like going forward?


Thomas Jefferson believed “Knowledge is power.” When it comes to life insurance, knowledge is also the peace of mind that people are safe.


I sure wish that I had known YOU 20 or 30 years ago, when I received terrible advice and no guidance.

M. H.

Independent Policy Review: The insurance world can be difficult to navigate. Without a clear understanding of their current plan, it’s difficult to be certain that your clients have the right coverage. If you’d like to take a closer look, you’ve come to the right place. We can answer your life insurance questions and provide the clarity you need to sleep easy.

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