There are a few things that really raise my ire. One of those is lying. Especially, if it's to one of my clients! Last week an interesting thing happened and I learned a valuable lesson in the process. Here's the story.
A few months ago I wrote an application for a term life insurance policy on a client. When the policy arrived it was at a higher premium than was expected. In fact, the savings was only $19 per year. At first blush, I was simply going to return the policy and recommend the client keep their existing coverage.
Earlier that day, the client had a discussion with their agent and was told that their current policy could be converted to a permanent policy 'at any time' and that it would be done 'automatically' in the event of a disability. The agent also said that the premium would be decreasing due to the dividends generated by the policy.
The "automatic" conversion didn't sound right and neither did the "conversion at any time," since the policy listed a final conversion date, well prior to the end of the term. Additionally, I had never heard of dividends on term insurance so I decided I'd better read the policy.