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 Avoiding 8 Common Pitfalls in Insurance Planning
 Co-founders of JPB & Associates, Jim Parks and Pete Baker, have a combined 60-year accumulation of knowledge they share with their clients. We asked Pete and Jim to share some of the common mistakes that consumers make with their life insurance plans. Below are their top eight.
1. One size fits all and cookie cutter sales people
Many agents have one company or policy they peddle to every prospective client. They are just there to make a sale. Those agents just don’t take the time to get to know you or what your specific situation is. Instead, they try to force fit you into the policy they like to sell. The challenge with this method is that everyone has different needs and goals. People want someone who understands the different types of policies and which ones fit them and what they are trying to accomplish. That is why we have access to over 60 “A” rated companies. We make them compete for our client’s insurance business.
2. No health questions asked
While agents make this kind of policy sound good, the truth of the matter is that for every question the insurance company doesn’t ask you, the price goes up. A professional agent will ask you all the health questions. Then your answers, they determine which company will give you the most coverage for the best price. Professional agents know how to present their clients to the insurance companies in the most favorable light.
3. I already have a policy and it is good enough.
Years ago, when the first cell phones came out, they were in bags with huge batteries and a cord to the handset. Now, cell phones can fit in your pocket and are more powerful than the computers that put a man on the moon. Like cell phones, insurance policies have changed too. As medical
technology improves, things that used to kill us don’t kill us anymore. And the old-fashioned life insurance policies that only pay when we die fall short of what our clients need. We partner with companies that offer a new kind of life insurance. New style policies have living benefits included that can pay you in the event of a critical illness. A critical illness could be heart attack, stroke, cancer, or multiple other named situations that don’t take your life but change it significantly. These companies also offer coverage for chronic illnesses. That is where the client loses the ability to do two of the normal activities of day to day living without help from someone else. This is the same qualifiers you would find in a Long-Term Care policy. Because medical care has improved, people are living longer and need life insurance they don’t have to die to use.
4. Set it and forget it
Similar to the response above, these clients have good coverage but have not had their policies reviewed by a trained professional agent in years. Perhaps they bought a term policy and the front page says the policy will run to age 95, but inside the policy they may find that the price is only locked in for 10, 15 or 20 years. After that their inexpensive term plan may end up costing them ten to thirty times what they were paying. But it gets worse, the cost of that policy continues to get more expensive every passing year. Wouldn’t it be better to know while you can still make changes to your plan?
Other people purchase permanent life insurance plans where the insurance company sends them an annual or quarterly statement. That usually means their policy is somehow tied to the current interest rates or the stock market. Any fluctuation in rates from the time they purchase their policy can affect how long it will perform. Many of

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