Do I really need this insurance policy?
I don't dislike insurance when it's being used as insurance. I get skeptical when insurance is being sold as an investment.
Sometimes insurance is exactly the right tool. Sometimes an investment is exactly the right tool. Problems can start when we try to make one pretend to be the other.
I don't sell insurance.
That's intentional.
If insurance is the right answer for you, I'll tell you. Then I'll help you find someone qualified to provide it. I want the recommendation to start with the problem we're solving, not the product someone has available to sell.
What are we actually trying to protect?
If there is a legitimate risk that would financially hurt you, your family or your business, insurance may be exactly the right answer. The first job is identifying the risk and deciding whether transferring that risk makes sense.
Are we buying insurance or are we investing?
If the primary objective is growth, retirement income, tax efficiency or wealth accumulation, I want to compare an insurance based solution against noninsurance alternatives.
Would this still be the recommendation if no one were getting paid to sell it? That's a fair question to ask about any financial product with embedded compensation.
What does the policy really cost?
Look beyond the premium. Depending on the product, fees, expenses, surrender periods, liquidity restrictions, opportunity costs and compensation can all matter.
What happens if we separate the two jobs?
Sometimes using insurance for protection and investments for investing produces a simpler solution. Sometimes it doesn't. Let's actually compare them.
What if insurance really is the best answer?
Then use insurance.
I'm not anti insurance. I'm anti forcing a product into a job it wasn't the best tool to perform.
If insurance is the best answer after we've looked at the alternatives, great. I'll refer you to someone who can help you put it in place. I just won't be the person selling it to you.
Every dollar should have a job. Insurance should too.
When protection is the problem, insurance deserves consideration. When growth is the problem, let's not automatically assume an insurance policy should become an investment account.