Life insurance illustrations based on the National Association of Insurance Commissioners’ model regulation were created to educate and protect the consumer during and after purchasing life insurance. We examine advisor beliefs about life insurance illustration effectiveness using data collected through an online survey. Over one-third of respondents believe that illustrations are “less than effective” as a consumer education and protection tool. Less than 15 percent consider illustrations “more than effective.” We find no evidence that advisor compensation method shapes opinions about illustration effectiveness, however, agency relationships between advisors and insurers and between advisors and consumers significantly impact advisor opinions.
|Pages (from-to)||55 - 73|
|Journal||Journal of Financial Services Professionals|
|State||Published - May 2015|