Policy Design
Why the Objective Should Come Before the Product
5 min read
A policy is an instrument. Before it can be selected, the objective it serves has to be defined: what is being protected, for how long, with what funding, and with what need for access.
Two clients with identical ages and health can require entirely different structures because one needs a defined-period death benefit and the other needs a permanent contract with sustainable long-term funding.
Beginning with a favored product inverts the analysis. Beginning with the objective allows carriers, structures, riders, and funding patterns to be compared on the basis of whether they serve that objective.
This article is educational and general in nature. It is not legal, tax, accounting, or investment advice, and it is not a recommendation of any product or strategy. Policy features, riders, and availability vary by carrier and state, and coverage is subject to underwriting and carrier approval. Non-guaranteed values depend on credited interest, policy charges, funding, withdrawals, loans, and other policy activity.