Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

The Policyholders Behavior Matters: 🔄💼 #shorts

21 Jul 2023 · 1 min

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0:40

A short YouTube clip by Richard Canfield arguing that understanding individual policyholder behavior is essential to designing suitable life insurance contracts. The speaker contrasts permanent versus temporary death benefits ("cash follows the leader" refers to permanent death benefit) and emphasizes that different designs produce different policyholder outcomes even though administration by the insurer is the same.

Chapters

I think once you develop a deeper understanding of what the policy owner's behavior is going to be, you can design a policy accordingly. And that is not a cookie cutter approach to every single person. And when we talk about cash follows the leader, the leader is the permanent death benefit. You can design a policy that has a very large temporary death benefit and the cash ain't following that portion of it anywhere. One policy owner's outcome is going to be different than the others, and the administration of the contract is going to happen by the insurance company regardless the same way. But one policy owner's outcome is going to be different than the other guaranteed.