Q: How is private information handled?
A: Before any specific client information is discussed, we require all Trustees/Advisors with which we work to execute a service agreement with Robertson & Co. regarding the exchange of personal and confidential information between the parties. We exercise extreme discretion with regard to the disclosure of the information provided to us.

Q: What is the difference between term insurance and “permanent” life insurance (i.e. whole life, universal life, etc.)?
A: As the name implies, term insurance is valid for a specified term (10 years, 20 years, etc.) and then the coverage automatically lapses or renews annually at a significantly increased premium cost. Term policies are typically used to mitigate the risk of hardship to a family or business in the event of the unexpected death of the insured. Permanent life insurance policies are typically designed to survive the insured individual’s anticipated lifespan, providing a legacy to the heirs of the deceased. Permanent life insurance policies are often used in estate planning because the proceeds of a life insurance policy are received income tax free by the beneficiaries.

Q: When is term life insurance a better option than permanent life insurance?
A: In many instances, we recommend term life insurance as a more appropriate alternative to permanent life insurance policies. Term life policies are often associated with "key man" policies to insulate a business from losses that may occur in the event of the death of an important employee. Moreover, for many younger individuals in good health, we recommend term insurance as a more efficient and affordable way to provide for the welfare of their family.

Q: Why do I need to review a life insurance policy?
A: Life insurance policies are financial instruments. Various factors such as interest rates and mortality costs can effect the accumulation of value within a policy. It is important to review a policy’s performance to make sure that the policy’s original projections are still valid, and capable of meeting the established goals.

Q: What is the maximum age to obtain life insurance?
A: While there is no specific age limit for obtaining life insurance, there is a sliding scale between the insured’s age and the premium cost for the insurance. If the insured is in reasonably good health, most insurance carriers will now insure individuals up to age 85 and some go to age 90.

Q: Should a “paid-up” life insurance policy still be reviewed?
A: Absolutely. If an insurance policy is “paid-up” there is no longer any need to make premium payments to sustain the insurance coverage. However, these policies are typically older policies with very high cash value to death benefit ratios. If this is the case, and the insured individual is in reasonably good health, you may be able to roll over the cash value in the policy to a newer, more efficient policy and substantially increase the coverage amount without sacrificing any security.