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Case Methodology

Katt & Company uses the following methodology when working with clients. Whenever possible, the client is presented with a range of options and enough information to make an informed decision. Katt & Company's goal is to make each client an informed life insurance consumer.

Engagement Agreement
  A written agreement is required under Michigan's Life Insurance Counselor's license. This agreement clearly identifies Katt & Company's responsibilities with an estimate as to the amount of time it will take.
Data Collection and Assessent
  The first planning step is to obtain pertinent financial and family information from the client. This is a crucial step as it allows the client to establish his or her life insurance related goals.
Preliminary Life Insurance Planning and Purchase Report
  After obtaining financial and family information, a preliminary planning and purchase report is prepared. This report identifies a reasonable range of planning and purchase options. After studying and discussing this preliminary report, the client selects the planning and purchase options believed to be in his or her best interests.
Supplemental Reports (as needed)
  Supplemental reports are prepared whenever clients need additional information to make informed decisions. Examples of supplemental reports include a simulated comparison of variable and universal (or whole) life; and a comparison of projected values based on whether the policy's values grow inside or outside of the client's estate. Again, decisions that have been made and time expended are written in case management memos.
Existing Life Insurance Report
  Concurrent with the reports described above, Katt & Company reviews, evaluates, and comments on life insurance the client already has. These reviews are usually completed about the time the final decisions on overall life insurance program are made so that the existing life insurance can be melded into the new program.

Recommending the replacement of existing policies is a rare event. Replacement is recommended only when the existing policy appears to e substantially overpriced, the financial strength ratings of the company are below average, or the policy setup is a problem and there is no prudent way to change policy ownership of beneficiary without causing potentially adverse tax consequences.

Company Policy Selection Report
  Katt & Company uses three criteria in recommending a specific company and policy: the financial strength ratings; the reputation the company has for fair policyholder treatment based on our experience and judgment; and legitimate pricing advantages, such as low-load and blending full-load policies to reduce selling expenses. In large cases two or more companies are frequently recommended to provide diversification.
Purchase Report
  When the specific policy(ies) has been selected, the client is presented with a purchase report. This report identifies and explains pertinent information and purchase decisions that need to be made. Examples include an overview of the policy riders that are available, how future changes in the investment yield might affect a policy's performance, and selecting target premiums.
Case Management Memos
  These memos continue throughout the case. They are intended to keep the client informed about decisions already made, work to be done, and time expended and expected.
Application Completion
  When clients purchase new insurance, Katt & Company makes sure that the owner and beneficiary are correct and that such items as 1035 forms are properly handled.
Policy Reviews
  Once a case is completed, the clients' life insurance program is reviewed on a regular basis as approved by the client.

 

 

 


Katt & Company • 890 Treasure Island Drive • Mattawan, MI 49071
Phone: 269.372.3497 • Fax: 269.372.4681
Email: PKatt@PeterKatt.com