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Katt & Company is a national fee-only life insurance advising firm. The June 2002 Forbes magazine, and a July 16, 2003 Wall Street Journal article, name Peter Katt as one of only four nationally recognized advisors. The Forbes article states that, "…advisers are well worth the money… These savants are working for no one but you…" For references please contact us. Let Me Join You in Saving Senior Clients $1,000,000 (Each) "Advisors need to take more interest and provide assistance to clients with respect to their life insurance. This communicates that you are there to help them and may encourage clients to engage your services to oversee existing policies and confer when fiascos are being proposed." During the past several months I have discussed three similar situations with client advisors that caused 80-somethings to each lose around $1,000,000 by being sold life insurance they didn't need and couldn't afford. The losses are policy premiums less the surrender value for the terminated policies. In each case salespersons from national brokerage firms convinced elderly customers to buy large amounts of life insurance ($13,500,000, $7,000,000 and $5,000,000) with the premiums directly or indirectly financed by the firm using the clients' investment accounts as collateral. It really isn't the case that they were sold too much life insurance. They didn't need any additional life insurance. The financed premiums were huge and not affordable except for the financing from investments. The explanations for why life insurance was needed have been spotty. No presentations or illustrations survived the sales encounters. Frankly these seniors don't recall why they made the purchases. In two of the cases the salespersons attempted to recoup some of the damage by trying to sell the policies in the life settlement market. In one case there was no market and in the other the sales price was a fraction of premiums paid. In any event, the losses were $1,000,000 each. Advisors need to take more interest and provide
assistance to clients with respect to their life insurance. This communicates
that you are there to help them and may encourage clients to engage your
services to oversee existing policies and confer when fiascos are being
proposed. This might have saved these seniors from incurring such losses.
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