OUTSMART THE SALES PITCH: ELEVATE YOUR PRACTICE WITH INDEPENDENT LIFE INSURANCE REVIEWS

KACPA
3 days ago
4 min read

As a CPA professional, you are your clients’ most trusted advisor for tax, accounting, and financial matters. Yet, one area where many CPAs unintentionally leave clients vulnerable is with life insurance company products—including life insurance, annuities, disability insurance, and long-term care coverage.

These products are rarely purchased through careful research. Instead, they are typically sold and pushed by agents, brokers, and financial advisors who are highly trained in sales and objection-handling—but not fiduciary planning. Their motivations are tied to commissions, bonuses, and production awards, not your client’s best interests.

The Hidden Challenge Your Clients Face

If you type “best life insurance product” into Google, you’ll find millions of results filled with conflicting promises. In reality, most consumers are told by salespeople that they are getting the “best” product—when in fact, the “best” product is usually the one that pays the highest commission or is being most heavily promoted.

Bottom line:

Your clients do not win sales contests.
Your clients do not receive commission checks or sales bonuses.
Your clients must live with these products for the long term—often as a core part of their financial plan.

That’s why your role as a trusted CPA requires you to encourage a second independent opinion before your clients commit to any insurance product.

The Free-Look Period: The Consumer’s Only Defense

Every life insurance policy or annuity comes with a “free-look” period of 10–30 days. During this time, clients have the right to cancel or revise their policy. More importantly, it’s the perfect opportunity to obtain an independent Life Insurance Review (LIR) to verify whether the product truly meets their needs.

Unfortunately, this safeguard is often buried in the fine print, and agents are not required to highlight it verbally. Without proper guidance, many clients miss this one window to avoid being locked into a policy that may not be suitable—or may never perform as promised.

Why CPAs Must Lead, Not Follow

If you don’t guide your clients on insurance-related issues, someone else will. Many insurance sales professionals don’t just sell policies—they also present tax concepts and strategies (e.g., “tax-free retirement,” “tax-free income,” or “Life Insurance Retirement Plans (LIRPs)”).

To clients, this may sound like financial planning. In reality, it’s often a sales pitch for specific products. This can:

Undermine your authority as the client’s fiduciary.
Jeopardize your client relationships.
Cause clients to move their business elsewhere, believing they’re receiving “more value.”

By proactively promoting the need for independent Life Insurance Review, you:

Protect your clients from being misled.
Reinforce your position as their trusted fiduciary advisor.
Add value to your practice through consumer advocacy that salespeople cannot provide.

Why Work with a Licensed Life Insurance Analyst

A Life Insurance Review (LIR) should be performed by a licensed life insurance analyst—a rare professional license that carries fiduciary responsibility to act in the client’s best interest. Unlike agents or brokers, analysts are not motivated solely by commissions or product incentives.

Independent and fiduciary-level reviews of policies.
Expertise in tax and financial planning, often working alongside CPAs and enrolled agents.
Use of structured evaluation tools such as a policy performance checklist.
Ability to assess both new recommendations and existing policies to ensure they are performing as originally illustrated.

Your clients deserve to be served—not sold to. Encouraging them to get a Life Insurance Review ensures their interests—not sales incentives—come first.

FAQs About Life Insurance Review (LIR) for CPAs

Why should CPAs encourage Life Insurance Reviews?

Because insurance products directly affect tax planning, estate strategies, and retirement income. If policies underperform or are misaligned, the financial consequences can be significant.

What’s the difference between an agent and a licensed life insurance analyst?

Agents and brokers are sales professionals compensated through commissions. A licensed analyst is an independent fiduciary who provides objective policy reviews without product bias and is typically compensated by a fee. And yes, a licensed life insurance analyst can also act as an independent broker and, if appropriate, offer life insurance products.

How does the free-look period help clients?

It gives clients 10–30 days after delivery to cancel or revise a policy. This is the critical window of time to obtain an independent review before they are locked in long term.

Should existing policies also be reviewed?

Yes. Policies often underperform compared to original illustrations. A review ensures clients know whether their policy is on track—or needs adjustment.

How does promoting LIR benefit my CPA practice?

By guiding clients toward independent review, you protect them from being sold unsuitable products, strengthen your fiduciary role, and prevent other professionals from undermining your client relationships with sales-driven strategies.

Can CPAs partner with a licensed life insurance analyst agency to add these services?

Yes. Many licensed analyst agencies and brokerage firms allow CPAs to partner strategically, providing Life Insurance Review services as part of your practice. This collaboration not only strengthens your client offering but, in many cases, may also include revenue-sharing opportunities—creating additional value for both your clients and your practice.