Advisor Today > > August 1999

August 1999 Advisor Today Articles Online

Cover Story: Asset Allocation Thinking and Consulting About All That Money

by Jeffrey R. Kosnett, LAN Editor

Asset allocation is not a 15-minute subject. It is the subject of countless books, software programs, academic papers, Web sites, off-the-cuff commentaries, and, make no mistake, shoddy shortcuts. The Internet and financial magazines and newsletters are bursting with commentary that tells readers to be X percent in stocks, Y in bonds and Z in cash—a premise that suffers from the misconception that all investors are alike. Stockbrokers, insurance companies, mutual fund firms, financial planners and consultants try to differentiate investors by questionnaires and by installing on Web sites free, interactiveasset allocation screens. These are well-intentioned, but the questions that ask the user to describe his or her style are often vague or multiple choice, which limits the scope of the output.

Feature Story: A Case for Whole Life

by Richard L. Miller, CLU, CHFC

Variable life has been touted as the best life insurance product to use to build high cash values. However, Miller argues, over the long term, whole life is the better bet, as VL is actually a wolf in sheep's clothing: it's a buy term and invest the difference product, where one hopes that high growth rates in the separate accounts will cover the ever-increasing cost of insurance.

Cost of Doing Business: A Glossary of Insurance Terms

by Ron Hauenstein

Many times we encounter terminology in the arcane world of insurance lingo that we don't understand. Keep this guide close at hand so you won't be confused by the next big word or phrase that comes at you from the home office or advanced underwriting.

Digital Agent: Improving Input Capacity

By Edwin P. Morrow, CLU, ChFC, CFP, RFC

The most rapidly expanding technology for the personal business computer is the incorporation of the auditory senses. All new computers now come with a sound card or chips to interpret digital data and convert it into sound waves. The actual output device may be speakers or a headset. However, if you are planning to make significant authoring use of a computer, then you will probably be connecting a headset with a microphone for voice input.

Finger Tips: Dealing with Disability Claim Denial

by Larry Schneider

Over the last several years, the ratio of subjective claims (mental/nervous, soft tissue [back], chronic fatigue syndrome, etc.) to non-subjective claims (broken arm, heart attack, etc.) has increased dramatically, to the point where more than a few disability insurers are no longer operating in the black. Most DI companies are finding that claim outgo is exceeding their income, from both premiums and return on investment, by about 12 to 15 percent.

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