medium · Certified Financial Planner Risk Management
Applying Rank 1 (Duty of Loyalty) and Rank 6 (Cost and Reversibility) of the Hierarchy, a Hartwell household member is offered a group life policy for free and a private policy with a sales commission. Both provide identical coverage.
Which is the right recommendation?
- The group policy, but only after first evaluating a variable annuity for the same goal.
- The group policy; it satisfies Rank 6 by exhausting free options before purchased ones.
- The private policy; it provides more flexibility and portability for the future.
- Both are equally valid; the choice depends on the client's preference for insurers.
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