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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

The author is paid for product endorsements and has an ownership or other financial interest in the businesses related to the topics covered.

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Life insurance purchase analysis

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email

Q: Can you do an independent comparison of three different life insurance policies that we are considering for our company's CEO?

A: Yes but you should probably save the money by skipping this process. Comparative analysis of insurance policy projections have no meaningful value because: a) the projections compare different internal accounting procedures that are not directly comparable, and b) they are based on assumptions that will almost certainly not be true. Any deviation in actual economic conditions will affect the different policies in varying degrees, thereby throwing off the results of the analysis. Best purchase decisions are usually obtained by relying on your own common sense and instincts. Despite this comment, if you need the written analysis for due diligence or third party documentation purposes, I will be happy to prepare the report.


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