The "Reasons Why" communication is an industry requirement to help clients confirm their understanding of what they purchased, its intended objective and how it meets their needs. 

These brief, easy-to-understand letters (or emails) helps protect you and your business, builds trust with your clients and is an important aspect of sales suitability documentation.

Please feel free to modify these sample Reasons Why letters to suit the sale you made for the appropriate product and recommendation at point of sale.  RW communications are required to be dated and delivered at time of sale for investment plans i.e. Segregated Funds, and by no later than policy delivery for all other life insurance products including CI &/or DI.

IMPORTANT:  If the completed Needs Analysis indicates a different insurance amount required than the submitted application, it is mandatory to explain the difference in your Reasons Why communication.  Refer to sample below to include in your communication: 

[Explain why any needs that were identified aren’t fully addressed at this time and/or note other potential needs that should be discussed in the future. When the insurance amount determined on the insurance Needs Analysis is different than the amount applied for, explain the difference. Mention a follow-up plan.]

 The following seven bullets make up the required elements of a “reasons why” letter:

• Identify the carrier, the product sold and type of insurance it represents
• A plain language summary of the client circumstances that led to the recommendation
• A plain language description of the needs  addressed by the recommendation
• If the recommendation does not fully meet the client need, a plain language explanation of the difference needs to be included
• If the recommendation does not address certain needs , a follow up plan to address in the future
• A plain language explanation on any fee structures chosen (where there was choice)
• Call to action for the client to ask any questions if anything is unclear or is not correct

Click on the links to download the Word template and view sample Reasons Why communications by plan type.