|
 |
| Life Insurance - Performance Evaluation |
 Performance Evaluation
What benefit would my client get from a Life Insurance Policy Checkup?
Many people were sold a life insurance policy years ago by computer illustrations showing interest rates much higher than today's rates. The premium established at that time was predicated on interest rates staying at least that high forever.
Falling interest rates, insurance company mergers, increases in insurance or mortality costs can contribute to a policy significantly under performing what was shown at time of the insurance purchase. many people mistakenly feel that as long as they pay the premium, their life insurance policy can never lapse. There are hundreds of thousands of people who have had their policies lapse even though they never missed a premium.
A Life Insurance Policy Checkup will show you if:
- Your policy will lapse even paying the current premium and what age it is projected to lapse.
- Your policy is projected to lapse and if so, what premium should be paid in the future to avoid a lapse in coverage.
- Your policy is projected to carry to age 100 but the guaranteed features of the policy could result in an early lapse and loss of insurance.
- Your policy is doing fine and how soon can you stop paying premiums while maintaining the current death benefit for the rest of your life.
- Your policy could avoid lapsing by reducing the death benefit or increasing premiums and if there are better alternatives available.
 Frequently Asked Questions
Q. I have stopped paying premiums because I was told my policy is "paid up". Would I benefit from a Life Insurance Policy Checkup?
A. Many people mistakenly believe their policy is "paid up" because an insurance agent has shown them an illustration where no more premiums are necessary to keep the policy in force. Unfortunately these illustrations are projections from the insurance company based on current interest rates and costs. A policy is not "paid up" unless, under GUARANTEED provisions of the contract, no more premium is necessary to maintain the current insurance coverage. Lower interest rates have negatively affected all universal, whole and variable life policies in-force today so more than likely your policy is NOT "paid up". A Life Insurance Policy Checkup will provide you with the security of knowing for sure.
Q. What other factors, other than insurance rates, can negatively impact my policy?
A. While falling interest rates play a large role in the performance of your life policy, so can other contractual provisions of your policy. Just as important is the mortality costs associated with the policy. mortality cost is the pure insurance or "term" component of a cash value policy. However, the insurance company has both a projected mortality costs scale and a much higher guaranteed insurance costs scale in your contract. The difference between the projected and guaranteed costs can vary greatly and could have a tremendous influence on whether your policy could lapse. A Life Insurance Policy Checkup can show you the effect of this difference on your policy's performance.
Survey says that 87% of existing life policies could benefit from a Life Insurance Policy Checkup.
A recent life insurance publication article wrote about a survey done on hundreds of existing life insurance policies. The survey concluded that "...as high as 87% of existing life insurance policies surveyed could be restructured to provide either a 40% increase in death benefit or a 40% decrease in premium.
Because of client's concern of guarantees within a life insurance policy, companies have developed "No-Lapse" guaranteed policies offering the same guaranteed death benfits of whole life at less than one-half the premium. The policies are not designed to build a lot of cash, rather the design is to provide the insured with the most guaranteed death benefit at the lowest guaranteed premium.
These new policies are offered by some of the largest life insurance companies in the world. You might be able to increase your current death benefit by 40%, 60% or even double the coverage guaranteed with no more premiums. Conversely, a Life Insurance Policy Checkup might allow you to keep the same death benefit but cut your premium in half.
Contact us today to discuss how a Life Insurance Policy Checkup could help your client.
Recent Actual Case History
We can illustrate the benefits of a Life Insurance Policy Checkup with a recent case study done for a 54 year old female.
Current Situation
- Rated Standard Non-tobacco
- $132,000 guaranteed death benefit to age 100
- $2,000 annual premium
After Life Insurance Policy Checkup
- Rated PREFERRED Non-tobacco
- $454,691 GUARANTEED death benefit to age 100 (244% improvement)
- Same $2,000 premium
Your results may vary from the above, based on many factors and may not produce the dramatic increase in benefit noted in our case study above. However, most people will be able to see appreciable benefits from a Life Insurance Policy Checkup including the peace of mind of having the current coverage analyzed to see if it's performing up to expectations and achiving your objectives.
Click here for a more detailed sample Life Insurance Policy Checkup.
You can get more information on Life Insurance Policy Checkups by clicking on the following links:
|
|
|
|
|
Facebook 
Twitter
