Dear Clients and Friends –
When faced with adversity, Winston Churchill said it well — if you are going through hell, keep going.
After six weeks of quarantine, we share everyone’s COVID-19 fatigue and can appreciate your reluctance to make financial moves until we have more clarity on what lies ahead.
With that in mind, we thought you might find this communicado on life insurance reviews helpful to answer questions or concerns that may be on your mind:
Am I adequately covered?
Times like these make us think about protecting what’s near and dear to us and everyone looks at life insurance differently.
If this question has been lingering and you want some professional guidance to figure our how much coverage is adequate for your individual, business, or estate planning needs, reach out and I would be happy to have a conversation.
Is my insurance carrier stable?
Volatile equity markets and low interest rates have created a challenging economic environment for financial service professionals and providers. Life insurance is a long term asset so using highly rated and stable carriers is vitally important.
Here is an informative white paper from ALIRT that examines the underlying investment portfolios of life insurance carriers in detail (learn more). It indicates that the life insurance industry is well capitalized to weather this crisis. If you would like snapshots or reports for specific carrier(s), please get in touch.
What are the benefits of a policy review?
Life insurance is the most poorly managed asset class. Clients buy it and then forget about it. Agents and brokers sell it, but because they are only compensated in the first year, move on to the next opportunity and often neglect their ongoing service responsibilities. Insurance and financial needs change over time.
If it has been a while since you reviewed your policies and your agent or broker is nowhere to be found, we can help. “Orphaned” policyholders we work with experience two recurring themes 1) their policies were never stress tested to manage expectations (read most policies are under-performing) and 2) clients are usually overpaying for their coverage because older policies cost more than what is available in today’s marketplace.
Here is a representative review we prepared for a prospective client that compares his existing to new policies in best and worst case scenarios. It indicates that he can lower his premium outlays and get more long term value with less risk. This review also unearthed a potential problem with a cash value loan that may trigger adverse tax consequences down the road (learn more).
We offer this service free of charge and our clients and their advisers will receive comprehensive reviews for their policies when this storm has blown over.
Any silver linings or planning opportunities?
While the future remains uncertain, our products and services add peace of mind and create better financial outcomes for our clients.
Lion Street recently published an excellent piece on silver linings during COVID-19 that summarizes where life insurance can enhance everyone’s financial security and how convenient it has become to acquire new coverage (learn more).
Please click on the links above, review the materials at your convenience and get in touch with questions or if you would like to learn more.
Stay positive, healthy and safe and keep going.
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