- Many existing Life Insurance policies can be improved upon. Because of lower interest rates, lack of long term contractual guarantees, improved mortality pricing, and even carrier instability, a POLICY AUDIT should routinely be performed on all your client’s permanent and term policies.
- Nearly every modern Universal Life plan today has guaranteed premiums and death benefit options to Age 100 and beyond. Because of these facts, it may be in the Policyholder’s best interest to complete a Policy Audit and Review Form to obtain a comparison to modern-day Universal Life plans.
How to Complete an Audit
- First, obtain a recent annual policy statement and an in-force illustration on the current policy and complete the Audit Form with this information. Special Risk’s Policy Analysis Department will initiate the process of comparing the existing policy(s) to newer, more competitive products.
- Taking current and past medical history into consideration, we will preliminarily complete a spreadsheet analysis to demonstrate which carriers may provide the best improvement to the current insurance policy(s).
- Despite changes in medical histories, it is routinely found that many policies can be dramatically improved in both pricing and guarantees. This is not only because of the availability today of superior UL products, but because of special impaired risk underwriting and Table Shaving programs available at many of our top rated carriers.
- In addition to the traditional 1035 Exchange Options, supplemental leverage is often gained through a combination sale (Life Settlement) of the existing policy. Either way, if it is determined that an improvement to a current policy can be made, the Financial Consultant or Broker can meet with the client to make a final determination whether it is in their best
interest replace the existing coverage.
Click here to download a Policy Audit and Review Form or fill out Online Form now.