Insurance Review. Valued Client

Transcription

1 Insurance Review Planning Process For A Valued Client Page 1 of 7

2 WHY A LIFE INSURANCE REVIEW? There are numerous reasons why a life insurance policy owner should review their coverage on a regular basis. Often there are legitimate planning issues changes in financial or personal situations for making changes in life insurance coverage. In addition, improvements in available life insurance coverage offer the real possibility that clients can improve their coverage without any additional outlays. The major reasons for reviewing life insurance coverage include the following: Many life contracts do not meet current needs due to life or career changes. Beneficiary designations many times are out-of-date. Many older life contracts use higher mortality rates than current policies and coverage may not remain in force based on reasonable projections. Many new products have features that were not available in the past (i.e. secondary guarantees in Universal Life Products, Long-Term Care Riders etc.). Opportunity to lower costs through new, more lenient underwriting. Opportunity to increase coverage and/or guarantees through improved product offerings. Outstanding policy loans may cause a policy to lapse. Life insurance, if not owned properly, can increase estate taxes in larger estates. Existing term policies may be approaching a premium increase or be beyond their conversion point. Advancing age and deteriorating health can prevent an insured from taking advantage of more cost effective products if needlessly delayed.. Page 2 of 7

3 LIFE INSURANCE REVIEW CHECKLIST Present Insurance Coverage: Do you need to increase the current coverage? Do you understand all the benefits of the insurance you currently own? Adequate Coverage To: Pay off your mortgage? Provide future salary replacement, allowing your family adequate protection if the insured dies prematurely? Is the insurance coverage on your spouse/partner adequate? Have you made plans for your children s education? Will those education plans be fulfilled whether you live or die? Changes: Since Your Last Review, Have You Moved? Changed marital status? Changed jobs? Had a child? Changes in your overall health? Acquired new or more group life insurance? Started or expanded a business? Taken out or paid off a loan? Retired? Would You Like To: Change beneficiary designation? Change your premium payment schedule? Change your dividend option? Convert your term insurance? Lower insurance costs? Increase death benefit coverage? Improve guarantees? Policies: Are the names and address of the owners, beneficiaries and insured correct? Is your mailing address correct? Is each birth date accurate? Is a second beneficiary named on each policy? Page 3 of 7

4 LIFE INSURANCE REVIEW ACTION PLAN The following steps outline the process of policy review: Action to be Completed 1. Gather detailed policy information (preferably including an in-force ledger showing projected and guaranteed policy values to maturity, see letter attached). 2. Summarize and analyze existing policy structure ownership and beneficiary arrangements, policy type and performance, etc. Review Life Insurance Checklist. 3. If the potential for significant improvement is evident, apply for new coverage. If existing coverage is performing adequately, make any necessary changes to beneficiary or ownership arrangements. 4. Make a final review of overall strategy prior to placement of new coverage and termination of prior coverage. Done Page 4 of 7

5 LIFE INSURANCE POLICY DATA Date of Birth(s): Insured(s): Date: *Please use this form or a copy of a Quarterly Statement Abbot Road Suite B, East Lansing, MI Phone: Fax: Riverside Drive, Trenton, MI Phone: Fax: Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC Page 5 of 7

6 EXAMPLE LETTER FOR VARIABLE INSURANCE Date Insurance Company Address City, ST zip RE: Insured Name Policy #xxxxxxxx To Whom It May Concern: Please send me in force projections for the above referenced policy. Please show policy values based on % gross rate of return, current expenses and continued payment of the premium. Also, please show the required annual premium to continue coverage to age 100 with the cash value at maturity of $. Please use % gross rate of return and current expense charges for this projection. Please send this to my attention. Thank you, Policy Owner Page 6 of 7

7 EXAMPLE LETTER FOR FIXED INSURANCE Date Insurance Company Address City, ST zip RE: Insured Name Policy #xxxxxxxx To Whom It May Concern: Please send me in force projection for the above referenced policy. Please show policy values based on current interest rates, expenses and continued payment of the premium. Also, please show the required premium to continue coverage to age 100 with the cash value at maturity of $_. Please use current interest rates and expense charges for this projection. Lastly, please show how long the policy lasts based on guaranteed interest rates, expenses and continued payment of the premium. Please send this to my attention. Thank you, Policy Owner Page 7 of 7