Comprehensive Life Insurance Audit

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2 Over the past several years we have seen a dramatic change in the economics that affect the life insurance industry. These economic conditions and other factors have mandated the review of life insurance portfolios.

3 Sustained low interest rate environment New product development Underwriting improvements Insurance company acquisitions Companies being bought by private equity groups

4 By completing a comprehensive audit we can determine whether your clients life insurance polices are performing to the standards they expect, and give you a clear vision of how they will perform in the future. This will let you and the client know if they will get the outcome they want!

5 We will also give you our opinion of the overall competitiveness of their current insurance policies and if there are viable alternatives that could possibly: Extend guarantees Lower premiums Increase death benefits for same premium Enhance their planning with living benefits enable them to be the beneficiary on THEIR own policy

6 Benefits For You The Advisor Increase profitability Also earn production credits at United Planners for all FIXED business Enhance client relationships Create barrier to entry to competition Diversify your revenue streams Enhance value of your practice Increased client retention Uncover additional objectives more planning opportunities Bridge to next generation Increase AUM Additional client introductions Increase profitability

7 The audit is free and without obligation. This service is vital in ensuring that one of the cornerstones of your clients financial future is in alignment with the outcomes they want.

8 The following objectives will be achieved! 1) Determine the over-all health of each of your clients current insurance policies. 2) Determine whether the existing insurance portfolio is meeting your clients needs and expectations

9 3) Determine whether there should be any changes or modifications to the existing portfolio or to a specific policy. 4) Determine if any of the policies are in jeopardy of lapsing any time in the future. 5) Determine if a new policy or policies would offer better a better outcome.

10 6) Determine if there has been any changes, whether personal, business, or estate, that require attention, including beneficiaries. 7) This valuable service will give you a detailed analysis, peace of mind, and a clearer vision into the future. 8) There is even the potential to help clients who are older and/or in poor health.

11 What we need from you! 1) A list of all life insurance policies for review 2) Most recent annual statements 3) Signed letter to obtain in-force illustrations 4) Copies of insurance illustrations that were provided at the time of purchase (if available) 5) Basic information of current health 6) An overall understanding of what is important to the client. 7) We have a single page document that summarizes this information.

12 The insurance audit provides great value to your client. It provides them clarity and certainty and allows them to make an informed decision. We have learned over the past 15 years of providing insurance audits that approximately 70% of the time there are issues that must be addressed and clients are unaware of these issues.

13 Summary The insurance audit process is the easiest and most successful way to introduce the life insurance discussion to your clients. The insurance audit process provides clarity and certainty and is viewed an exceptional service by clients. As a United Planner advisor we highly recommend you work with your C.O.R.E relationship manager to train your firm on the value and benefits of the insurance audit process.

14 Next Steps Become comfortable with the audit process audit your own policy. Become confident in the conversation we have the language for you Help your partners and other centers of influence to recognize the value and benefits of mastering the audit process. we have letters for you. Put an action plan in place to identify opportunities within your firm.

15 Examples Mary / 53 / $250K whole life / $37K CSV / Paying $3200 annually Wanted DB for daughter and granddaughter leave a legacy Same $250K DB guaranteed to her age 120 = only $1600 a year saved her $1600 annually / 50% Same premium paying now = $504K of death benefit guaranteed to her age 120 gave her a 102% increase in benefits. Advisor made = $2400 John 72 & Sara 70 / $15MM of insurance in insurance trust / $1.75M CSV / Three policies paying $240K annually Keep policies for wealth transfer planning estate taxes Got notice COI increasing on two of three policies Same $15MM of DB guaranteed to her age 120 = only $218K 9% savings Advisor made = $100K

16 Examples John / 68 / $1MM policy / $120K in CSV / wanted to stop paying premiums, Saw no need in insurance was going to cash out and buy CD Showed him Money Guard gave him $290K of LTC benefits Gave his heirs $160K if he died at age 85 Benefits above both income tax free He retained access to CSV if situation changed later Advisor made = $6K Dave, 74, a business owner, retiring due to declining health. Had a $1MM term life policy as a key-man policy - $0 cash value, $25K annual premiums 12 years left on term. He was going to simply let lapse he thought no longer needed and therefore worthless Put out to competitive bid after finding his health assessment was 10 years median life expectancy $175K offer made to him on the secondary market added to the buyout offer!

17 Questions???