LIFE INSURANCE PORTFOLIO ANALYSIS

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1 LIFE INSURANCE PORTFOLIO ANALYSIS ADVISORS GUIDE gskadvisors.com

2 The Value of a Life Insurance Portfolio Analysis Your client s life insurance policy is one of the most valuable assets they own. Most life insurance policies are not actively managed as an asset. As a part of setting financial goals, it is critical to ensure insurance coverage and policy provisions keep pace with the changes in your clients lives. A GSK Insurance Strategists (GSK) Life Insurance Portfolio Analysis gives you an active management process for life insurance. GSK as your Strategic Partner Having an independent third party perform a Life Insurance Portfolio Analysis demonstrates the depth of your team. An objective, consultative analysis brings clarity and puts your client in a position to make an informed decision. Providing Valuable Insight: Determine if existing policies are still meeting needs Make appropriate funding adjustments, where applicable Consider possible improvements in underwriting class or mortality changes of life insurance policies are underperforming, 65 % priced incorrectly or are inappropriate. Present alternatives that might better meet needs: Policies with secondary guarantees Clarify the provisions and benefits within the existing policy Extended maturity options More appropriate loan provisions Common Triggers Include: Increased or decreased insurance needs Policy charges that reflect current mortality tables Best underwriting classes or mortality charges Review any new riders available Changes in family and/or business situation Declines in interest and dividends, or volatile investment returns Changes in health improved or deteriorated Policy owner and/or beneficiary designation is no longer accurate Performance affected by loans, withdrawals or other changes Increasing premiums making conversions more expensive, if insurance needs continue A Life Insurance Portfolio Analysis not only helps your clients modify, adjust or reaffirm their life insurance portfolio, but also reinforces their confidence in you and strengthens your relationships with trustees.

3 LIFE INSURANCE IN 1990 LIFE INSURANCE TODAY Key Areas of Comparison Plus Mortality Table 1958 or Non-Smoker Smoker Plus Non-Smoker=Ciger, Pipe, Chew Interest Rates - Current 6-10% 3-6% Interest Rates - Guaranteed 4% 2-3% Smoker=Cigarettes Type of Products Available Term Whole Life All Products of 1990 Equity Indexed UL with and without Guarantee Guaranteed UL Underwriting Variable UL with and without Guarantee EXAMPLE 1 EXAMPLE 2 Requirements Information / Technology Finger Stick Limited, slow to become available Full Fluids Better understanding, internet availability with high degree of free-flowing collaboration and innovation Female, age 57 $1 million Whole Life with term blend not guaranteed Originally $20,000 projected premium payable for 10 years Policy still requires two more additional payments Male, age 72 Universal Life assumed 9% credit rate $35,000 projected premium payable for 8 years Policy projected to lapse in 15 years Non-Smoker Smoker Plus Plus RESULTS 1990 Highly Rated History of cancer Today New Guaranteed policy requires no additional premium RESULTS 1990 Due to blindness Today Non-Smoker New policy guarantees coverage for 20 years Non-Smoker=Ciger, Pipe, Chew Smoker=Cigarettes

4 Case Studies Eliminate Premium & Guarantee Coverage Insureds Male, age 81 and female, age 80 Underwriting Factors Male, issued Table C Female, issued Table A 11-year-old Whole Life policy Current Policy Facts Annual policy premium of $65,000 Premium required for additional 13 years Analysis Results Provided Non-Smoker on the female and Uninsurable on the male Clients were provided with two options and chose option 2 Product Improvement Option 1 Maintain current annual premium of $65,000 for 13 years. In year 14, utilize paid-up additions to pay for premiums. Option 2 Move existing coverage, maintain the same benefit with no future premiums and guarantee coverage to age 120. LIFE INSURANCE PORTFOLIO ANALYSIS PROCESS Analyze policy performance and future projections relative to original projections Assess medical risks to determine whether mortality charges and policy expenses are in line with the most up-to-date medical underwriting classifications available Renegotiate with carriers to obtain the most competitive offers available in the market today Insured Male, age 75 Underwriting Factors History of Hypertension and CAD Current Policy Facts Policy face amount of $4,250,000 Policy relies heavily on invested portfolio Analysis Results Provided Non-Smoker on the female and Uninsurable on the male Clients were provided with two options and chose option 2 Option 1 Maintain current annual premium of $65,000 for 13 years. In year 14, utilize paid-up additions to pay for premiums. Option 2 Move existing coverage, maintain the same benefit with no future premiums and guarantee coverage to age 120. Review product and planning tactics to ensure they are aligned with current goals and objectives Determine financial stability of policy carrier Evaluate results to generate a recommendation: Maintain or consider other options

5 GSK Insurance Strategists, LLC provides comprehensive financial and insurance solutions for high net worth individuals, business owners and corporate executives. We offer Life Insurance, Disability Insurance and Long Term Care products from over 50 carriers, providing clients with optimal pricing with the most stable and reputable carriers in the industry. Services include Strategic Insurance Solutions, Life Insurance Portfolio Analysis, Asset Protection, Business Insurance Solutions and Financial Planning. Our client focused approach enables us to provide the highest level of service, while always placing client needs and goals first. We offer fee and/or commission service options that are individually tailored to provide customized solutions. Coral Gables 2121 Ponce De Leon Blvd. 11th Floor Coral Gables, FL Hollywood 4000 Hollywood Blvd. Suite 215 South Hollywood, FL Fort Lauderdale 2400 E. Commercial Blvd. Suite 517 Fort Lauderdale, FL Boca Raton 2255 Glades Rd. Suite 324A Boca Raton, FL gskadvisors.com