Life expectancy in America continues to increase due to improved medical science, and many older insurance policies are not keeping up. Older policies can be overpriced and inefficient compared to current options. Our experience is that about 80% of life insurance portfolios are not properly reviewed and managed after the initial purchase and become unsustainable before death or prematurely cancelled. The idea of locking in lower costs no longer holds true. A comprehensive life insurance review can help provide solutions while options still exist.
Many of our clients have made their insurance more efficient without any additional risk once their policies were reviewed. Here are some examples:
- A 52-year-old individual was able to reduce his monthly premium from $10,000 to $8,000 and keep his $4 million face value, plus add a $1.5 million long term care rider.
- Two business partners were able to not only reduce their premiums by 45% but also keep the premium difference in the business.
- An individual in their mid-60’s was able to increase their policy by $250,000 and add a $750,000 long term care rider while keeping their premium the same.
These are just some of the cases where simple adjustments allowed better asset protection at an equal or reduced cost. Additional issues to consider when reviewing your life insurance policy:
- Make sure you are adequately providing for your family and business
- Coordinate your life insurance planning with your estate planning
- Confirm that your policies will last as long as you do and at what cost
- Consider selling any unnecessary policies
- Resolve any policy performance issues before it is too late to fix
- Assess any major life events, such as marriage, birth of a child, new job, divorce, etc. that could require the need for insurance and tax-wise ownership adjustments
- Examine business transitions (changes in value, new business partner, buy-sell, etc.) to assure your objectives are being accomplished
- Evaluate how insurance industry changes may have positively or negatively affected your insurance portfolio and future options. Are you seeing lower policy expenses, lower credit rates, higher cost of insurance charges or the sale of your life insurance company’s policies to non-insurance corporations? These changes can mean opportunity or obstacles that need attention.
Kelleher & Buckley, LLC works with experienced and knowledgeable insurance professionals who can provide you with an easy and complimentary life insurance portfolio review. This review can help ensure that you have effective and appropriate coverage to meet your specific needs.
Contact Andrew Kelleher, David Buckley, Bob Holland, Linda Fine or any of our 25+ attorneys at (847) 382-9130 or contact us through our website.