Trust and Estates Magazine published a study that shows the following:

  • 92% of policies can be restructured to reduce costs or increase benefit
  • 94% of existing policies were sold with maximum commission loads
  • 71% of trustees have never performed an annual policy review
  • 84% of trustees have no procedures in place for due care
  • 78% of policy owners/trustees report they have no active servicing agent

The life insurance industry has almost certainly changed since you bought your last policy. New products have been developed and prices are falling, yet many policies are still underperforming. Meanwhile, as your policy continues along the same path year after year, your goals may now be different. The old “buy it and forget it” mentality no longer applies in today’s ever changing and competitive economic environment.

Furthermore, the annual statements supporting today’s life insurance policy management system do not sufficiently analyze the future performance of a life insurance policy. The information provided (cash value, premium and death benefit) does not fully address the issues that can impact the policy’s long-term value, specifically whether the policy will lapse prior to life expectancy or whether it is overfunded.

This data confirms that it is essential to work with a firm that has the insight and perspective to service policies effectively.

Cypress Strategies provides an objective, fiduciary quality assessment of your life insurance portfolio. We will help you determine if your insurance still meets your specific planning needs and whether your products are still competitively priced. Our reviews are provided at no charge.

What Is Included?

  • A current needs assessment
  • Detailed policy summary including a review of policy ownership and product type
  • In-force re-projections of future premiums, cash values and death benefits based on actual experience and current assumptions
  • A credible baseline should be established. Often the existing policy can be restructured or altered to make it more efficient.
  • Reevaluate the underwriting risk class of the insured based on current medical information. A rate class improvement for existing policies is often available.
  • Assessment of policy charges and assumptions and their impact on performance.
  • Evaluation of the insurance company’s current financial ratings and outlook.
  • Recommendations to bring current policies back in line with initial expectations.
  • Assessment of funding strategies (payment periods, loans, split dollar, etc)
  • Review restructuring strategies such as consolidations, 1035 (tax free) exchanges, face amount decreases, or sale of policy to third party (when coverage is no longer needed).
  • A complete Market Study to determine if the current insurance products are competitively priced.
  • New standard for Due Care – In-force policy reviews annually, complete market study every 3-5 years.

This thorough process produces a clear and objective assessment of your insurance and recommendations for future action.