One of the most important functions we can perform is to monitor whether or not our client’s plan is still on track. Life insurance, like any financial asset, needs to be reviewed from time to time to make sure it is still meeting the client’s needs.
NOT ALL REVIEWS ARE CREATED EQUALLY
Policy reviews come in all different sizes, and our insurance specialists are experts in examining policies for consumers, businesses and estates. A thorough analysis of existing insurance plans can help prevent gaps in coverage, and also provides an opportunity to build on policies already in place.
CONSUMERS
When considering a policy review for an individual it’s important to address several issues that may affect their coverage:
Is the amount of death benefit appropriate to their current lifestyle?
Has the client had any significant life changes such as marriage, children, retirement, etc.?
Is the premium stable or changing, and still within budget?
GBS will help you discover ways to better serve your clients and make sure their coverage is performing as desired.
BUSINESSES
Business policies require an acute attention to detail in order to protect owners and their companies. When undertaking a policy review for a business, things to keep in mind are:
Is the death benefit in line with the market value of the business?
Have key-employees joined or left the firm?
Is the insurance portfolio prepared for any key-mergers, acquisitions, or owner’s retirement?
Are key-person plans compliant with IRC 101(J)?
ESTATES
Periodic reviews of Trust Owned Life Insurance (TOLI) are necessary to ensure estate plans are on track to deliver. Estate policy reviews are designed to keep policies from lapsing, thereby mitigating the liability of trustees.
AN OUNCE OF PREVENTION
We recommend regular policy reviews to make sure the plan is performing as originally intended, but there are other great reasons:
Keep policies inforce, and make sure families are covered.
Reduce liability in your practice.
Generate new sales where appropriate.
Policy Reviews are an effective way to market your services and expand your list of trusted advisors. With GBS as your back office, providing the analysis and recommendations, you’ll be well-positioned to strengthen relationships with CPAs, attorneys, trustees and other valuable referral sources.