Our clients, as part of the overall planning process, have their life insurance policies reviewed.
Many find that their beneficiary designations are incorrectly prepared so that the proceeds may go to the wrong person as an unintended consequence. Frequently, we find that the ownership of the policy is structured wrong, causing problems with estate taxes and probate.
Another common problem we find when reviewing life insurance policies is that some will lapse or cease to exist in the future. This means that the policy is scheduled to run out of cash surrender value and death benefit at some point in the future, perhaps before death.
We have found that many clients aren’t aware of these problems for a variety of reasons. Generally, they happen because they no longer have an agent or because the agent doesn’t know or care.
It is not uncommon for us to be able to significantly increase the amount of coverage or reduce premiums for the same coverage.
The cost of insurance has dropped recently, making insurance reviews fertile ground for significant enhancements to retirement and estate plans. Some retirees can even access older policies for an income stream.