3 Reasons to Do A Policy Analysis/Review

That You Likely Have Never Been Told

1. Almost 2 in 5 policies are “orphaned”. This means they have no one watching over their performance. This is dangerous because life insurance is an asset that needs managing, just like any other asset. Without proper management a policy could lapse, wiping away thousands of dollars of cash value and possibly millions in coverage for loved ones.


2. 1 in 5 policies is on “automatic premium loan”.
What is that? That’s a feature ostensibly designed to be helpful but can inadvertently cause a taxable event for your client. If a client misses a premium payment on a policy with the automatic premium loan, it will kick in taking a loan for the premium due from the cash value. This is fine until the policy lapses and the entire loan amount becomes taxable to the client. OUCH!


3.
The potential liability that the Policy is either underwater or due to lapse: studies show as many as 45% of policies are underperforming or scheduled to lapse. This could be a huge problem for your clients and they don’t even know.

 

But don’t fret. We can help you and your clients. However, the key is to act NOW vs. waiting. A troubled policy doesn’t get better, it only gets worse. Give us a call to discuss how we can help analyze your client’s coverage to ensure they’re on solid ground.

Are you ready to discuss solutions and re-engage your clients? Fill out our contact form.

Mercury Financial Group does not provide tax or legal advice. All clients are urged to seek counsel on such matters.