Life Insurance Tools


The questions that most individuals ask on insurance relate to adequacy and cost of coverages. Other questions that should be asked relate to the types of coverages and whether or not there are alternative coverages that better suit the needs of the insured. Our advisors address all of these variables as part of their Insurance Audit process. During this audit process it may be determined that the amount of insurance is acceptable but there may be less expensive ways to provide the same coverage. This is typically the case if a policy has been in place for years as today’s underwriting standards are different from those years ago. There are also new features in policies today that were not in place years ago which may provide the opportunity for enhanced protection for such events as catastrophic injuries and long -term care.

The first step to a Life Insurance Audit is a review of the purpose, insurable need, amount, and type of policy in place. Discussion with one of our Certified Financial Planner® professionals will help uncover this information, along with the objectives of a client’s insurance portfolio.

Next is a review of the numbers behind the insurance policy and the most recent annual report. These documents will help our advisors understand what assumptions went into issuing the policy and what risks are assumed by the insured.

The next step is to request an “in-force ledger” from the issuing company. This shows actual performance of the policy (i.e. given actual interest rates, dividends, or market returns) rather than relying on illustrated hypothetical returns assumed at the time the policy was issued.

Reviewing this information with clients helps everyone to understand the objectives behind the coverage and type of policy in place. The last step is to research alternative solutions if needed, presenting clients with solutions to potentially reduce cost, possibly increasing coverage at the same cost, extract cash value from policies for personal use, etc.

Click here to schedule your no cost, no obligation insurance audit.