Insurance Planning

The Importance of Conducting a Policy Review and the Potential Outcomes of a Policy Review

Life Insurance Policy Review

The importance of conducting a policy review

Life events can prompt changes in your insurance needs

  • Have you changed jobs, had children or grandchildren, purchased a new home, paid off your mortgage, gotten married or divorced, had a death in the family, or updated your estate plan recently?
  • Does your life insurance reflect that change?

The health of your policies can change

  • Have interest rates or the equity markets moved significantly since you purchased your policies?
  • Are they performing as originally expected?

The structure of your insurance should reflect your current situation

  • Do you know who the owner, payer and beneficiaries are on your policies?
  • Is that still what makes sense given your current family dynamics, your current goals and the tax law changes?

The amount and type of insurance you need changes with the stages of life

  • Did you originally buy your insurance to protect your growing family?
  • Is your salary/wealth the same as it was then?
  • Is family protection still the primary risk?
  • Are you starting to worry about retirement and long-term care?
  • Do you have a plan for how your wealth will be transferred to the next generation (or your favorite non-profit)?

The pricing and benefits offered in insurance contracts changes over time

  • Are your existing policies competitively priced?
  • Do they include all the benefits you will need going forward?
  • Do you want to look at the alternatives?

The potential outcomes of a policy review

  • Gain confidence that your current policies are financially sound and set up optimally to help meet your current and future needs.
  • Restructure your current policies owner, payer and beneficiary designations to help minimize the impact of income, gift and estate taxation and/or to reflect your current family dynamics.
  • Revise your current policy premiums and benefit utilization to try to optimize long-term performance.
  • Alter your current policies’ type or face amounts, or exchange them for new policies, to better meet your short and long term objectives or to deliver cost savings.
  • Buy additional insurance to supplement your current policies so that they can strive to ensure that your current and future goals are met.
This presentation presents an overview of estate planning. It is not intended to provide full disclosure. It is not intended to give tax or legal advice. Any comments about tax treatment simply reflect an understanding of current interpretations of tax laws as they relate to estate planning and life insurance. Tax laws are always subject to interpretation and possible changes in the future. It is recommended that you seek the counsel of your attorney, accountant, or other qualified tax advisor regarding estate and life insurance taxation as it applies to your particular situation. These pages depict certain estate planning options. This presentation simply shows the effect that the demonstrated option(s) may have on your estate and potential estate taxes, based on certain assumptions of the value, growth, and disposition of your estate, detailed in the presentation and provided by you. All references to the present or future value of death benefits and cash values of pre-existing life insurance policies are based on the information you have provided for purposes of this analysis. They should not be construed to be the actual present or future values of the death benefits or cash values available in those life insurance policies. For a detailed projection of policy values of a given life insurance policy, please contact the company that issued the policy(ies) in question.





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