Family
An Advisor’s Guide to the
Life Insurance Policy Review
“Protecting Tomorrow’s Generation; Today”
Why perform a Life Insurance Policy Review for your clients?
It is critical to ensure your clients’ life insurance policies are still answering their
changing needs and concern which is why it is necesssary to have periodic reviews
with your clients – to look out for their best interests. Our Life Insurance Policy
Review programs help you demonstrate the value you offer to your clients.
Many of your clients don’t realize their life insurance needs may have changed
since they first purchased this important benefit. As a part of setting financial
goals, it is critical to ensure your client’s life insurance coverage and policy
provisions keep pace with their changing lives. Do your client’s life insurance
choices still make sense?
65% - More than 65% of Life Insurance Policy Reviews performed
by us reveal the potential for improvement
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Common triggers to perform a review include:
 The need for life insurance increases or decreases
 Family or business situations have changed
 Interest (UL), dividends (Permanent whole life) or investment returns (VUL)
have declined
 The insured’s health has improved, offering opportunties for improved
underwriting
 The insured’s health has deteriorated, enforcing the importance of the existing
policy remaining inforce
 The policy is more than four years old
 Loans, withdrawals or other policy changes could affect policy performance.
 Premiums on term insurance increase with age, making conversion to or
purchase of a permanent policy more expensive if the insurance need
continues.
 New enhancements with life insurance products provide “living benefit” riders
that were not available at the original time of purchase.
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Good for your client and good for you
Performing a Life Insurance Policy Review demonstrates your commitment to
your clients and gives you a deeper understanding of their needs. An objective,
consultive analysis brings clarity and gives your clients the transparency they
deserve.
A Life Insurance Policy Review:

Reviews the current situation to fully understand life insurance needs.

Determines if existing policies are still meeting your client’s needs and if applicable,
identifies needs for funding adjustments that may be more appropriate for your client’s
current situation.

Considers any possible improvements in underwriting class or mortality changes to
ensure proper policy expense management.

Helps to clarify the provisions and benefits within the existing policy and also identifies
any new benefits that may be beneficial to your clients.

Considers alternatives that might better meet needs such as:
 Policies with secondary guarantees
 Extended maturity options
 Better loan provisions
 Lower policy charges

Reviews any new riders that might be available.

Helps you build stronger relationships with your clients.
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Your clients are not the only ones who will benefit from the Life Insurance Policy Review
program. This not only helps your clients modify, adjust and reaffirm their life insurance
portfolio – it also reinforces their confidence in you. In addition, you will strengthen
relationships with trustees and it will also help you differentiate yourself from other advisors,
gain referrals and develop relationships with tax attorneys, CPA’s and other professionals.
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 Less expensive underwriting classes or mortality charges
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Life Insurance in 1990
Key Areas of Comparison
Mortality Table
Interest Rates
Current
Guaranteed
Type of Products
Available
1990
Today
1958 or 1980
2001
6-10%
4%
Term
Whole Life
3-6%
3%
All Products of 1980
Equity Indexed UL with
and without Guarantee
Guaranteed UL
Variable UL with and
without Guarantee
Current Universal Life
Underwriting
Finger Stick
Limited, slow to become
available
Full Fluids
Better understanding,
internet availability with
high degree of free
flowing collaboration and
innovation
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Requirements
Information/Technology
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Life Insurance Today
Example #1
Example # 2
 Female, Age 57
 $1 million Whole Life with term blend
not guaranteed
 Originally $20,000 projected premium
payable for 10 years
 Policy still requires two more additional
payments
 Male, age 72
 Universal Life assumed 9% credit rate
 $35,000 projected premium payable for
8 years
 Policy projected to lapse in 15 years
RESULTS
RESULTS
1990 – Highly Rated History of
1990 – Standard Due to blindness
Cancer
TODAY – Preferred Non-Smoker New policy
requires no additional premium
guarantees coverage for 20 years
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TODAY – Standard New Guaranteed policy
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Case Studies
Eliminate Premium & Guarantee Coverage
Insureds
 Male, age 81 and female, age 80
Underwriting Factors
 Male, issued Table C
 Female, issued Table A
 11 year-old Whole Life policy
Current Policy Facts
 Annual policy premium of $65,000
 Premium required for additional 13 years
Audit Results
 Provided Standard Non-Smoker on the female and Uninsurable on the male
 Clients were provided with two options and chose option 2
Option 1 – Maintain current annual premium of $65,000 for 13 years. In year 14,
utilize paid up additions to pay for premium
Option 2 – Move existing coverage, maintain the same benefit with no future
premiums and guarantee coverage to age 120.
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Insured
 Male, age 75
Underwriting Factors
 History of Hypertension and CAD
Current Policy Facts
 Policy face amount of $4,250,000
 Policy relies heavily on invested portfolio
Audit Results
 Proved client with Standard Non-Smoker Table 8
 Client was provided with two options and chose option 2
Option 1 – Rely on the policy value to carry the coverage to age 100.
Option 2 – Obtain a $5,900,000 policy with no future premiums and guarantee
coverage for life
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Product Improvement
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Having the Life Insurance Policy Review Conversation
New Clients
Anyone who has a current permanent life insurance policy is a prospect for the
Life Insurance Policy Review Program.
Centers of Influence
Any CPA, attorney, tax professional or trust officer who has advised a client on the
purchase of life insurance, or is responsible for the maintenance of life insurance,
may have clients who are prospects for the Life Insurance Policy Review Program.
Your Clients
Prospect your present block of business or client base. This is the business you
are responsible for and what is most important for you to review.
Questions to Ask Yourself
Do you have clients with policies significant in size:
 Owned inside a trust?
 Whose continued relationship is important to you?
 Who have date policies more than four years old?
 Whose financial, business or personal situation has changed?
 Who were issued on a rated (impaired) basis?
 Who own whole life, variable life or current assumption UL?
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Answering yes to any of these questions indicates it is a perfect time to
conduct a Life Insurance Policy Review.
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The Advantage of working with (BGA Name)
We keep the focus on you, so that you can take care of your client’s life insurance and financial
planning needs.
We are one of the largest, most dynamic brokerage agencies in the United States. We have a
history and reputation of reliability, dependability and success in growing businesses like yours.
We’re not willing to sit back and count on our past successes. Instead we’re constantly looking
at the newest, most innovative ways to serve our advisors.
We want to be your strategic business partner. Building lifelong relationships with you and
your customers is what we do. Our job is to help you find ways to provide better products and
services to your existing clients and while at the same time increasing your value and exposure
enabling you to find new clients.
We will analyze and identify your client’s needs behind the scenes, and equip you with
important and relevant information that sets you apart from your peers. We can work with you
as closely as you’d like, right down to sitting across the desk from you and your clients and
helping explain the products that are right for their situation.
Our Partners
We are backed by the power of AimcoR Group, LLC. AimcoR is one of the nation’s leader in
independent marketing for life insurance, long-term care and annuities.
AimcoR allows us to keep our focused on you. We have worked with our advanced
underwriters for years and we trust them to take on even the most complex issues of estate
planning, taxation, business insurance and even employee benefit plans. With (BGA Name) and
AimcoR you’ve got the best backup in the business.
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Our ability to offer you the critical resources needed to grow and prosper in today’s everchanging competitive industry is the value we bring to the advisors that chose to work with us.
We’re committed to you and your relevance today, tomorrow and for years to come.
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