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Your next life insurance policy review does not have to end in a sale.

You heard that correctly.

In fact, think of it not so much as a transactional situation, but a chance to offer advice and guidance while building a stronger relationship with your client. A life insurance policy review provides you with the opportunity to make certain a client’s policy is performing in the way it was intended.

All policies start out with specific parameters designed to meet the insured’s plans at that time. These parameters can include a projected cash value, guarantee period, or targeted death benefit amount. The policy review is the perfect moment to check in on the policy to make sure those parameters are being met. If they’re not – then the policy is underperforming, and adjustments should be made. A policy could be on the verge of blowing up due to the current and past levels of crediting and charge rates. Or coverage could be at risk of lapsing because the client simply forgot to pay the premiums.

That said, in some cases – many, even – we may pull a client’s policy information and realize that everything is chugging along just fine, and there is no reason to touch them. That’s ok too.

The point of this exercise is to identify where your client’s risks lie and provide them with usable information. The policy review is a prime opportunity to reconnect with your clients as human beings using one simple question: “What are your needs at this point in time?”

What’s changed with your family? Your job? Your business? What’s new? What life events have occurred in the interim that may affect need? Can old policies somehow be repurposed into new coverage that better suit your clients’ current lifestyle?

Consider the following:

  • Has the client’s policy changed due to market forces, carrier changes, or missed premiums?
  • Are there any coverage changes that transpired that the client is not aware of? How do these changes impact the plan? 
  • Has the client’s health improved (has the client stopped smoking, lost weight, etc.? A better underwriting class may be possible.)
  • Has the client’s health worsened, and a term conversion should be considered?
  • Is additional coverage needed to protect the family or business?
  • Have beneficiaries on the policy changed? You might be surprised how often people get divorced but neglect to change their beneficiaries – until it’s time to retire. Now is the time to pinpoint these potential hang-ups before they truly become problematic.

Additionally, favorable tax regulations exist – such as the 1035 exchange – that potentially allow policyholders to transfer funds from an old life insurance policy to a new policy, without having to pay taxes on any gains.  What if we can exchange the cash value in one policy for a paid-up policy with Long-term Care?  This possibility may remain hidden without the help of a policy review.

Again, the review process is not necessarily about making money. It’s about connection. It’s about serving your client’s best interests, and establishing a more loyal, long-lasting bond.  

One thing is clear: life insurance policy reviews are rife with possibilities allowing you to set up safeguards around your clients’ policies, while ensuring their financial futures.

Belman Klein Associates provides our insurance partners with a turnkey program allowing them to conduct comprehensive policy reviews. By analyzing your clients’ existing policies and comparing them to the overall marketplace, you can help them sidestep unexpected product failure or underperformance while mitigating risk to their financial legacies. Contact us today and let’s discuss these phenomenal opportunities together.