Life insurance products are confusing, complex, and often misunderstood. It is an initiative at LIFE Brokerage to educate our advisors so they may provide clarity to their clients. We often uncover that the most efficient policy a consumer can obtain is the one they currently own…it simply needs to be optimized. We stress-test existing policies and research the current market to determine if existing coverage should be maintained, complemented, or replaced.
Pricing Adjustments Due To Interest Rates
WHY WE’RE DIFFERENT
Graded/Non Level Premium Designs
Create double digit tax-free IRR to the family by designing non-level funding strategies combined with option C death benefit. Sophisticated investors get to reinvest cost savings in their asset of choice AND own permanent life insurance as an asset class.
Permanent Policy Review
Analyze policy performance, product features, assess cost of insurance charges, review over loan protection rider, identify chronic/long-term care riders.
Insurance Policy Optimization
“Optimize” exiting policies for efficiency in premium/death benefit ratio. Unlock the hidden values invisible to the naked eye.
Select a Term
Helps improve pricing on term policies with remaining duration 15-30 years. Ability to issue level term periods in 1 year increments to coincide with planning needs or existing policy duration. Promotes cost savings and carrier diversification.
Policy Loan Rescue
Transfer via 1035 exchange, implement an exit/buy-down of existing loan, introduce more favorable loan terms. Identify offsetting policies, term blending or interest/dividend dependent contracts held in a decreasing interest rate/dividend rate environment with increased policy loan rates.
Split Funded Plans
Bifurcate cash value and death benefit for optimal performance by removing unnecessary drag via policy charges to maximize both death benefit and cash
value IRR.
Premium Financing Review
Inflation, rising interest rates, increased policy loan terms, and stagnant product growth have introduced challenges never seen before. Our models will complete a complementary analysis that lead to 1 of 4 options: A. Stay the course, B. Make changes to the existing policy, C. Internal policy borrow with 1035 exchange of policy loan, or D. Secure non-finance coverage and pay off the existing lender.