policy audit



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Insurance Policy Audit

JUST IN $149.00

Our goal is to offer a better alternative to fit the current and future needs of our clients, by scrutinizing current in-force policies and negotiating for better, more cost-effective options. The options may include reducing premiums through more cost-effective programs, or being able to increase the benefits of the plan for the same cost. A life insurance audit is a comprehensive evaluation of your existing life insurance coverage. It is designed to help determine how the insurance policies you own are meeting current needs. Life insurance is a financial product and should be managed, like any other asset.

Life insurance policies are often purchased based on assumptions about future performance and needs. Some insurance policy’s performance relies on crediting rates or dividend payments from insurance companies. The amount and frequency of premium payments can impact the anticipated future values of a policy. Life insurance policies death benefit may be impacted by late or missed premium payments or outstanding policy loans.

  • Life Insurance policies should be reviewed about every four to five years
  • Family or business situations have changed
  • Increase in the number of dependents that you are financially responsible for
  • Policy interest rates, dividends, or investment returns have declined
  • The insured’s health has improved, opportunity for potential savings in policy expenses
  • The insured’s health has declined, confirm current policy values
  • Growth in mortgage loans or business liabilities
  • The policy has outstanding loans, requires policy changes, or is nearing the end of its conversion period
  • A review of in-force life insurance relative to current needs
  • An analysis of current policy funding
  • An investigation seeking improvements in your medical underwriting classification
  • An analysis of your policy’s performance compared to illustrations at the time of the sale
  • An assessment of the current ratings of each insurance company owned
  • A comparative analysis of your policy and policies currently available in the marketplace
  • Decision making support from Capital Crest Financial Group professionals

Permanent life insurance policies are complex contracts and should be reviewed every few years. Audits should include:

  • Policy administration to ensure policy premiums are timely and appropriate, accounting of policy values is accurate, and ownership and beneficiary information is correct
  • Insurance carrier’s ratings to ensure financial integrity remains positive
  • Changes to federal and/or state tax law that may negatively impact the policy

Policy performance to determine if the policy is performing as expected, and consideration for:

  • Improved underwriting options
  • Appropriate product risk
  • Products with more cost-efficient pricing and guarantees – Innovative riders with improved options
  • Change in need from a second-to-die policy to a single life policy
  • Order and review all in force life insurance policy statements
  • Analyze current premium funding level and frequency
  • Review projected guaranteed and non-guaranteed policy values
  • Investigate for possible medical underwriting class improvement to reduce policy expenses
  • Evaluate policy conversion options (if applicable)
  • Assess industry rating bureau reports of insurance companies
  • Review new products or riders that may enhance your coverage