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Recent economic changes have pressured insurance companies to seek new avenues to increase profitability. In addition to raising the cost of new policies and reducing their contractual guarantees, several major insurance companies have increased mortality costs on existing coverage.
In these cases, the projected duration of the policies will be shortened, and policyholders will be required to pay significantly increased premiums to be certain their policies will last their lifetimes. These challenges have become more problematic when larger estates and corporate insurance arrangements are involved.
Several insurance companies are making foundational changes in the way they conduct business which could have an adverse impact on your clients’ policies. For example, some companies have sold large blocks of business to non-insurance entities which may not be equipped to properly manage in-force policies.
My insurance company just increased my annual premium from $40,000 to $180,000
My insurance coverage that was guaranteed until age 100 will now end at age 85
My insurance company (or a division of) was just sold to a private equity firm
I can’t afford or don’t need my insurance coverage any longer
My insurance company’s financial ratings were significantly downgraded
If new tax legislation changes my estate tax thresholds, how much insurance do I need for my estate plan?
With years of experience reviewing thousands of complex insurance arrangements, Burns Lowry has the expertise and proprietary analytical tools to evaluate your client’s policy and the strength of the life insurance company that is guaranteeing the policy.
With each policy analysis, you and your clients will receive a detailed, written report with recommended action steps. The results are often surprising, always enlightening, and enable you to give your clients and trustees peace of mind.
