Life Insurance Managment

One aspect of retirement portfolios that frequently gets overlooked is life insurance. It is easy to remember the amount of coverage in place but what else?

• Have you had an “in-force” policy illustration run lately? It is possible that the life insurance plan you bought in the past will not last as long as you initially thought.
• Will your life insurance last as long as you need it? Market conditions could affect the longevity of a variable policy which could have been designed to only last to a certain age. Or the policy may have been designed improperly in the first place.

In some instances a policy that was initially created to last to age 100 now might not last past age 84. A current illustration shows how long the policy will last assuming the payments continue as scheduled and it will highlight factors in the rates that have an impact on performance of the policy thus far. It can be quite unsettling to discover that a policy won’t be there when it is needed most. But more importantly, an illustration gives you a chance to take action, if needed, to ensure you have the coverage you need when you need it.

Due to people living longer, the cost of insurance has decreased significantly over the years. A policy purchased four years ago may adequately cover estate needs but there could be a more economical option. There are a number of innovative new programs which could be used to leverage your policy to the fullest.

During these tumultuous economic times, big insurance companies keep appearing in the news. We have witnessed insurance company failures first hand, and in some cases, investor confidence has diminished significantly.

Huge, well established, life insurance companies have been subject to massive financial overhauls. An insurance company’s ability to pay claims is the basis for its reputation. Just like their banking counterparts, there are a number of insurance companies who saw opportunities for huge profits in the mortgage arena. Taking on risky mortgages has crippled our country in many ways and diminished the confidence people once had in the financial systems of our country. There is no shortage of articles regarding these institutions.

By examining an insurance company’s financial information, you will discover what types of investments it makes and how much risk it is assuming. Obviously there is no crystal ball to foresee a company’s future, but it pays to be pro-active with your current policies or ones that you may purchase in the future.

The main point is to take the time to research the insurance carriers you are considering prior to any purchase. And for the policies you already have, feel free to contact our office and we can provide a comprehensive review of your policy and the carrier.

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OUR AUTHOR
LeRoy Matticks is President of The Legacy Funding Group. For more than 13 years, LeRoy has been actively developing a proven niche working with affluent clients, charities and non profit groups to create an integrated solution to personal estate planning needs while incorporating proven strategies for charitable giving. Visit our site at: http://www.thelegacyfundinggroup.com. eMail Us Today: info@thelegacyfundinggroup.com