Life Insurance Policy Audit – Are you paying too much?

By: Drew Watson, Risk Advisor, Wealth Management Services

December 13, 2016 – Given that life insurance is a financial product, it should be managed accordingly and periodically evaluated against current market rates.  We have seen declining interest rates over recent decades that have caused significant underperformance of permanent life policies.  As a result, these policies are underfunded and now require increased premium to keep the policies in force.

Due to declining interest rates and the increase in life expectation, the Cost of Insurance (COI) has seen a significant decline in new policies.  As a result, a policy that was previously purchased could have a significant higher rate than reissuing a new policy with the same coverage options.  These new policies also incorporate radically lower administration charges and policy fees.

A life insurance policy audit will determine how existing life insurance policies are performing, if the policies are adequately funded and meeting current needs, and will compare products that are available in the open market to ensure you have the most competitive products available.

Some examples of what we have been able to achieve follow: