- increase death benefits
- reduce premiums
- establish a lifetime guarantee
- identify a policy in danger of lapsing
Policy Projected to Lapse
If you receive an annual statement each year from a life insurance carrier, you owe it to yourself to have an independent agent review it.
If you have life insurance policy begun in the 1980′s or 1990′s, you owe it to yourself to have it reviewed by an agent. Do not assume you have whole life, and do not assume your coverage is permanent and will automatically cover you to age 100 and beyond. 80′s and 90′s policies are generally universal life (UL), and you may be on a ship with a hole below the water line. Companies put out UL annual statements that vary in quality. The key information should be something like this:
Based on guaranteed assumptions, your policy will expire on (xx/xx/20xx)
Based on non guaranteed assumptions your policy will expire on (xx/xx/20xx)
Unfortunately, some carriers don’t put these key facts clearly in your annual statement. One’s eye is naturally drawn to the cash value figures. What you need to do is to request an in force illustration. (1) An experienced agent, like myself, can analyze the viability of your coverage to last the rest of your life and to meet your goals. Many policies from the 80′s and 90′s were poorly designed, the cash value of your policy may run out, and the company will ask you to pay a higher premium, on a year to year basis, to keep the policy going.
Don’t just file away your annual statement. Send it to an independent agent and broker for a policy analysis review.
What is policy analysis review ?