Policy Review
Overview
Life insurance plays a vital role in the comprehensive financial plan of individuals and businesses. Life insurance represents unique and valuable property and must be fully integrated into the strategies designed to accumulate, conserve and distribute wealth.
Life insurance property is dynamic. In-force policy values may change frequently; new policy designs are regularly available. Any revisions in the three fundamental components of any life insurance policy – mortality, interest, and expense – affect the values and performance of products. Therefore, any comprehensive review of a client’s financial portfolio must include a timely assessment of life insurance property.
Why do a Life Insurance Policy Review?
Capitas designed a proprietary Policy Review system that, in contrast to many similar programs, is not a policy replacement system. Great care has been taken to assure that the review generated are completely objective, compiling data from the current information provided by the policy’s issuing company. Advantages and disadvantages of all options available to the policy owner are provided. Reasons for performing a policy review:
- Policies may not meet current needs due to life or career changes
- Older contracts may use higher mortality rates than current policies
- If not properly owned, life insurance may increase estate taxes
- Beneficiary designations may be out of date
- Improved product offerings may enhance coverage; many new products have features that were not available in the past
- More lenient modern underwriting may provide the opportunity for improved classification and lower costs
- Existing term insurance may be approaching a point of premium increase or not-convertibility
What will a Policy Review do for you?
- The policy review will provide you with a detailed analysis of the status of your life insurance policy.
- The analysis will allow you to view the options available with your policy and the advantages and disadvantages of each.
- The review is provided as a courtesy to you. The review allows you to better understand your life insurance policy performance.
Why do a Policy Comparison?
At the completion of a policy review, clients are in a position to decide whether to maintain or modify their life insurance portfolio. Modifying the portfolio may range from relatively simple revisions of in-force policies to considerations of significant portfolio restructure. Restructuring the life insurance portfolio based on a current review may involve the addition, surrender, or replacement of policies within the portfolio in order to enhance performance and achieve stated objectives. The proprietary Capitas Policy Comparison provides a resource to evaluate individual policies being considered in order to modify the life insurance portfolio.
What will a Policy Comparison do for you?
To generate an objective policy comparison that is easy to comprehend, the Capitas Policy Comparison system makes use of policy values provided by the company issuing the in-force or proposed policy(ies). This data includes premium amounts and duration payments, face amount of death benefits and the length of their guarantee, and cash value accumulations at various intervals, including life expectancy. This side-by-side objective comparison enables clients and the advisor to visualize the important policy values of in-force or proposed life insurance alternatives.