You recognize the importance of knowing what your clients are passionate about in their lives. It is also critical that you are kept informed of any changes in their family, career, or finances.

Part of your ongoing due diligence should include assessing the impact of these changes on achieving client goals and, if necessary, recommending adjustments to their strategies to keep them on track. Even if the outcome is simply to stay the course, your proactive review can help deepen relationships.

Term policy

  • Is it close to the end of the level term period?
  • Is the coverage appropriate for the client?
  • Conversion options If the client is healthy, it should be compared to the newly underwritten policy.
  • Does the coverage go out far enough? Waiting will be more costly than just having the increase in premium now.
  • What kind of health is the client in right now? Maybe they can quit smoking and acquire non-tobacco rates.
  • If speaking to a business owner, ask if they have a business succession plan in place. Buy sell funding can be accomplished with a term policy for very little if healthy.
  • Streamlined or full underwriting? For younger and healthy insureds, there are some full underwritten options that are quick and easy that still allow best class.

Permanent coverage

  • Have an in-force illustration run.
    • (a) as is with the planned premium;
    • (b) solve for the premium to carry the policy (with UL’s that are not guaranteed, this is important).
    • (c) Zero premium if that is their intention
  • What is the cash surrender value? Any outstanding loans? Products have changed. Does the client want a guarantee now? Do they want cash value? Living benefits-LTC? What is the client’s need? Wealth transfer (2nd to die might be appropriate). Final expense? Estate planning?
  • Permanent life insurance can be a “want” versus a “need”. Some clients like that this asset is earmarked for leaving to the wife or kids. For healthier clients, one can point to the internal rate of return (a 5-7% tax free return at life expectancy is very appealing to some clients).

Life Insurance Policy Review can protect your client’s most important assets today.

Life insurance is not a one-time purchase. There are numerous ways to tailor your clients’ coverage to their current situation, depending on the policies they already have. Here are some of the most common developments to look out for during regular meetings and in conversation, as they are likely to have an impact on life insurance.

These developments may necessitate the purchase of new insurance or the modification of existing policies.