Life Insurance Audit

What is a Life Audit?

Life Audit 101 utilizes a process which thoroughly scrutinizes every detail of your current policies. We analyze the underwriting, the product, the carrier, and compare current policy illustrations to the originally intended goals. In today’s market, it is most likely possible to increase your death benefit for the same premium you are currently paying or reduce your premium while keeping your death benefit the same. Life Audit 101 will give you the information needed to make an educated decision about your life insurance.

Simple Steps of a Life Insurance Audit

1. Performance Review
Current policy information and illustrations are obtained for evaluation as to
whether original goals are being achieved.

2. Current Carrier Review
    An objective review of your current carrier’s financial stability is conducted.

3. Options Available
Over 50 top-rated insurance companies BID for your business.

4. Audit Report
The combination of all the audit elements are used to develop a written
comprehensive evaluation of your current policy and will be delivered to
you by one of our audit specialists.

Who Needs An Audit?

The Life Insurance Audit applies to anyone who:

  • Is an owner, insured or beneficiary of a life insurance policy; OR
  • Has a policy over 2 years old; OR
  • Is the insured and has experienced any health or lifestyle improvement

Event/Change:

Lifestyle Change

Controllable Health Improvements

Change in Financial Goals

Life Events

Impact to Life Insurance:

Changes in smoking, hobbies, and driving record can impact underwriting and price. Build, blood pressure and cholesterol can fluctuate for the better following a lifestyle change. Term Insurance may need to be permanent and permanent may now need guarantees. Children leaving home, death of spouse, care for parents can all impact life insurance needs.

Case Study

Current Policy Facts:

  • Universal Life policy issued in 1990
  • $1M level death benefit with a policy and cash surrender value of $317,309
  • At the annual premium of $30,000, the policy was guaranteed to age 83, and projected to last to age 92 based on current interest rates
  • Planning Goals: wanting guaranteed death benefit with minimal premium outlay

 

AUDIT RESULTS:

After underwriting, the client received a standard, non-smoker offer from
a top-rated carrier, which also provided a guaranteed death benefit.

  • New premium of $16,512 (a 45% annual savings) AND
  • Guaranteed death benefit of $1,000,000 for life

There is but one thing of greater importance to human beings. That is accurate thought.”

– Napoleon Hill