Welcome to Bruce Gendelman Insurance Services - Why Perform Life Insurance Reviews?

Why Perform Life Insurance Reviews?

Life insurance is more than protection. It is a valuable asset. And like other assets, it needs to be reviewed on a periodic basis. Too often life insurance policies are purchased and then tucked away, never to be revisited again. The result can be dollars lost – money wasted on overpriced insurance or policies that are no longer needed.

Any time you experience a major life change such as marriage, the birth of a child, the purchase of a home, a career change, retirement or divorce, it is a good idea to reevaluate your life insurance needs.

Our life insurance professional will review your existing coverage and offer ways to trim away the excess or correct other problems, should they exist. Following are several examples . . .

Term Life Insurance. Competition and improved mortality have driven the cost of insurance down in recent years. Term rates are especially low, which is why it is important to compare yesterday’s premiums with today’s prices. It may be possible to increase coverage without additional outlay or extend the period during which premiums remain level, for example, from ten years to fifteen or twenty.

Variable Universal Life Insurance. VUL policies have a cash value component that is tied directly to the market. With this type of policy, the owner selects from various investment options, such as stock, bond or money market funds. Because the risk is shifted from the insurance company to the policy owner, only an experienced investor should purchase a VUL contract, one who has a tolerance for risk and the inclination to monitor the policy’s portfolio on a systematic basis.

If VUL policies are neglected, fund values can diminish and reach a point where they no longer support the cost of insurance over the long term. When policyholders find themselves in this situation, they tend to allow their policies to lapse and valuable coverage is lost! There is another option, however, which is similar to refinancing. By using the policy’s remaining cash value, it may be possible to purchase a replacement policy that better meets the needs of the insured. Here is an example of how one individual was helped.

Universal Life Insurance
UL policies are interest rate sensitive and our present low interest rate environment has adversely affected their performance. Projections obtained from insurance companies often show that policy owners need to pay additional premiums or face losing their coverage. Refinancing may be a suitable option, in which case we would use a 1035 tax-free exchange to replace the existing contract with a policy that has better guarantees, as shown in the example below.

A husband and wife in their
mid-70’s had an older survivorship policy. Their desire was to stop
paying premiums and increase
their children’s inheritance.

Whole Life Insurance
Many of these policies require years and years of payments before premiums are offset by dividends. Although they are often purchased for their rich cash values, policyholders later determine there is no need for the cash and view the policy as an inheritance for their children. Our clients are often pleasantly surprised to learn the cash value can be used to leverage far more insurance benefit inside another life insurance product. This final example is of a married male in his mid-40’s with young children. His goals are twofold: income replacement and estate preservation.

Why review your life insurance?
Significant changes have taken place in the life insurance industry. Products have been redesigned to be more efficient and cost effective. We are seeing enhanced features, stronger guarantees and more competitive pricing. For these reasons alone it is a good idea to review your existing coverage. More importantly, if your personal situation or goals have changed, now is the best time to seek advice from a life insurance professional.

Receive a complimentary assessment
Simply let us know you are interested in an evaluation, and we will have our life department manager contact you. E-mail: bhess@gendelman.com or call 800-845-4145, Ext. #10.