The Life Insurance Review Process is a free service provided by F.J. Wood and Associates to help our clients review and understand their life insurance policies.
We will analyze your current life insurance needs and evaluate your policy to ensure it is properly designed to address these needs. As a powerful risk management tool, life insurance is frequently purchased to address many varied needs.
Some reasons to consider life insurance are:
- Death benefit income
- Buy-sell funding
- Education funding
- Living benefits and cash flow
- Executive benefits
- Income replacement
- Key person insurance
- Asset preservation
- Retirement supplement
- Debt protection
- Irrevocable life insurance trust
- Estate planning
As needs, goals, uses, and preferences change, any permanent or term life insurance policy should be reviewed at least every one or two years due to:
- Your personal or business situation may have changed
- The need for life insurance may have increased or actually decreased
- Changes in health or product developments could lead to better value
- Changes in beneficiaries
Monitoring Policy Assumptions
Most life insurance policies have been designed based on numerous non-guaranteed assumptions. Over time, the actual performance changes from the assumptions — frequently by a large degree.
In some cases, this leads to better than expected results. In others, it leads to worse performance. In addition, few policyholders actually follow the original plan. This leads to even greater changes from the original illustration.
As we review your coverage, we will consider these questions:
- What is the impact of these changes on actual performance?
- How have policy charges and earnings diverged from the original assumptions?
- Have premium payment, loans, and withdrawals diverged from assumptions?