Get the most Mileage out of your Life Insurance!

Summer vacations and summer driving start with making sure your vehicle is in top shape. Just like you would not trust driving thousands of miles without making sure your vehicle is performing as expected, why not check your life insurance policy to see how it is performing? Some of the same tips that you can use to save money at the pump can also apply to potential savings on your life insurance:

ü Stick to a routine maintenance schedule. Your car has routine maintenance at certain mileage (5k, 15k, 25k, etc…).  You should get a check-up on your life insurance policy routinely every year on variable policies. Given findings from independent studies^[1] indicating there can be as much as a 40% swing between best-available rates and terms and poorly-priced products, the opportunity to bring reduced policy expenses and/or improved performance of invested assets underlying policy cash values can be both significant and meaningful today.

üDon’t haul around excess weight. No junk in the trunk! Are excess fees and costs weighing down your life insurance vehicle? Premiums are not the true cost of an insurance policy. Premiums are instead the funding plan to cover expected cost of insurance charges (COIs), fixed administration expenses (FAEs), cash-value-based “wrap fees” (e.g., VUL M&Es) and premium loads over the expected duration of the policy contract.  In other words, planned premium payments are always a function of the following formula: Premiums = COIs + E – i%. 

üIf you own more than one vehicle, choose the more “fuel-efficient” one. Just like consolidating vehicles can save you money, so could consolidating life insurance policy, IF you know which policy would be the best policy to keep. Also, just like trading in your gas-guzzling Hummer for a shiny new Corvette doesn’t make sense when trying to save gas mileage, you need to review your objectives and suitability of your life insurance policy before you make a decision. THEInsuranceAdvisor.COM research is derived from various independent sources to include thousands of actual insurance company pricing representations for hundreds of different products and actual performance data for invested assets underlying policy cash value, and reveals the overall suitability of a given life insurance product relative its peer-group and based on 5 of the major factors of suitability as to 1) financial strength and claims-paying ability, 2) actual cost-competitiveness (i.e., measured separately from performance assumptions), 3) pricing stability, 4) cash value liquidity, and 5) actual historical performance of invested assets underlying policy cash values. 

üCarpool with neighbors or co-workers. Sometimes just meeting with your advisors gives them a chance to share their knowledge with you and by using THEInsuranceAdvisor.COM Confidential Policy Evaluator (CPE) research reports; you can independently verify that knowledge. Clients reliable advice about which life insurance product is best for them must select life insurance advisors that have both the experience and research necessary to know the facts that then lead to the most suitable life insurance product recommendation. 

üKeep track of your maintenance. Show your fiduciary duty by including a CPE research report with your file each and every year. While due care is an emerging field, and while there is room for a difference of opinion in some areas, THEInsuranceAdvisor.COM goes well beyond overly-simplified comparisons of comingled and hypothetical policy values to better protect and/or compete against those misleading Policy Review systems or services. 

ü Slow down and avoid quick starts and stops. Before you make a decision to buy a new policy or to make a change to your existing policy, get a CPE research report to support your decision.

Save both fuel and funds with these tips!

THEInsuranceAdvisor.COM provides the empirical pricing and performance research essential to any complete investigation of life insurance policy suitability (as defined by regulators or the Prudent Investor Act) and which can then lead to independent and objective suitability determinations. 

Use the Confidential Policy Evaluator (CPE) Research Reports to determine the appropriateness of pricing, the reasonableness of performance expectations for invested assets underlying policy cash values, and overall suitability for you(r clients) policies based on the 5 factors of suitability.  Click here and get up to 3 Confidential Policy Evaluator (CPE) research reports under our NO-RISK trial subscription.