By Tom Russell
Summary: Request our Existing Life Insurance Consultation: Because of the low interest rate environment over the past number of years, 35% of life insurance policies in force today are in danger of imploding. If you own one, let’s look inside and investigate its viability. Also, with the longer life expectancy tables used by some companies, you might be able to leverage the policy into a substantially greater death benefit with no additional cash outlay, and even add Living Benefits to your policy for extended health care. Life insurance has changed dramatically, and for the better. Rates.
People often don’t understand that the Universal Life policy they purchased years ago is interest sensitive. In the low interest rate environment of the past 7 to 8 years, policies have underperformed relative to the projections first made when the policy was taken out. This causes a funding shortage that could be catastrophic, resulting in a policy that could implode. I’ve seen this happen to people who came to us for a review. They could not understand why their insurance company (often a well-known one) was sending a notice stating their premium would have to double or triple, just to keep the policy in force.
We can get the numbers and reports in BEFORE we meet, and even have the second meeting by phone if you prefer. Call us today. Fortunately, we’ve often been able to rescue policies in trouble. Perhaps yours is doing fine. Let’s be sure. All we need is your latest statement on your Life Insurance, and your written permission to order an “in force projection.” This will tell us how long the policy will last at your current premium. I know – you thought it would last your entire life. Let’s make sure it does. One of the new life insurance policies (North American Company for Life and Health Generation 8 for example) could be a possibility. Your cash value could transfer to the new one, with much better numbers for you. We won’t know until we look. The longer you wait, the worse it can get.
The following article appeared in a Professional Agent Journal. Though written for the agent, it gives a clear view of how dire this situation can be: