Life Insurance Policy Reviews

Rich38

New Member
9
Hello everyone.

I'm new to the site and looking for some help. I've been involved with the industry for the last 15 years in various sales support capacities (Advanced Markets Group, Sales Desks, etc.). However, I am now working independently as an investment advisor and insurance broker. Through my connections, I've been asked to review some life insurance policies owned by a non profit. I was wondering if anyone knew of good policy insurance review software (and any other resources) that could help assist with this.
 
I was wondering if anyone knew of good policy insurance review software (and any other resources) that could help assist with this.

There is only one way to review policies. You read them, and you either understand them or you don't.

I've been asked to review some life insurance policies owned by a non profit.

Why?

They didn't just hand you a stack of policies and say "Please review these policies."

Reveal the rest of the conversation and maybe one of use can give you some helpful comments.
 
Through my connections, I've been asked to review some life insurance policies owned by a non profit. I was wondering if anyone knew of good policy insurance review software (and any other resources) that could help assist with this.

AdjusterJack is right. You read the policies and figure it out.

What is the purpose of the review? Policy performance? Adequately funded for the death benefits? Adequate death benefit coverage for what they were intended for as of now as opposed to when they were originally purchased? Do they need more coverage? Do they have "too much"? Are they paying too much for what they have? Are they not paying enough so there will be trouble down the road? Are the policies not earning enough for the intended purpose?

For example: A key man policy that was also intended to be a golden handcuff benefit, if not fully funded and not earning well... may end up ONLY being a key-man policy.

As soon as you know what you are solving FOR, we can be far more helpful.
 
You were an internal wholesaler/help desk. If an agent called YOU up and asked you what you asked us... what questions would you be asking them?
 
I'm sorry that I wasn't clear on what I'm asking. I did work in an Advanced Markets group. I know what type of questions to ask. The non profit is trying to maximize their overall IRR as the purpose of the non profit is to have more money for their charitable work.

They are trying to determine their if:
1. They should cash the policies in now (and invest) the proceeds to wait.
2. Same as one with maybe buying term instead and investing the difference (in case someone does die prematurely).
3. Replacing the policies with another product
4. Holding the policies.

When I was in an Advanced Markets department, we had a software tool to help us run every scenario and crunch these numbers. It also gave us details on some older policies (such as details of older riders that I am not familiar with). However, the name of the tool was never made available to us. Therefore, I'm trying to see if something similar exists.
 
That software must've been really convenient. Reminds me back in my couple of stints in merchant card sales. All we had to do was relay a couple of numbers off their statements and we could know their transaction costs in some miraculous way and make them a new low-ball offer to switch. I always asked how they figured it out so *I* could do it myself (these statements are not very comprehensive) and they couldn't tell me.
 
When I was in an Advanced Markets department, we had a software tool to help us run every scenario and crunch these numbers. It also gave us details on some older policies (such as details of older riders that I am not familiar with). However, the name of the tool was never made available to us. Therefore, I'm trying to see if something similar exists.

It did this for multiple carriers? Or just the carrier you worked under at the time?

It sounds a bit like Insmark Software. There are multiple carriers that integrate directly with Insmark from their illustration software. They usually offer a limited version of the software for free, but it only integrates with their illustration software.

But you can manually enter info for other policies on the free version. It has lots of different comparison scenarios, including the ones you mentioned.
 
Right now, I'm just trying to run them the IRR trade off's on how much money they are giving up on the DB if they surrendered it today vs. keeping the policy in force. From there, I could use that as a basis on what to do (cash in and invest, replace, etc.)
 
They are trying to determine their if:
1. They should cash the policies in now (and invest) the proceeds to wait.
2. Same as one with maybe buying term instead and investing the difference (in case someone does die prematurely).
3. Replacing the policies with another product
4. Holding the policies.

You need software to figure this out?

In my day I used pencil, paper, and a slide rule while walking to work 5 miles in the snow, uphill.

;)
 
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