Compare Insurance Offerings With Life Insurance Policy Reviews [Case Study Included]

by Dave Henry
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Life insurance policy reviews can be conducted for all in-force policies through our Comprehensive Analysis & Review program, or CAR.

With CAR, partnered financial professionals can bring clarity and understanding to a client’s in-force policies while comparing them against the insurance offerings available today.

What CAR Life Insurance Policy Reviews Accomplish

Life insurance may be one of the largest assets within an estate and is generally not evaluated, reviewed, or appraised.

The CAR program provides financial professionals with a process led by product experts to efficiently and effectively conduct a comprehensive insurance policy review.

An in-depth CAR review looks at all aspects of a client’s insurance portfolio to:

  1. Uncover how the current policy has performed to date.
  2. Learn how it’s projected to perform moving forward.
  3. Understand underwriting and the overall goal of the insurance portfolio.
  4. Consider what products today may be more efficient in reaching goals.

CAR can enhance your relationship with your clients by doing what many other financial professionals won’t or can’t do—educate them on their current insurance portfolio performance and analyze the best course of action moving forward.

Ideal Client for CAR

This one is easy! Any age client who owns life insurance (purchased five or more years ago) but is unsure if their insurance portfolio will meet their current goal.

Another clear-cut ideal client would be one whom recently had a life event or change in health (positively or negatively).

Key Selling Points for Life Insurance Policy Reviews

  • Educate and help clients understand what they currently own and how it’s projected to perform moving forward
  • Compare the current insurance policy or policies to the marketplace today to determine if options exist that may meet current goals more efficiently
  • Ability to use the FIG CAR process to obtain detailed information and in-force illustrations needed to conduct a review
  • Will deepen your relationship with your clients by adding value and truly being able to advise them on how best to manage their insurance portfolio
  • Allows you to market yourself to centers of influence as a financial professional who can assist with their review process in an unbiased manner

Case Study

Tom is a new client with several whole life policies he’s purchased from his previous agent periodically over the last 20 years. He’s been paying premiums on most of them but said that he doesn’t know if they’re any good and if he should keep them.

A CAR policy review was recommended, and after all the in-force data was collected, Tom had $1,225,000 death benefit in place, and was paying $21,000 per year in premiums.

The current cash value was just over $350,000, and it was determined that at the current dividend rate, Tom could stop paying premiums on all but one of his policies if he so chooses, and they’d project to carry on to maturity.

It was also determined that he could opt to roll over the current policies into a new index universal life (IUL) policy that, with no future premium outlay, would project a higher death benefit, higher projected access to tax-free income in retirement, and have access to his money for long-term care costs should he need it.

Once Tom fully understood what he currently owned, he chose to replace the coverage with a new policy that was more efficient in meeting his objectives.

Related: 7 Steps to Complete a Life Insurance Policy Review [CAR Program Infographic]

Client Comments to Watch For

If your clients are communicating the following statements (or anything similar), it may be the perfect time to bring up the CAR option. Remind them that a life insurance policy review will help them know how their policy is performing, and if it can be improved to better meet their goals.

“I bought this policy so long ago that I don’t even remember what it is.”

“I’m not sure how this policy has performed and what my statements even show me.”

“When I bought my life insurance, it was for income protection, but now that I’m close to retirement and the kids are out of the house, what do I do with this policy?”

“I already have life insurance. I think we’re good on that front.”

Client Questions to Ask

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It’s up to you as the financial advisor to offer optimized solutions to your clients. So even if they aren’t bringing up their life insurance policies or portfolio, you should be.

Here are some questions to ask that can fuel demand for a CAR life insurance policy review:

“Do you have any in-force life insurance policies, and are you interested in seeing how these policies have performed since you bought them?”

“Do you fully understand all the moving parts of your life insurance portfolio?”

“Would you like to explore how your policy compares to the current life insurance policies available today that may have features or options that weren’t available to you when you originally bought this policy?”

“It looks like your need for life insurance has changed over time. Can we analyze your current insurance portfolio to see if it still meet your needs or if there’s a better option available in the marketplace today?”

Related: Life Insurance Policy Reviews for Clients [CAR Program Overview]

Learn More About CAR

Get to know more about the CAR life insurance policy review in this video over on our YouTube channel.

And if you’re ready to get started with CAR, click the button below to get in contact with us and receive your free copy of our CAR Life Insurance Concepts guide.

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Not intended for use in solicitation of sales to the public. Not intended as a recommendation of any specific product or strategy for clients or a class of clients. Products offered through Financial Independence Group may not be available in all states.

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