Life Insurance Review & Market Study

The life insurance industry has almost certainly changed since you bought your last policy. New products have been developed and prices are falling, yet many policies are still underperforming. Meanwhile, as your policy continues along the same path year after year, your goals may now be different. The old “buy it and forget it” mentality no longer applies in today’s ever changing and competitive economic environment.

Furthermore, there is a fatal flaw in today’s life insurance policy management system. Annual statements do not sufficiently analyze the future performance of a life insurance policy. It is information without meaning (cash value, premium and death benefit). It doesn’t address the issues that can impact the policy’s long-term value such as whether the policy will lapse prior to life expectancy or whether it is overfunded. Add to that, the system relies on agents and brokers who receive “heaped compensation” (substantially all in the first year) to service the policy. It is no wonder policies go unattended without consideration.

Trust and Estates Magazine published a study that shows the following:

  • 71% of trustees have never performed an annual policy review
  • 84% of trustees have no procedures in place for due care
  • 92% of policies can be restructured to reduce costs or increase benefit
  • 78% of policy owners/trustees report they have no active servicing agent

This leaves trustees and/or fiduciaries in a rather precarious position. If policies that can be made substantially more efficient continue to be ignored, beneficiaries can become angry. There is another name for angry beneficiaries – Plaintiffs!

WealthPoint provides an objective, fiduciary quality assessment of your life insurance portfolio. We will help you determine if your insurance still meets your specific planning needs and whether your products are still competitively priced. Our reviews are provided on either a fixed fee or contingency basis.

What Is Included?


  • A current needs assessment
  • Detailed policy summary including a review of policy ownership and product type
  • In-force re-projections of future premiums, cash values and death benefits based on actual experience and current assumptions
  • A credible baseline should be established. Often the existing policy can be restructured or altered to make it more efficient.
  • Reevaluate the underwriting risk class of the insured based on current medical information. A rate class improvement for existing policies is often available.
  • Assessment of policy charges and assumptions and their impact on performance.
  • Evaluation of the insurance company’s current financial ratings and outlook.
  • Recommendations to bring current policies back in line with initial expectations.
  • Assessment of funding strategies (payment periods, loans, split dollar, etc)
  • Review restructuring strategies such as consolidations, §1035 (tax free) exchanges, face amount decreases, or sale of policy to third party (when coverage is no longer needed).
  • A complete Market Study to determine if the current insurance products are competitively priced.
  • New standard for Due Care - In-force policy reviews annually, complete market study every 3-5 years.
This thorough process produces a clear and objective assessment of your insurance and recommendations for future action.

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