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Insurance and Annuity Solutions for the Financial Services Professional

Policy Review

The types of life insurance available have changed dramatically in the last 20 years.

Term and permanent life are now available in many forms. Each type has unique characteristics that may be better suited for some situations than others. A review helps determine if existing coverage is adequate, or if a new version may be superior in performance, cost effectiveness and compatibility. A TNBC policy review may result in a desire to exchange your clients’ current coverage for different coverage.

To Start A Policy Review with TNBC:

  1. Download and complete the TNBC Policy Review Fact Finder.
  2. Ask your client for an insurance policy detail statement, annual statement or copy of the life insurance contract.
  3. Ask your client for an in-force life insurance illustration.
  4. Fax the completed TNBC Policy Review Fact Finder and all other documents to 515-558-6898.
  5. Call TNBC Life Marketing for assistance at 1-800-275-8622.

TNBC’s Policy Review will provide your client with a comprehensive comparison and analysis.

  • TNBC will assist you and your client with product recommendations.
  • TNBC will provide you with an objective evaluation and offer your clients a number of alternative options if necessary.

Here are some ideas and recommendations to consider when preparing to complete a TNBC Policy Review.

How is the life insurance your client purchased performing?

If the policy was first purchased at a time when interest rates were high, it is likely that the initial illustration assumed a relatively high interest rate for the life of the policy. In recent years, interest crediting rates on universal life or participating life dividends have been lowers. Similarly, the market downturns have affected performance of variable life policies. Even small variations from the initial policy illustration will cause a difference over time.

What type of guarantee does your client’s life insurance policy offer?

During periods of economic uncertainty, there is an increased level of interest in guaranteed death benefit life insurance policies and the protection that they provide. Unlike other financial instruments, life insurance provides for financial security for your client’s family or business in the event of premature death. TNBC wants to help your clients evaluate the security of the policy’s death benefit.

How competitive is your client’s life insurance policy?

Greater competition along with improvements in product pricing has driven down costs. A review can help determine whether your client’s coverage is cost effective or if more coverage can be obtained for a reasonable amount.

Has your client’s lifestyle or health changed?

Changes in health or lifestyle can have a profound effect or policy costs, or on the type of coverage needed. If your client has stopped smoking, premiums can be reduced. If your client no longer engages in certain activities such as piloting, scuba diving or foreign travel, rates may be lowered. If your client’s health has declined, they may wish to convert a term policy to a universal life plan.

Does it still make sense?

Is the original reason your client purchased their policies still applicable? Often, the need for life insurance changes throughout a person’s life. Your client’s children are grown and they no longer need to protect them. Your client may have sold their business and no longer need key person coverage or buy sell policies. Your client’s goals have changed or the size of their business has grown and their insurance needs have increased. A review helps you determine why your client may or may not need life insurance today, and will allow you to adjust their life insurance portfolio accordingly.

Does your client need to change the amount of life insurance coverage?

If your client has too much coverage, they may be able to drop some of the life insurance policies, reduce the face amounts or surrender a life insurance policy. If your client does not have enough coverage, they can take steps to purchase additional coverage to meet their needs. A review determines the appropriate amount of life insurance for your client’s situation.

If exchanging your client’s policy to another is your decision, here are some things to consider before committing to the exchange:

  • There are different features in many insurance products. Be clear in the features as well as the cost before exchanging a policy.
  • There are differences in premium and other costs for different policies. Be sure to understand the premiums necessary and the costs involved before exchanging a current policy.
  • If exchanging a policy, the policy owner may be subject to surrender charges on the existing policy which could affect the amount of exchanged funds and future premium payments that may be due.
  • Any 1035 exchange will subject your client to a new set of surrender charges on the new plan that has been selected.

Ready to Get Started?

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