Insurance Policy Audits
Just like any other asset, life insurance needs to be monitored and managed as policies are affected by changes in the financial market landscape. Due to the sustained low interest rate environment, the crediting rates and dividend scales for many existing policies have decreased dramatically. With recent product innovations and different mortality tables, new product offerings may be able to save significant premium dollars or increase the desired benefit for the same premium commitment.
Many policies may require significant premiums to perform as anticipated, yet most trustees, advisors and policyholders aren’t even aware of the problem because these policies haven’t been reviewed in years. Through our policy audit platform, we perform a necessary “check-up” on the health of a policy.
We analyze the financial strength ratings of the issuing insurance company, evaluate alternate funding scenarios and stress test the policy using lower interest rate assumptions, all while considering how the policy should be best structured to meet your goals. When analyzing product alternatives, we are not singularly focused on one carrier or product type.
We look across dozens of insurance companies and look at a myriad of different products including:
- Current Assumption UL (CAUL)
- No-Lapse Guarantee UL (NLG-UL)
- Indexed UL (IUL)
- Variable UL (VUL)
- Whole Life (WL)