You Ought to Know:
Your Life Insurance Policy Could Die Before You Do
By Raymond L. Adams, CFP®, CLU, ChFC
How could that happen? Originally projected interest rates could have decreased. Perhaps some payments were not made, or the insured never thought he or she would live as long as they have. And while there may be other reasons, the point is if you or a loved one is in the potential predicament of an insurance policy lapsing, for whatever reason, it is better to find out now than later. This is not an infrequent occurrence. Fortunately though, most often the problem is, at least, partially rectified, if caught in time.
MAKE SURE THIS DOES NOT (unknowingly) HAPPEN TO YOU
If you have a universal life insurance policy, look at the most recent annual statement you received from your insurance company. There you will notice that your insurance company’s own guaranteed projections, which are different than the non-guaranteed assumptions, illustrate the possibility of whether your policy could die before you do.
Now, if you are unable to locate your recent statement, you could request an “In-force policy projection” directly from your current company.
GOOD NEWS VS. BAD NEWS
Upon receiving this “In-force policy projection” from your current company, If all is well, wonderful. However, if your policy is in jeopardy of not performing as well as you thought it was going to, fortunately, even if this is the case, there are usually various options available to soften this situation. For example, you might:
• Add extra money to maintain the current death benefit
• Reduce the death benefit to lengthen the years it will last
• Exchange your policy for a new one, with life-long guarantees—if your health permits
• or look into the possibility of a Life Settlement, i.e., sell it for cash
Regardless of how many, or how few, years ago you purchased your current life insurance policy, it would be wise to, at least, obtain a life insurance policy review to find out if your life insurance policy is at risk of dying, before you do.
We extend our services to you, without obligation. There is no downside of getting a “Life Insurance Policy Review”—but there may be a downside in not getting one.
If you would like our help, we look forward to hearing from you (425) 827-9225.
Capital Enhancement Group, Inc. • 611 4th Ave. Suite A • Kirkland, WA 98033 • (425) 827-9225