seven myths - the life insurance dr
Your policy is guaranteed- why do I need to monitor it?

Very few policies are fully guaranteed- I was shocked when speaking with a very astute CPA that this was their perception of life insurance. What was shocking was the realization that while clients might believe that, their advisors would certainly not . There are so many moving pieces to the performance of a life policy, combined with the constant evolution of carriers enhancements or adjustments to policies on a regular basis, that a bi-annual review at a minimum is highly recommended.
Can’t we just set and forget our new policy?
If you drove a car a far distance without ever checking the engine or getting an oil change, would it be any big surprise when parts started breaking and smoke started coming out of the hood?
If you purchased a watch but never replaced the battery, would you be shocked one day when it stopped telling time?
The point here is clear: there are few things in life that you can “set and forget.”

My friend who sold me the policy told me “everything is fine. We have reviewed your annual statement which the carrier sends out.”

The annual statement is far less detailed than what a professional needs to do a thorough analysis of the current performance of your policy.
What is needed is what is called an in-force ledger illustrating how your policy is performing compared to the original illustration with several different scenarios being illustrated. For example, several different crediting rates to show the impact if there is a change in crediting rates from the carrier.
Here is a question for you….Would you have your friend tell you your health is fine and there is no need for you to see a doctor?
Of course not. So why accept that advice when it comes to the health of one of your most important financial assets protecting your spouse, your heirs, and your legacy?

seven myths - the life insurance dr
term policies - the life insurance dr
Term polices have no value.

Steve Wasserman story. Fifty years as a very capable attorney, and neither he nor his agent had any knowledge of how life settlements could be an elegant solution for his specific situation. Trying to solve his problem without considering the benefit settling his term policy could provide, is like trying to give someone a recipe for bread but you fail to add the yeast to the recipe which means the bread cannot rise.

Because I am older, any new insurance must cost me more money.

Based on Case studies :


Existing life insurance policies can’t be improved because of price increases.

  • AG38
  • Low interest rates

60% of policies more than 3 years old can be improved with a new contract.

  • Extended mortality assumptions
  • Select vs. ultimate
Life Insurance
Family Insurance
My agent told me once I had enough cash in my policy I could borrow my premiums and even take distributions tax free to supplement my income.

Beware the serious problem of “overborrowing” causing the policy to lapse before it matures. The consequence of that is a nasty letter from the carrier to the IRS for an amount equal to the loan on the policy which would be considered forgiven. That amount will be considered ordinary taxable income to the policy owner. At that point, truly phantom income.

It would not be worth my time to change my existing polices for new ones.

Case studies…Average cash benefit from change

Certainly not all polices should be changed, but after a diligent review, approximately 70% of polices have significant upside for considering changing.

It is too costly, difficult, and time consuming to get a proper review

It actually takes very little of your time. The simplifies process of obtaining permission to review your health history and do a full policy review is not something we charge for. It only requires signed authorizations to allow us to collect the data.