- The Pandemic. Many life insurance carriers have made obtaining coverage easier during the global pandemic - several carriers have NO exam options and are accepting electronic applications to secure coverage quickly and completely touch free. This dynamic and fluid situation could change at any moment.
- Deal Season. Like other businesses, many insurance carriers create special incentives to drive business at year-end. Special underwriting “deals” allow for better priced policies, especially meaningful for those with complex medical histories.
- Estate Planning Coordination. We have seen a significant rush to implement year-end estate planning strategies before the upcoming election. Many are concerned that our national debt and potential political changes could mean increased tax and reduced estate transfer limits. In light of all of this planning, remember to coordinate and secure the life insurance to fund the estate plan.
- Aging-Up. Insurance carriers actually “age up” applicants to an older age six months before their actual birth date. This is called your insurance age. Various strategies can be deployed to reverse this industry practice to save premium.
- Product Elimination. Insurance carriers often use year-end for eliminating and changing its product offerings. Sometimes products improve, but just as often new products have fewer features and can get more expensive. Especially today, guaranteed products are increasing in price with low interest rates.
Year-End Success Story.
Situation. Last year, we helped a 69-year-old couple secure a significant amount of life insurance to provide liquidity to pay their estate tax. During the initial underwriting process, we uncovered several underwriting concerns: the husband’s cardiovascular issues and use of marijuana to mitigate some undiagnosed pain, and the wife’s cancer history.
Recommendation. Our underwriting advocacy process allowed us to successfully market their application at year-end to seven insurance carriers. Six of the seven carriers rated the clients anywhere from standard to uninsurable. However, with one carrier, we were able to use a year-end program to secure a much less expensive preferred rate.
Success. The resulting approach at year-end secured a second to die policy resolving their estate tax issue and saved the couple over $6M in premium vs. their existing policy!
Please reach out to me. My team and I are built to help your clients optimize year-end opportunities. We are always available to help you identify the issues, navigate thru complex challenges, and resolve with a practical, intelligent solution.