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Free Policy Review & Forensic Analysis
Life
Insurance
Summary Sheet
Life
Insurance
Underwriting Form
Life
Insurance Underwriting Process
Variable
Rescue
Corporate
Issues
FAS
150
Profit
Sharing Plans
Pensions
and 412(i)'s
LIFE
INSURANCE HOMEPAGE
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Variable
Rescue Plan
When variable contracts have underperformed, clients have some options
open. Variable contracts carry greater expenses than fixed contracts
(average 150 basis points), therefore rates of return have to be
consistently much higher than a fixed product. Also, the funds themselves
carry additional internal charges.
The steps to evaluate the rescue plan are:
• Determine insurability.
• Determine proper insurance amount and objective (cash value
maximization, death benefit).
• Reevaluate ownership and beneficiaries.
• Order in-force runs on existing policies at 8%, 6%, and
0% gross rates of return.
• Do “apples to apples” comparison to fixed product
(Whole Life) matching future premium deposits and rollover cash
value.
• Lower interest rate/dividend rate 100 basis points to determine
fixed product volatility.
• If 1035 Exchange makes sense, file replacement forms and
order medical exam and Attending Physician Statements.
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