Nonprofit Tidbits...
for nonprofit organizations and those who support them.

May 2020

Two Tidbits ago, I wrote about the relaxed medical requirements sufficing to approve a life, long term care and/or disability insurance policy. Opportunity.

One Tidbits ago, I wrote of the limitations placed on certain applicants, for whom, a policy will not be approved in the near term, under any circumstances, relaxed requirements or not. Restriction.

This issue of Tidbits brings us back to opportunity.

The industry is clearly seeking balance as it rotates from opportunity, to restriction, and from restriction, back to opportunity. Following the bouncing ball, has never been more challenging. If my guidance seems to be all over the map, it is, as the industry navigates through this period and demonstrating that more than one position taken, can be true at the same time.

So, with that as background...

Can you/your clients get something for nothing in the life insurance world? Sort of.

Properly re-designed, high cash value life insurance policies can produce tremendous leverage and increased coverage through a transfer of existing cash value from an existing policy, to a new policy, with no additional out of pocket costs. This is not breaking news as any seasoned planner certainly doesn't need me to describe a 1035 exchange.

What may be news to you, however, is guidance as to which policies may likely produce such favorable leverage/results for your clients. So, to make this easier for you...

While every policy ought to be reviewed for this opportunity, those that are among the strongest candidates for success include....

1. Mass Mutual
2. Guardian
3. Northwestern Mutual
4. New York Life
5. Penn Mutual
6. Minnesota Life

Before anyone, particularly those who represent these leading carriers, cry "foul", my identifying them by name, is in no way to disparage or discredit them. On the contrary. I admire them all for the value their policies create, thus making policy exchanges and planning enhancements, possible.

To be transparent, clear and balanced, not every policy reviewed, will produce a favorable result, and not every policy that produces a favorable result, should necessarily be exchanged. Trading roles, however, if you were the client, would you want to be told your options? Would you want your planning to change as your goals and objectives change? As a trusted advisor, wouldn't you prefer that your client first learn about opportunities through you, rather than through a colleague, a friend or a competitor?

If a check with your beneficiary's name on it, fell from the sky and landed at your feet, would you pick it up? (The most recent exchange I completed, resulted in a 28% increase in death benefit).

I am proposing a "no cost", "no lose" and possibly "much to gain", review/analysis.

Has there ever been a better time than now, in a pandemic world, to find "new money?"

Call/email if you care to explore.