for nonprofit organizations and those who support them.
The following “math” equations will determine if your clients’ life insurance policies will end up in a death benefit, in a lapse, and/or in a court of law.
Underfunded Policies (UP) + Overly Aggressive Projections (OAP) + Policy Neglect (PN) = Unintended Policy Lapses (UPL)
Unintended Policy Lapses (UPL) = Life Insurance Company Windfall (LICW) = Beneficiary Disappointment (BD)
Properly Funded Policies (PFP) + Appropriate Policy Designs (APD) = Beneficiary Satisfaction (BS)...oops, sorry for this UP (Unintended Profanity)
Disinterest in Policy Service (DPS) + Ongoing Agent Renewal Income (OARI) = Selling Agent Disengagement (SAD...yes, it is)
Beneficiary Disappointment (BD) > Beneficiary Satisfaction (BS) = Possible Litigation (PL)
An awareness and action around these issues, are often the difference between a Completed Plan As Anticipated (CPAA), and a Very, Very Unhappy Client (VVUC)
Insist that your client’s agent, complete a policy review, or help them find someone who will. The current, abysmally low interest rate environment, coupled with recent market losses, is stressing policies as never before.
Sadly, there is no requirement or obligation that the agent who collected the commission at the policy point of sale, return to complete a meaningful, purposeful policy review. The risk falls not on the agent, but on your client, to ensure that his/her policy does not become a UPL.
You do the math.