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Recent Cost Increase creates Planning Opportunities

Thursday, October 22, 2015

National Estate Planning Awareness Week (H. Res. 1499) was adopted by Congress in 2008 to help individuals understand the importance of proper estate planning, created through the assistance of qualified professionals, including but not limited to, the attorney, accountant, trust officer, and credentialed insurance and financial planners, all working together for the benefit of their client.

Over the past few months, at least 5 insurance companies have sent out letters to clients affected by increases to their life insurance policies. Some of these increases were aimed at senior clients whom are over the age of 70. These clients have very few options, they can pay higher premiums in order to keep their existing death benefit, they can maintain the same premiums but sacrifice some of their death benefit on the policy, or they can surrender or sell their policy. In order to help clients with these decisions you will need to review the policies and any changes with an inforce illustration and Veralytic Report.

National Estate Planning Awareness week gives you the perfect opportunity to illustrate the importance of measuring the costs of life insurance and also reviewing these costs periodically to make sure that the expectations of the policy are being realized and any unexpected changes are revealed.

INSPECT WHAT YOU EXPECT! Use a Veralytic Research Report to measure policy expenses as one of the 5 factors of suitability. If you(r clients) do not know what they are paying for cost of insurance charges (COIs), fixed administration expenses (FAEs), cash-value-based "wrap fees" (e.g., M&Es) and premium loads in their life insurance policy holdings now, then there will be no way to know if or when such policy expenses are increased. Now is the time to find out. 

Veralytic is the only patented, objective and rules-based research tool that goes beyond the overly-simplistic comparisons of illustrations of hypothetical policy values that can be considered “misleading” and “inappropriate” by both financial and insurance industry authorities. Veralytic’s independent research reports provide a facts-based solution that is both compliant with industry regulations and established case law.

Veralytic is simply the fastest, easiest, and most comprehensive and cost-effective way to independently verify to clients and their advisors whether or not the pricing and performance of existing or proposed life insurance is in their best interest.  Only Veralytic is accepted for independent client representation, endorsed by the New York Bankers Association (NYBA) and compliant with industry regulations and established case law. 

Use the Veralytic Reports to determine the appropriateness of pricing, the reasonableness of performance expectations for invested assets underlying policy cash values, and overall suitability for your (client’s) policies based on the 5 factors of suitability.  Get up to 3 Veralytic research reports under our NO-Risk trial subscription.

re: Recent Cost Increase creates Planning Opportunities

Saturday, October 24, 2015 Ben Baldwin


Now may be the time for a GPT v. CVAT column.  Increasing COIs causing policyowner to seek alternatives could create a catch 22 in those folks who chose or defaulted into GPT defined life insurance policies.  Adding premium or reducing death benefit could easily breach GPT limits and limit or prevent those solutions.

I would like to collect copies of letters to policyowners about their COI increases and what alternatives the companies are offering.  I will be happy to share what I am able to collect and I am hoping you and yours will help in the process.  The Veralytic Report will help challenge any impossible alternatives insurance companies may offer.

Thanks for all you do,




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