Millions of life insurance policies are falling apart.These were sold with performance based on interest rates, which have seriously declined, or investments, which have under performed. In most cases, the owner of the policy has no idea that there is a problem, and learns about it only when the policy requires more money or lapses. This has triggered a flood of complaints to departments of insurance and some lawsuits. Unfortunately, there is little relief available because multi paged policy illustrations were provided and warnings were buried in fine print. Agents would naturally be reluctant to call clients attention to these potential problems.

Fortunately there is a process for diagnosis and a solution to the problem. The process is a carefully worded request from the policy owner for an in force ledger.  This is directed to the policy owner service department of the insurance company - not the agent who sold it. It is critical that the request include a projection of the policy values under the guaranteed interest rate, or zero investment return, and the guaranteed cost of insurance or mortality charges. This will give you a clear picture of how your policy will perform under poor conditions and often reveals a disaster about to happen.

The solution is a new generaton of policies that  recognize longer life spans and can provide guaranteed death benefits to age 120 at much lower premiums than were once the case.  These policies recognize that life insurance must be in force at the time it is needed, regardless of market conditions.  Policies can be rescued that otherwise would have crashed and burned. A less dramatic, but equally gratifying result is the lowering of the premium or cost of maintaining coverage. In many instances, the cash in an older policy can fund a new one and eliminate that need for any further premiums.

Insurance benefits need monitoring just like any investment. Periodic evaluations can save you thousands of dollars and rescue coverage from failure. We are happy to provide samples of requests for policy information, and instructions in interpreting policy illustrations. Contact us at anadolna@associatesgroupinc.com