Life Insurance Portfolio Management

Life insurance represents substantial family and business capital. It is tied to complex lifetime financial strategies, integrating personal and business philosophies, capital management goals and objectives, financial and tax circumstances.

It has become an actively managed asset - not simply a contract in a file cabinet. Most policyholders do not realize the opportunities they may be missing by leaving it there.

Life insurance offers advantageous flexibility

Policyholders have choices in policy design that can enhance performance and offer protection guarantees*.

Life insurance enjoys unique tax structure

Not only does capital grow income tax-deferred inside a life insurance policy, it creates income-tax free multigenerational capital in the form of the death benefit - and can be estate tax-free with the right ownership structure.

Life insurance has favorable cost factors

Life expectancy is the primary driver of the cost of insurance, so current longevity trends have lowered costs for policyholders and created new strengths for life insurance as a capital management tool.

Obtaining the data you need to manage these policy components is not easy because for now life insurance administration remains a paper process to protect consumers and issuers against potential fraud.

The most effective policy information is an in-force illustration. Assuming you knew where and how to request one, you would first have to wait for a paper copy to reach you. Then, assuming you could interpret the data, you would learn the present value of your policy with projections going forward.

But that's too much assuming so here is a better way to manage your life insurance portfolio. We bring a broader perspective and deeper insight to Life Insurance Portfolio Management.

First, we take into account all the changes your family and your business have experienced. Circumstances and needs change. Personal goals and timeframes change. Financial and tax positions change. And the financial landscape and the life insurance environment change. Every change can have an impact on your life insurance portfolio.

  • We evaluate your existing policies for suitability to see if they still track with the objectives you set when you bought them or even last year.
  • We analyze your existing policies for performance measures to see if they are meeting, exceeding, or falling short of projections and remain cost effective.
  • We examine company performance to make certain their financial strength continues to align with their guarantees*.
  • We compare existing policies to new policy choices to determine if there are more efficient ways to achieve the same goals.
  • We look for underwriting issues to determine if changes in health changes in underwriting standards could impact policy management decisions.

Life Insurance Portfolio Management combines these big picture issues with all the details driving life insurance value; in other words, the family and business capital held in policies in relation to your wealth transfer, wealth management, corporate benefits, and business transition planning.

This is what our knowledge and experience will mean to you over your lifetime and into the lifetimes of the generations that follow.

*Payments of guaranteed principal and income, as well as living and death benefit guarantees are contingent upon the claims-paying ability of the issuing company.