Real-world case studies demonstrating the value of expert life insurance consulting.
A gentleman has a $2,000,000 mutual whole life policy with an $800,000 loan. He and his wife weren't even aware of the loan until recently because his agent wasn't helping manage the policy and the trustee didn't understand what was going on.
A family office called me in to review and analyze a proposed premium finance deal. After gathering the details of what the family was trying to accomplish and requesting presentation materials, insurance ledgers and financing term sheets, I dove into it.
An estate planning attorney introduced me to a client of his who was the trustee of her parent's irrevocable trust that owned a $4 million dollar second-to-die policy. As is typical in these scenarios, the trustee understood very little about the insurance.
Some success stories are more fun to share than others. This is one of them. Sometimes this work is so fun that I (almost) feel guilty getting paid for it. I want to start with the premise that there is a difference between idiots and criminals.
The life settlement market is clearly much different than it was 10 years ago but it is still alive and well. The target for finding a qualifying policy is much smaller today but the parameters were likely somewhat unrealistic back then anyway.
An attorney member of the Wealth Council posted a question on the list serve asking for referrals to a fee-based life insurance advisor. Another member directed him to me and I ended up in an engagement with his client.
Sometimes people ask me what I mean when I say life insurance needs to be managed over the duration of the contract. Most think that means making sure the premiums are paid but, while obviously important, that's not really it.
Through experience, an accountant relationship of mine has learned to pass just about anything related to life insurance by me when he sees any clients dealing with something. Usually this is initially a simple phone call on a generic basis.
An attorney brought a case to me which was typical in many respects. There was a portfolio of policies on multiple family members. Some policies had recently failed and, among the balance of them, some were holding their own and others were rapidly falling apart.
Through experience, an accountant relationship of mine has learned to pass just about anything related to life insurance by me when he sees any clients dealing with something. Usually this is initially a simple phone call on a generic basis.
The attorney for a billionaire family called me one day at the behest of a mutual acquaintance. The clients were looking to procure $100,000,000 of new coverage and simply wanted a second opinion.
In my May 12th, 2015 post, Why Paying Attention is Important, I referenced a hypothetical issue which has just come across my desk in real life. It has to do with a Guaranteed Universal Life (GUL) policy and the timing of premiums.