Jeff Dattolo and Dave Buckwald of Atlas Advisory Group in New Jersey share their insight into what is causing the “perfect storm” in the life insurance industry and outline steps advisors can take to identify the best possible solutions for clients.
Four trends influencing life insurance rate increases for policyholders:
- Interest rates have been declining and have been at historic lows for over a decade.
- Squeezed policy crediting rates [versus guaranteed minimum crediting rates].
- Rising cost of insurance rates.
- People are living longer and paying more to keep their insurance coverage.
Six steps a trusted advisor can take in an independent policy review:
- Review the policy’s crediting rate.
- Review the carrier’s financial strength.
- Review product charges that impact performance.
- Stress-test policies with downside scenarios.
- Assess the client’s ability to fund the policy.
- Perform a detailed product comparison.