Here’s a very recent example:
In March one of our attorney partners was redrafting a succession agreement for a business client. As team members, we were asked to review the existing insurance policies. Our analysis showed they were both excellent and deserved to be retained. The total amount, however, was $500,000 short of the amount needed to fund the new agreement properly.
We were asked to put on our benchmarking hat and find the most suitable policies to complete the funding. We went through a total of 27 companies to identify the best two options. As expected, we made it easy for our partner and his clients to select what was clearly the best option for their needs.
That’s not the end of the story. Here’s how the math worked against the insurance company:
In April, the new policies were put in place, and both partners got preferred rates. In July, one of the partners lost 15 lbs. for no discernable reason. He was actually quite happy about that and feeling fine.
In August he started feeling sick and lost even more weight. His wife made him go to the doctor. After all the tests, his doctor told him to be sure his affairs were in order. The cancer was fast-moving and inoperable.
In April he was fine! Just last month, I was at his funeral.
Here’s the bad news and the good news:
He was taken from his family and his business 30 years sooner than anyone would have guessed.
However, both the family and his business will go on as he’d hoped, thanks to his attorney’s updated documents and the insurance review. They will continue to deal with the shock and the loss, but from the solid financial base that was needed. There’s no sheriff knocking on either door, and his dreams and vision will continue.
The insurance company only took in $20,000 for that policy but they’re going to pay out $480,000 more than they’d received. So, sometimes the insurance company does get the short end of the stick. And our partner was able to provide what was needed for his client. My sense is the partner and the insurance company did what was required of them. Then, even in a terrible loss, the business and the family won.
Independent Policy Review
The insurance world can be difficult to navigate. Without a clear understanding of their current plan, it’s difficult to be certain that your clients have the right coverage. If you’d like to take a closer look, you’ve come to the right place. We can answer your life insurance questions and provide the clarity you need to sleep easy. Learn more about our services or join our newsletter today. To contact us, click here.