Case Studies

How does it actually work when we get involved? Here are a few examples of the ways it actually worked when we helped people — sometimes even rescuing them from the brink of disaster.

An attorney adds even MORE value to his clients

SITUATION: An attorney asked us to evaluate policies for one of their business clients.

PROBLEM: These policies hadn’t been evaluated since their purchase 12 years earlier. One of the owners had been diagnosed with significant health issues. They remembered a guaranteed option which protected their ability to change to a different policy at a preferred rating. They were unaware, however, that the option had expired two years earlier. That guarantee was gone.

SOLUTION: We were able to find another company that would approve the coverage they needed, but at a much higher cost than would have been available to them just two years earlier.

OUTCOME: Wanting to help the rest of his clients avoid problems and be truly safe, the attorney now has us conduct policy reviews and benchmarking every 5 years for each of his clients.

We made SURE the policy would be there when it counted

SITUATION: A CPA asked us to evaluate the Long Term Care policy for one of his clients.

PROBLEM: We discovered the policy provided good coverage for the client’s needs, but the underwriter was becoming more financially unstable each year. This would put the client at risk of losing her policy at an age when it would be more difficult to get a new one.

SOLUTION: All the good alternatives were prohibitively expensive. It didn’t make sense to start over. We were able to add some supplemental coverage and diminish the overall risk.

OUTCOME: The client is safer now, and we continue to monitor the program on an annual basis.

Increased coverage AND lowered costs? You bet we did!

SITUATION: A wealth advisor had us review the insurance portfolio of one of their clients. No review had been completed for 18 years.

PROBLEM: We unearthed overlapping benefits, gaps in coverage, and incorrect beneficiary designations.

SOLUTION: A review enabled the client to increase total coverage by 20% and significantly decrease annual costs.

OUTCOME: The client was delighted at the result and referred several other clients to their wealth advisor. We’re glad to be part of the team there.

A little less expensive wasn’t good enough — WE KEPT GOING

SITUATION: A CPA partner asked us to review a policy for one of her clients. The review showed the client had been paying the $17,000 annual premium like clockwork.

PROBLEM: Even with those timely payments, the policy was going to end in only five more years. We were able to pinpoint the fact that it would take $29,000 a year for the policy to continue to age 100.

THE SOLUTION: The client asked us to benchmark this policy. Was there a better alternative? Within two days, we found a great company that would continue the death benefit to age 120 for $15,000 a year! But we didn’t settle there. After continuing to shop other options, we found an offer from another fine company to continue the coverage to age 120 for $7,000 a year.

THE OUTCOME: Both the CPA and her client were delighted, and we were able to go home that night knowing we’d helped make the world a better place for both the client and their CPA. That’s what we do here at Stratus, one policy at a time.

Two out of three DOES NOT cut it

SITUATION: Several years ago, at a program we attended, we learned the shocking statistic that over 80% of existing life insurance policies were not expected to end with a death claim. Even if that number was only 10%, it’s too large. And in the majority of cases we review, it’s an avoidable and correctable issue.

PROBLEM: About that time, three clients brought us their life insurance policies for review. After our Stratus Policy AssessmentSM, we knew that these policies were not going to work when they were most needed. We quickly uncovered what was required to fix two of them. As a result, each client now knew exactly what was required for their policies to be operational when really needed.

That third one? It was too late. Had we been allowed to review this policy three or four years earlier, there would have been options. There was no getting around the fact that this life insurance policy was going to implode. In fact, after one more month, it was going to disappear. The insured and the beneficiaries would still be in place but without the level of protection they anticipated.

SOLUTION: This is where an independent policy review comes in handy. It’s not enough to assume the policies are going to be there years into the future.

OUTCOME: Anticipating problems prior to their occurrence is paramount. This not only promotes peace of mind for both the insured and the beneficiary, but it makes certain that the coverage expected will actually be there once it is needed.

Better late than never

SITUATION: We visited with a potential client who expressed interested in having us conduct a thorough Stratus Policy AssessmentSM.

PROBLEM: Unfortunately, they didn’t have a sense of urgency to move forward just then. Almost a year passed before this client felt ready to take a closer look at his portfolio. What we uncovered was a problem which could have been avoided with a timely Policy Review.

SOLUTION: We helped the client obtain the necessary forms to apply for reinstatement. In the meantime, the family was protected but for less than they anticipated.

OUTCOME: The client availed himself of our benchmarking service. We vetted offers from over 25 insurance companies unearthing the best alternative for this client. Once we discovered the best option, the decision was to purchase a new policy which offered the full benefits they wanted versus waiting for the sluggish reinstatement process.

NOTE: These are hypothetical situations based on real life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.