Stratus Life Insurance Case Study: Now Is The Time

Last year, we interacted with a potential client who was interested in using our Independent Life Insurance Policy Review service, but he didn’t have the urgency to move forward just then. Almost a year passed before he felt ready to take a closer look at his portfolio. What we uncovered was a problem that could have been avoided with a timely policy review.

The Problem:

Turns out one of the life insurance policies had lapsed a few months earlier. It hadn’t been managed or serviced by anyone since it was purchased 8 years ago. Three things contributed to its demise;

  1. The family had moved but the address had not been changed. Jim never received the notifications sent by the insurance company.
  2. The policy had severely underperformed the initial performance goals.
  3. The insurance company had raised the internal charges. (We’re seeing this issue more frequently than we used to.)

The biggest problem, of course, is that Sharon and the kids are currently protected for $1 million dollars less than they should have been-and didn’t even know it. Had we been able to identify this outcome in advance we could have helped prevent it.

The Solution:

We urged Jim to reinstate the life insurance policy and helped him get the necessary forms and information to do so. However, the insurance company wasn’t being responsive in getting this corrected. In the meantime, the family is still protected for less than they should be.

As a result, Jim has already availed himself of our benchmarking service. We have vetted offers from over 25 other life insurance companies to find the best alternative available. If there is one, we will most likely be able to get the required coverage back in place quicker than waiting for a sluggish reinstatement process.

The insurance world can be difficult to navigate. If you are uncertain if you have the right life insurance coverage we can answer your questions and provide the clarity to sleep easy. Learn more about our services or to schedule a free 15 minute consultation call 951-823-8100 or click here.

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