Who Owns Your Life Insurance Policy?

It may not be who you think…

Last month another major life insurance company announced the sale of billions of dollars of existing contracts to a third party. It’s a good business decision for them. It’s all about it being a sound accounting opportunity.  It’s good for the insurance company and good for the investment-focused company that acquired those assets at a discount.

I’m not so sure in the long run, however, that it’s a good deal for the policy owner. After all, that’s who is expecting to benefit from the contract that was just moved away from where it was purchased in the first place.

In my role as a licensed life and disability analyst, I run across this issue far too often. The acquiring company is motivated to increase its rate of return by reducing costs. The policy is still in force, but the level of service, support, and guidance just isn’t as robust as it had been. Instead, now there’s someone at an 800 number with a script.

I’m not saying this happens in every case, but it happens a lot. The potential for keeping the consumer’s best interests at heart is less important than it was before. Having your life insurance policy reviewed by a licensed insurance analyst can give you clarity on a situation like this and, if there’s a problem, an understanding of how to avoid it.

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 client’s life insurance questions and provide the clarity they need 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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