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Who manages your life insurance portfolio to make sure you are optimizing it and avoiding financial risk and fiduciary liability?

Life insurance has become one of the most complex instruments in the financial world. As a result, specialized insurance expertise is now an absolute requirement of prudent financial management for businesses, trusts, family offices, non-profit organizations, as well as for the professional advisors of wealthy individuals. Many policy owners do not realize that older policies which are not reviewed regularly can pose significant risk even if premiums are paid on schedule.

Outsource Insurance Services, Inc. has developed a three part Policy Review and Management System we call the “Three R's”: Review, Restructuring, and Remediation. Each phase is critical, and all three are required in order to provide a complete program to protect and optimize the value of life insurance policies.

The Policy REVIEW phase identifies which policies need to be fixed.

The Outsource Policy Review is a comprehensive policy audit which illustrates the factual information of the policy:

• the owner
• cash value, ROI, and ROA
• policy performance
• potential problems related to loans
• policy guarantees
• projected policy lapse
• premium payment history
• quality of carrier
• possible fiduciary issues

This in-depth review compiles information obtained from the carrier and presents it in a report which is comprehensive and easy to understand.

The primary purpose of the Outsource policy review is to identify potential problems as early as possible so they can be corrected to minimize financial and fiduciary risk. This phase does not recommend how to resolve the problem, but simply identifies problems and evaluates the risks they pose to the policy.

RESTRUCTURING involves determining the options to fix the problems.

Once the policy review has identified a potential problem policy, the question becomes how to correct the problem. This is the RESTRUCTURING phase.

RESTRUCTURING involves developing options to solve the current problem. This could involve something as simple as paying off loans or increasing premiums to make up for reduced performance, or it could involve recommendations for 1035 exchanges, life settlement, termination of the policy or restructuring the coverage to suit current needs. Frequently, the goals of the original coverage have changed, or the policy structure and guarantees are obsolete or underperforming.

The client is presented with cost effective options to REMEDIATE the existing policy problem and to meet current policy goals.

REMEDIATION is fixing the problem.

REMEDIATION is implementing the solution to the problem. Outsource will handle all aspects of remediation to bring the policy and coverage into line with current needs and objectives to ensure the policy goals are met. This includes:

• assistance with changes in policy ownership, beneficiary, policy premium, death benefit
• policy replacement
• 1035 exchanges
• new underwriting
• policy and carrier selection
• premium negotiations
• premium financing structures