Life Insurance Financial Evaluations, LLC
Maximize Life Insurance Benefits


   
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 Late Stage Insurance Policy/Portfolio Management
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What is it?

Late Stage Insurance Policy/Portfolio Management identifies steps that can be taken to improve policy performance during the latter stages of life, such as reducing premiums by changing premium modes.  These steps are similar to those taken by life settlement providers who manage life insurance policies to maximize potential returns to their investors.  This analysis utilizes life expectancy calculations based on the insured’s health to determine the probability of living to certain ages.  The insurance policy can then be managed, subject to policy restrictions, to target the desired policy duration.

Why it is Important?

At death, life insurance policies only pay out the death benefits.  Any cash values in the policy are not paid out as benefits.  Therefore, in an ideal world, it is desirable to minimize policy cash values at projected mortality to reduce overfunding and increase the return on investment.  It is important not to be too aggressive in this analysis, being proactive and taking conservative steps to minimize cash outlays and increase benefits is prudent.

How do we do it?

Life Insurance Financial Evaluations, LLC uses proprietary Microsoft Excel financial models to compare life insurance policies by calculating expected rates of returns, equivalent taxable yields, and net present value of life insurance cash values and death benefits.  The results are then summarized in a written report.

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 Policy/Portfolio Surrender Analysis
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What is it?

A Policy/Portfolio Surrender Analysis examines the potential taxation and surrender charge impact on cash value internal rate of returns when a life insurance policy is surrendered.  Depending on the results, it may be prudent to explore other options such as modifying the policy, delaying the date to surrender, or considering a life settlement.

Why it is Important?

A surrender analysis helps policyowners determine whether or not it makes financial sense to surrender a policy.  Surrendering a life insurance policy may not be prudent or provide the highest value to the policyowner.  When surrender charges are present, it may be beneficial to delay the surrender to enhance the value received.  In addition, a surrender analysis may identify other alternatives such as life settlements that could provide higher values.

How do we do it?

Life Insurance Financial Evaluations, LLC uses proprietary Microsoft Excel financial models to compare life insurance policies by calculating expected rates of returns, equivalent taxable yields, and net present value of life insurance cash values and death benefits.  The results are then summarized in a written report.

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 Policy Valuations for Life Settlement Considerations
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What is it?

A Policy Valuation for Life Settlement Consideration provides an analysis of the net present values of a life insurance policy based on various mortality risks and interest rates.  This analysis is helpful when considering whether a life settlement is a viable option and can assist in determining a fair value of a policy when a policy sale is under consideration.

Why it is Important?

A policyowner who wishes to sell a policy needs to understand the policy valuation based on various underwriting classifications and inherent interest rates.  With this information, the policyowner may negotiate a higher selling price, thus ensuring fair market value is received.  When an investor is willing to pay more for a policy, this may indicate that keeping the policy is a prudent decision - assuming the policyowner has adequate funds to keep the policy inforce.

How do we do it?

Life Insurance Financial Evaluations, LLC uses proprietary Microsoft Excel financial models to estimate the value of a life insurance policy based on various life expectancy estimates and interest rate assumptions.  The results are summarized in a written report.