Contrary to popular belief, not all life insurance companies are the same. Buying similar plans can end up with dramatically different results later on, depending on the quality of the organization issuing your policy.
When we conduct an independent policy review, an important part of our process is checking out the issuing company. On the outside, that policy may look the same as many others. On the inside… it’s another discussion altogether. There can be a big difference between a good and a mediocre company – potentially leaving your loved ones at risk at a time when they’re most vulnerable. You see, depending on the state of the organization you’re buying your policy from, you may receive major differences in customer service, reliability, and efficiency. This can lead to unintentional policy lapses, and unreasonable hurdles to try and get things back on track
Here’s an example; both Jack and Fred unintentionally allowed their policies to lapse. Fred’s policy is with a company that is under some financial stress. Just trying to begin the process of reinstating was difficult. Long waits on hold, not receiving the forms as promised – that sort of hassle.
Fortunately, Fred is still in good health. As a result, we were able to identify a top 10 percentile company that was much more favorable for Fred. We were able to get a better policy issued in less time than it would have taken the original company to reinstate the old one.
By contrast, look at Jack’s experience. His health is not as good as it used to be, but the policy was issued by a top tier insurance company. Even though we were required to fully disclose the change in health, their response to our request to reinstate was both concise and timely-and they reinstated the policy even though they could have declined to do so!
Why the contrast? Here’s my theory. Fred’s company is under some financial stress. If Fred’s policy lapses it benefits them. They no longer have the premium coming in, but to balance it out they no longer have the big financial obligation to pay. Therefore the liabilities are less, reducing the financial stress. More and more we’re seeing this kind of thing happening. Even if it’s not deliberate, I suspect there’s little motivation to do a better job of keeping that business on the books.
Contrast that with Jack’s company. Financially strong, they still manage their business for the long run benefit of both the company and its clients. Over time, it benefits both parties to continue the relationship.
In the end, both Jack and Fred’s story ended up much better off than it could have. Both are now with a quality insurance company that has their back. Just like Stratus has your back. Without our assistance and independent policy review, neither they nor their beneficiaries may have ended up as well off as they now are. That’s the value in leaning on a professional to take a closer look. It provides you with the confidence your policy will do exactly what you need it to do – so that you can focus on what’s most important.
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 life insurance questions and provide the clarity you need to sleep easy. Learn more about our services or join our newsletter today. To contact us, click here.