Webinar Recap: Is Your Policy Up to PAR? (Video)

Here’s a quick pop quiz for you: on average, how much time do you spend maintaining your car each year? How about your home? The answer may vary from one person to the next, but we’re willing to bet that it’s more than a few hours. In fact, you may spend days or even weeks of time taking care of these assets — and that’s more than understandable. After all, our cars and homes are significant investments that are essential to our everyday lives.

Now, here’s a follow-up question: do you devote the same amount of time to thinking about your life insurance coverage? If you’re like most people, your most recent memory of your life insurance policy might be the day you purchased it. If that’s the case, you’re far from alone.

But simply having a policy isn’t enough.

People who “set and forget” their life insurance assets could be missing out on opportunities to cut costs and secure better coverage for their needs. In the most recent installment of our OneBite® Webinar series, we explored the risks that can arise from unmanaged life insurance policies and how you can put your coverage to the test, using our unique Policy Audit and Review (PAR) Process.

Scroll up to get a full replay of the presentation, and keep reading to access more resources that can help you take action today.

What Are the Risks?

An unmanaged life insurance policy can bring its fair share of consequences, which can put a dent in your bottom line, or worse, leave your family or business unprotected against the unexpected. Here are five of the most prominent:

1. Return Underperformance: The cash value of your life insurance policy could earn less than what you initially expected over the long term — which ultimately affects the size of the payout your family or business associates would receive if something happened to you.

2. Counterparty Risk: Over the past decade, the life insurance marketplace has experienced numerous shifts, and some well-known carriers have seen a decline in their credit ratings. This could have a significant impact on you, your family or your business, if you have a cash value life insurance policy with any of those companies.

3. Policy Loan Risk: Your life insurance payout can be reduced or exhausted over time if you continually borrow against your policy or can no longer meet the premiums. If the policy loan is sizable, you would likely have to pump money into your policy to avoid a lapse, which could also come with hefty tax consequences.

4. Incorrect Ownership or Beneficiary Arrangements: If your policy is outdated, your beneficiary information might also be outdated — which means your policy payout could go unclaimed or even end up in the wrong hands after you’ve passed.

5. Failure to Keep Up with Needs: You purchased your life insurance policy for a reason — whether it’s income replacement in the event of your death or to protect against the loss of a key contributor to your business. But do the same reasons apply today? In other words, have your needs or goals changed since you first purchased the policy? If the answer is “yes,” there’s a chance your policy doesn’t suit your life situation anymore, which means it’s probably time for a change.

What’s the Solution?

During the webinar, we explored a few different routes you can take to manage an outdated life insurance policy, including one of the most common: exchanging the current policy for a new policy.

Take a quick look at the graphic below — if you purchased a policy 10, 20 or even 30 years ago, the life insurance marketplace probably looked pretty different compared to today. From advances in technology to new products and strategies, the industry has evolved immensely over time, bringing more options, cost-efficiency and transparency to consumers.


So, does your policy still measure up? Here’s where the PAR Process can come into play.

How can you benefit from the PAR Process?

Together, our team will review and gain a complete understanding of your existing policy, your financial needs and current situation, and what you can expect for pricing on alternative life insurance options. They’ll compile these findings into one, easy-to-follow report for you to review, plus a straightforward action plan for implementing their recommendations.

Ready to get started? Click the button below to contact our advisory team directly.


Turn Knowledge into Action

Download the webinar resources to get a head start on the planning process and improve your life insurance coverage for the long term.

Wipfli Financial Advisors, LLC (“Wipfli Financial”) is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC); however, such registration does not imply a certain level of skill or training and no inference to the contrary should be made. Wipfli Financial is a proud affiliate of Wipfli LLP, a national accounting and consulting firm. Information pertaining to Wipfli Financial’s management, operations, services, fees and conflicts of interest is set forth in Wipfli Financial’s current Form ADV Part 2A brochure and Form CRS, copies of which are available from Wipfli Financial upon request at no cost or at www.adviserinfo.sec.gov. Wipfli Financial does not provide tax, accounting or legal services. The views expressed by the author are the author’s alone and do not necessarily represent the views of Wipfli Financial or its affiliates. The information contained in any third-party resource cited herein is not owned or controlled by Wipfli Financial, and Wipfli Financial does not guarantee the accuracy or reliability of any information that may be found in such resources. Links to any third-party resource are provided as a courtesy for reference only and are not intended to be, and do not act as, an endorsement by Wipfli Financial of the third party or any of its content or use of its content. The standard information provided in this blog is for general purposes only and should not be construed as, or used as a substitute for, financial, investment or other professional advice. If you have questions regarding your financial situation, you should consult your financial planner, investment advisor, attorney or other professional.
OneBite Editorial Staff

OneBite® is a Top 50 Financial Advisor Blog powered by Wipfli Financial Advisors. Founded in 2011, the digital magazine is dedicated to providing intelligent, in-depth coverage and analysis of the top financial and economic issues facing investors today.

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Webinar Recap: Is Your Policy Up to PAR? (Video)

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