Buy and Hold: A Common Life Insurance Mistake
Many clients come to us with the same story: they purchased life insurance years ago and haven’t looked at it since. It’s in a safety deposit box. It’s filed away in a relative’s paperwork. It’s with their attorney. These important financial instruments are not static – as they languish, they change. Often they change suddenly with devastating results.
Will you pull a worthless policy from your attic? Buying and holding life insurance for long periods of time can have serious unintended consequences:
- Premiums suddenly jump thousands of dollars – as benefits drop by tens of thousands.
- You don’t receive the premium relief you expected.
- Premium payment dates slip, negating guarantees you thought were certain.
- Guarantees aren’t guaranteed anymore – that expiration date was in the fine print.
- Your policy is about to lapse and you have survived past the policy’s age limit.
- The policy’s cash value is slowly trickling away as you blithely and automatically pay annually – so you have little to show after investing years of expensive premiums.
- Your designees are not administering the policies correctly or are unaware of new legal regulations.
- You’re missing the substantial benefits of new insurance products that have improved on older policies.
Instead of losing with a buy and hold strategy, you could audit and win:
- Fund your retirement
- Provide for long-term care
- Boost cash value
- Borrow money tax-free
- Pay a relative to care for you in your home
- Pay lower premiums for better coverage
Correct the buy and hold mistake with our expert, independent audits.