If we’ve ever been fortunate enough to enjoy a conversation, hopefully, I’ve learned something special about you, and you probably know I love classic cars! Life is just more fun when there’s an interesting car needing to be driven somewhere.
Take for example the 1958 Chevy Corvette C1. Just because I don’t fit in it doesn’t mean it’s not a significant car. But, as you see in the photo I do fit in a ’67 Sting Ray. Before that Sting Ray, as Men’s Journal so masterfully points out, the ’58 Corvette C1 really made things happen in the American Sports Car game. The model came with quad headlights, a leaner and meaner grille, and it featured an updated interior. Importantly, beyond all the upgrades from the ’57, that car finally turned a profit!
Today’s cars have evolved a lot since then. They’re faster, quieter, and safer. They get way better mileage. They’re more dependable and need much less service. Soon the Tesla won’t be the only car that can drive itself!
The price of all those advantages is much more complex. If it’s not running right, you can’t just lift up the hood and change the points. These days you need a computer and a trained technician.
I think life insurance policies are a lot like cars. They’ve certainly evolved over the years. Just as with modern cars, the tradeoff is much more complex. Unlike cars, however, the cost has gone down significantly.
When you bought a life insurance policy years ago, you did it with confidence and security in mind. That insurance agent you first worked with probably helped you feel more comfortable and safe about your future. If they’re still working with you, you are fortunate; you’re also in the minority.
Even so, your situation has probably changed since then.
The life insurance industry isn’t the same, either. That’s both good and bad. For example, if improved underwriting helps you get a more favorable rating class, that’s good. (One of our recent victories was identifying a standard rating on a very healthy person. With a little more information we were able to have the insurance company change it to a preferred non-smoker rating. Same policy, but the premium has been reduced going forward.)
On the other hand, if a company isn’t making the investment return, they’d anticipated there are several ways it can affect your existing policy. In one case we reviewed recently there was a 39% increase in charges, with no increase in premium. At first glance, it didn’t look so bad. After a thorough review, however, we determined the insured would now probably outlive their coverage. Not the result anyone was expecting – or wanted.
Stratus Financial Partners was created to stress test and benchmark your current life insurance portfolio. With decades of experience in the insurance industry, we exist to do the right thing for people – by putting their best interests first. We do not work for any insurance company-we work for you. There are no specific policies to push or quotas to be met. We just believe in doing the right thing, every time. (Our trained technicians can tell you what’s really going on under the hood.)