Client Advocacy

Riders Can Enhance Financial Planning

We pride ourselves on collaborating with our clients and their advisors to help ensure that our life insurance solutions enhance the bigger picture, focusing on planning and purpose, not just product placement.  Unlike other financial assets, the cost of an insurance policy depends on the health of the insured, so we cast a wide net and negotiate for the best possible rate for each client from a selection of quality insurance carriers. The placement of a life insurance policy marks the beginning, not the end of our client relationships. When we complete a life insurance acquisition, we deliver a promise to oversee the plan and policy we placed to help ensure that the insurance portfolio remains the best fit for years to come.

As longevity increases, financial planning must be stretched to fit the needs of those who live to age 100+. Riders are optional and can be added to an insurance policy to provide extra benefits. There are riders that temporarily increase the death benefit for trust planning, create an incentive to quit smoking, and add no-lapse guarantee features, among many others. Most riders have an additional cost that is added to the premium amount, which must be weighed against the benefit. When we consider longevity, we focus on two riders: Vitality Plus and Long-Term Care.

The Vitality Plus rider works for some insureds, but there is homework for the duration of the policy to make it profitable. The benefit of potentially lowering the premium of a life insurance policy by logging into an app to track points is appealing to some and cumbersome to others. This rider focuses on encouraging the insured to live a longer, healthier life. This is beneficial to the insured for obvious reasons but also benefits the insurance carrier by delaying the payout of the death benefit.

A Long-Term Care (LTC) Rider appeals to more people as longevity is extended. It is estimated that 50% of people who are currently 5 years old will live beyond age 100, and most of them will need help with their daily activities. LTC is applicable when an individual cannot perform 2 or more Activities of Daily Living (ADL’s). Adding an LTC rider (at an additional cost) to a policy can cover the cost of both home health care and care in a facility, whichever is preferred. If the LTC component of the policy is never used, the insured’s heirs will receive a death benefit.

Life insurance riders can enhance the living and death benefits of a policy. We advocate for our clients by suggesting riders when they are appropriate but also by explaining the cost, maintenance, and limits of each rider before they are included in the life insurance plan.

Contact us with any questions or opportunities to help you or your clients achieve identified goals. This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.