Exit Strategies
Proven planning techniques that provide policy owners with choices and flexibility when a policy is no longer needed or becomes too costly to maintain.
Make your policies work for you.
If a life insurance policy’s purpose and your goals do not align, policy improvements and exit strategies should be considered.
Short-Term & Long-Term Planning
For short-term planning, especially when considering an abbreviated life expectancy, it might be clear if a life insurance death benefit exceeds the need. For long-term planning, a consistent, holistic plan can provide protection from political or market volatility and future pricing increases.
Premium Fatigue
If income or net worth has changed, then premiums might not be affordable. Alternatively, unexpected additional premiums might be assessed for underperforming policies.
Whole Life Product Rigidity
Whole Life policies have premiums that must be paid. If a premium is skipped, the insurance carrier can take a premium loan from the cash value. These premium loans accrue interest and decrease the death benefit amount. A policy that has accrued loans plus interest over several years of skipped premiums might be depleting the death benefit.
CUSTOM PLANNING
Exit Strategy
1
Data Collection
Heirmark will gather policy data from the insurance carriers on your behalf. Medical evidence will also be gathered and submitted to life settlement brokers or insurance carriers for evaluation when requested.
2
Determine Optimal Path
Heirmark will evaluate the policy data and any life settlement or life insurance offers, completing a comprehensive summary for review, so all parties can make an educated decision about the best option for each policy.
3
Finalize Decision
Heirmark will prepare and submit any applications and paperwork to make the changes then finalize the modifications and monitor any applicable fund transfers.
4
Ongoing Reporting
For life settlements, the policy owner will need to complete ongoing annual reporting for the entirety of the remaining policy duration.
Life Settlements
A planning technique that includes the sale of a life insurance policy to a qualified institutional buyer in exchange for an amount that exceeds the cash value.
Policy Loan Rescue
A planning technique that is used to reduce or eliminate a policy loan.
Repurposing a Policy
A planning technique that takes an existing policy designed for one purpose and adapts it to address a new issue, context, or goal.
Paid Up Policy
A planning technique that eliminates premium payment obligations in exchange for a decreased death benefit.
Term Conversion
A planning technique that allows the policy owner to exchange a temporary policy for a permanent policy without a new medical exam or proof of insurability.
Policy Surrender
A planning technique that terminates a life insurance policy early, allowing the policy owner to exit coverage. For a permanent policy, the cash value is received, subject to surrender fees and tax liabilities.
Faqs
Frequently Asked Questions
Find answers to your questions about Heirmark's life insurance solutions, underwriting process, and advisory services.
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The short answer is maybe. Insurance carriers are hoping that you will surrender your policy, because it is lucrative for them. Paying premiums into a permanent policy just to receive the surrender cash value is not always the best option for you. Exploring exit strategies might help you receive a better return on your investment.