Waxman, Cavner, Lawson
6850 Austin Center Blvd, Suite 350 | Austin, TX 78731-3132 | Phone: 512.476.6392

The life insurance review and market study

  • Are your policies performing as originally expected?
  • Life expectancies are increasing. Shouldn't life insurance prices be falling?
  • Do you even have the right policy for your needs?

The life insurance industry has changed since you bought your last policy. New products have been developed. Prices are falling, yet many policies are still underperforming. Meanwhile, your goals may now be different.

The old "buy it and forget it" mentality no longer applies. Data shows that nearly 70% of all life insurance policies can be improved.

We provide an objective, third-party assessment of the life insurance you own to assure that your insurance is suited to your financial goals and that you are getting your money's worth.

Why a review and market study is to your advantage.
The cost of life insurance has declined since you bought your last policy.
Life expectancies are increasing and medical care is improving, making new life insurance policies less expensive. If you haven't reviewed your life insurance policy recently, you may be paying too much for your coverage.

Many policies are underperforming.
Due to several years of low interest rates and uneven market performance many older policies may not be performing as originally intended. The cash value of your policy today may not be what you thought it would be when you bought it.

The risk of liability for trustees who hold trust-owned life insurance is now a serious issue.
Although many do not realize the risk, trustees have a legal duty to monitor trust-owned life insurance. We can help trustees implement "best practices" for policy management and improve the likelihood of a favorable outcome for beneficiaries.

Substandard health risks are now insurable.
Due to advances in medical care, many conditions such as heart disease, cancer and diabetes may not be considered standard risks.

Funding Strategies have changed.
Innovative policy designs and funding techniques may be better suited to your financial situation, particularly for the sophisticated client with complex needs.

Not all products are created equal.
Special lower-priced products have been created specifically for the high net worth marketplace based on favorably actuarial statistics for this group.

What is included in a life insurance review and market study?
We open the "black box" of life insurance and provide information to trustees, advisors and insureds so you can make an informed decision about life insurance. Reviews are provided either as an accommodation for existing clients, or on a fixed fee basis.

The insurance review is a written report that typically includes:

  • Needs assessment relative to client objectives.
  • Detailed policy summary including a review of policy ownership and product type.
  • In-force-projections of future cash values and death benefits based on to-date results compared with original expectations.
  • Evaluation of the underwriting class based on current medical information (to be provided by the insured) and assessment of the possible rate class improvements for existing policies.
  • Evaluations of the policy charges and assumptions and their impact on performance.
  • Evaluation of the insurance company's current financial ratings and outlook.
  • Recommendations to bring current policies in line with initial expectations, if policies are underperforming.
  • Evaluation of funding strategies, including split dollar arrangements and third party financing.
  • Restructuring strategies such as consolidation, §1035 (tax free) exchanges, face amount decreases, or sale of policy to third party (when coverage is no longer needed).
  • A comparative survey of current insurance products to determine most favorable pricing.

The end result is an understandable and objective evaluation of your insurance - a clear roadmap for the future.

Implementing my recommendation
If the purchase of new insurance is appropriate, you may elect to purchase your insurance through . If so, we will coordinate with your attorneys, CPA, and other financial advisors to implement those changes. Periodically we will review your policy's performance with you and your advisors to ensure your coverage continues to meet your needs.