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YOUR INSURANCE PORTFOLIO: SERVICING | ANALYZING PERFORMANCE
Your insurance portfolio is dynamic. As such, it should be managed with the same level of attention as your stock or real estate portfolios. Each policy has issues and opportunities related to taxation, ownership, servicing and the financial marketplace. Schechter Wealth Strategies has a dedicated team focused solely on managing policies from both a service and market analysis perspective. We have detailed below the thorough management process we undertake on your behalf.
Your life insurance needs do not end with the placement of your policy. To perform efficiently and satisfy the goal of its original intent, your life insurance portfolio must be properly maintained. At Schechter Wealth Strategies, servicing your policy is as important as designing the right solution.
What Makes Schechter Wealth Strategies Service Different
Personal Representation: A dedicated Client Service Associate will manage your entire insurance portfolio, including policies issued by other agents if you so choose. This associate will serve as your liaison to the insurance carriers and will forward all important information directly to your attorney, CPA or investment advisor.
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A periodic and professional review of your insurance portfolio is imperative. At Schechter Wealth Strategies, we have developed a review process that permits our clients and their professional advisors to thoroughly understand their existing policies, discharge their fiduciary duty and evaluate any and all of their options.
Why You Need an Annual Review
Market Changes: Life insurance is a financial product subject to fluctuating market conditions. Changes in economic factors, such as interest rates or stock market performance, impact life insurance carriers' product design and pricing.
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Your life insurance needs do not end with the placement of your policy. To perform efficiently and satisfy the goal of its original intent, your life insurance portfolio must be properly maintained. At Schechter Wealth Strategies, servicing your policy is as important as designing the right solution.
What Makes Schechter Wealth Strategies' Service Different
Personal Representation: A dedicated Client Service Associate will manage your entire insurance portfolio, including policies issued by other agents if you so choose. This associate will serve as your liaison to the insurance carriers and will forward all important information directly to your attorney, CPA or investment advisor.
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Integrated Teams: Our Client Service team is closely integrated with our Advanced Design team to ensure that your portfolio is successfully managed from all perspectives.
Comprehensive Database: Our proprietary, computerized database stores your life insurance policy information and tracks all past and future tasks associated with your policy's maintenance. Key deadlines are monitored to ensure that your goals are met.
Schechter Wealth Strategies' Service Process
1.Solution Binder: A solution binder is
created, providing you with:
a. A clear, concise transaction memorandum outlining the strategy that has been agreed upon by all parties;
b. A spreadsheet (if applicable) provided by the issuing life insurance company, showing the expected future performance of the strategy;
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c. The policy(s) issued for the strategy; and
d. All executed documents.
2. Year-End Values: Your accountant may track the values of your life insurance portfolio. At your request, the Client Service team will obtain year end policy values from all life insurance companies and forward a comprehensive schedule of values for your policies to your accountant.
3. Premium Reminders: The Client Service team prepares a letter reminding you when your premium is due and requesting that you return your payment to Schechter Wealth Strategies in an enclosed prepaid envelope. We coordinate with the life insurance company to confirm payment is applied properly.
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4. Policy Maintenance: Your dedicated Client Service Associate facilitates any general policy service, from processing a loan request, beneficiary change or change of address to preparing Crummey letters and investigating alternative funding scenarios.
5. Annual Life Insurance Portfolio Review: Schechter Wealth Strategies has developed a comprehensive review process, utilizing The Schechter Edge TM, that enables you and your professional advisors to thoroughly understand your existing policies, discharge your fiduciary duty and evaluate any and all of your premium funding, loan, dividend, and settlement options.
Through our comprehensive service process, Schechter Wealth Strategies helps our clients to ensure that their insurance portfolio performs efficiently and continues to meet their needs
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A periodic and professional review of your insurance portfolio is imperative. At Schechter Wealth Strategies, we have developed a review process that permits our clients and their professional advisors to thoroughly understand their existing policies, discharge their fiduciary duty and evaluate any and all of their options.
Why You Need an Annual Review
Market Changes: Life insurance is a financial product subject to fluctuating market conditions. Changes in economic factors, such as interest rates or stock market performance, impact life insurance carriers' product design and pricing.
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Actuarial Table Adjustments: Adjustments in actuarial tables for such things as increases in life expectancies directly impact the cost of insurance.
Carrier Competition: Life insurance carriers are under constant competitive pressure to create new products to attract consumers and increase sales.
Life Changing Events: Over time, personal situations change. Your current insurance portfolio may no longer address the circumstances for which it was originally designed.
Schechter Wealth Strategies' Comprehensive Portfolio Review
1. Detailed Portfolio Snapshot: A complete picture of the existing policies is created based upon the following factors:
a. The current status of the policy;
b. The projected performance of the policy under various possible funding scenarios;
c. The sensitivity of the policy to changes to the carrier's policy credit rates;
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d. The basis of the policy for federal tax purposes;
e. The underlying cost structure of the policy;
f. The ownership of the policy; and
g. The historical funding of the policy and the use of lifetime and annual gifting exclusions.
2. Policy Benchmarking: The existing policies are benchmarked versus current market. They are evaluated based on their rate of return on cash values and death benefit.
3. Policy Market Value: Where appropriate, the potential value of policies in the after-market for life insurance products is evaluated.
4. Preliminary Report: A preliminary report is prepared for you and your advisors detailing the existing policies and identifying potential alternatives where appropriate.
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5. Client/Advisor Meeting: A meeting is scheduled with you and your professional advisors to discuss the policies and potential options.
6. Final Report: Based on the meeting, a final report is prepared for you and any action steps are commenced.
Through our broad based review process, Schechter Wealth Strategies has identified opportunities to help our clients to leverage their insurance dollars in accordance with their current needs.
Disclosure: There are considerable issues that need to be considered before replacing life insurance such as, but not limited to, commissions, fees, expenses, surrender charges, premiums and the new contestability period. There may also be unfavorable tax consequences caused by surrendering an existing policy such as potential tax on outstanding policy loans. Please discuss your situation with your tax and financial advisors.
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