How do our services help you determine if a Life Insurance 1035 Exchange is right for you?

 

1035 Exchange Advisors assists high net worth families and businesses analyze the impact of a 1035 exchange on their life insurance portfolio. We do not promote or advocate 1035 exchanges in all situations. We want our clients to look at both the advantages, and more important, the disadvantages of doing the exchange. Our senior principal has over 30 years of experience dealing directly with 1035 exchange life insurance transactions.

Our Process

As life insurance experts, we will analyze your existing policies, ask you a lot of questions and help you determine if a 1035 exchange makes sense. If it does not, we will advise you to maintain your existing policies. We may ask that your tax and or legal advisors be included in the discussion and analysis. Typically, the entire process takes several weeks.

What is the cost to you for our services? Nothing. We do not get paid unless you see results. You will not be charged a fee by us. We receive compensation in the form of a commission paid by the insurance company issuing the new policy. That new policy will only be issued if your goals are met. If we are unable to show you results, a lower premium as an example, then we do not get compensated.

Here is a step by step example of the services we may provide:

Based on our discussions, our firm will provide the following services:

• Review prior 1035 exchange life insurance proposal(s) you received, if any, from other insurance brokers. Two policies are owned by your Chicago, Il life insurance trust, while one is owned by your personally. We want to be fair and understand how prior broker relationships may be of value to you and your family. You expressed a desire to have the other broker participate in a portion of the commissions pertaining to the 1035 exchange of the trust owned policies.

• Review your current life insurance policy(ies). Types of policies we analyze include, but are not limited to:
  •Cash value products such as Universal, Variable, Guaranteed Universal, Whole or Indexed Universal Life.
  •Term.
  •Association.
  •Employer Provided.

• Data needed from the above policies include:
  •A copy of the most current statements and actual policies, if you have them.
  •Illustrations generated by corresponding insurance carrier:
  ⋅At the time the policies were purchased, if you still have them.
  ⋅New Illustrations based on current assumptions:
  ♦ Current premium is paid at current assumptions.
  ♦ If current premiums are insufficient, the premium needed to maintain the policy at current assumptions.

• New Products (life insurance 1035 exchange): We will compare the above illustrations to new life insurance 1035 exchange products available on the market, based on your financial needs and family situation. Your financial needs and family situation have probably changed since you first bought those policies, so the products we recommend will be better suited to your changing needs. As an example, you may have purchased the policies when your two children were young as a source of income replacement. However, now that the kids are adults and no longer financially dependent on you and your spouse, the purpose for the insurance may be needed for estate tax coverage, or some other need.

• We will review current ownership and beneficiary designations of existing policies and discuss with you and your legal advisors.

• How to Qualify: Assuming new insurance is requested by you, an application or informal application will be submitted to one or more insurance carriers. An exam will need to be completed by you (and your spouse) at your home or office. This exam will be provided at no cost to you. The exam results can be provided to you or your physician at no cost to you. This qualification period can take six to eight weeks or longer.

• Annual Reviews: Our services do not stop after implementation of your policy(ies). Rather, they have just begun. We will periodically review the policies with the two of  you to confirm that they are performing as projected and continue to meet your needs. Some policies require more monitoring than others, but we make an effort to stay in touch with you either way. We hope to become one of your key and trusted advisors.

•  We do not provide legal or accounting advice. See disclaimer below.