Avoid the Life Insurance Crisis

“I use my experience, independence, and relationships to enhance a person’s life insurance portfolio with their best interest in mind.” – Henry Montag CFP

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Life Insurance can be a great tool in your overall financial or estate plan. However, many individuals (and even financial professionals like CPAs, advisors, and estate planners) are unaware of a looming life crisis resting in individually owned or trust owned life insurance portfolios.

While financial instruments such as stocks, bonds, investments, etc. are subject to active management, life insurance is overlooked and treated as a ‘Buy and Hold’ asset rather than a ‘Buy and Manage’ asset.

This can be damaging for a number of reasons:

  • Policies may be underperforming as 45% are Non -Guaranteed
  • As many as 23% of those policies are lapsing prematurely.
  • A consumer’s Life Ins portfolio may make up a large portion of assets.
  • Life Ins assets allocated to the next generation will not materialize.

Your clients did not INTEND to have their life insurance portfolio disappear.

Consider that:

  • Originally illustrated policy premiums were based on higher interest rates that have not been achieved. 15% to a current 3%
  •  Life Insurance Settlement Association, states “Insureds lose $112 Billion annually in life insurance death benefits due to surrenders.
  • 90% of life Insurance policies are managed by the Insured or Grantors’ eldest sibling acting as an ‘amateur trustee’ with no experience nor training

Fill out the form to learn how I can act as your life insurance resource. Complimentary first analysis.

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The prevalence of so many contracts among badly informed consumers is “the insurance industry’s dirty, not-so-little secret,”

-Wall Street Journal, August 2015

Henry Montag is an Independent Certified Financial Planner in practice since 1976 with offices in Long Island and New York. He is a principle of The TOLI Center East, which provides independent fee-based performance evaluation for private trustees, family offices, their advisers and institutional trustees. The intent being to analyze the performance of a client’s existing privately owned and or trust-owned life Insurance portfolio, and provide guidance to the trustee so as to maximize current benefits and maintain assets earmarked for the next generation.

He is the co-author of The Life Insurance Policy Crisis: 

The Advisors and Trustees Guide to Managing Risks and Avoiding a Client Crisis, a regular speaker and presenter, as well as the author of numerous articles covering taxes, life insurance, and other financial concerns.