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Protecting your Future … Estate | Retirement | Business
Why do you need to review your insurance needs?

Life evolves and insurance has to keep up.
Life Insurance has Dramatically Changed: Over the past several years significant changes
have been made in the insurance industry and clients with older policies should have a review
to ensure they are getting the most value for their policies. Older policies may not be utilizing
the latest cost of insurance factors, medical advances and technical enhancements now
available.

Many Policies may not have Lifetime Guarantees: Their viability may be based not only on
outdated costs, but also on outdated crediting rates. Products today can guarantee the death
benefit, assuming that premium payments have been made on schedule. The guarantee is
independent of an interest rate assumption on market performance.

Changes in Life Circumstances, Ownership and Beneficiary: Designations should regularly be
reviewed as having the wrong ownership and/or beneficiary arrangements may cost clients
more than half of their existing insurance benefits. Also health circumstances may have
changed, including more favorably for the client (i.e., moving from smoker to non-smoker).
New advances in healthcare have made it easier for people to qualify for a better risk class
today.

Trustees: Have an obligation to review the policies they hold in trust, especially since the
Prudent Investor Rule replaced the Prudent Person Rule. Many feel that they do not have
the expertise to review life insurance policies. Trustees are required to have guidelines and
procedures in place to handle Trust Owned Life Insurance; however, recent surveys indicate
that upwards of 90 percent are not yet using them.



                       What is in a policy review?

	 •	A	policy	summary.
	 •	A	review	of	the	structure,	ownership,	 beneficiaries 	and	payment	methods.
	 •	An	assessment	of	the	underwriting	class.
	 •	An	assessment	of	the	contract’s	current	performance	including	future	projections.
	 •	An	evaluation	of	the	financial	stability	of	the	insurance	company.
	 •	Any	possible	alternatives	to	the	existing	policy.
The case for urgency
          Jeff, a New York producer, conducted policy analysis for David, a friend and client who was a
          very successful cardiac surgeon in Manhattan.

          David, 34, earned more than $500,000 a year, had a wife and two children, and carried
          significant debt, primarily from student and business loans. Jeff weighed all of these factors
          and determined his friend needed $6 million in coverage. He wrote up a 20-year term life
          insurance contract with a premium of $7,600 a year.

          Two years later, David was struck by a car and killed while crossing the street. Soon after his
          funeral,	the	producer	delivered	a	check	for	$6	million	to	David’s	family.	All	of	David’s	debts	
          were	paid	off,	and	his	family’s	needs	were	met	for	the	foreseeable	future	-	all	because	he	
          had	an	agent	and	friend	looking	out	for	him.	But	it	shouldn’t	take	a	family	friend	to	ensure	
          clients are covered with adequate life insurance. Your trusted financial professional can
          ensure that your family is adequately covered.



                                                                                                    SAMPLE      YOUR INFO
 Monthly Income Needed                                                                            $10,000.00
 Enter the estimated amount your family would require every month to maintain
 their current standard of living if you were to die unexpectedly
 Combined Federal and State Tax Rate                                                                     0.40
 Enter your combined Federal and State Tax rate expressed as a decimal (e.g.,
 40% = .40)
 Monthly capital needed [monthly income / (1 - tax rate)]                                         $16,666.67
 Annual capital needed (monthly capital needed x 12)                                             $200,000.00
 Rate of Investment Return                                                                              0.08
 Enter estimated rate return when invested expressed as a decimal
 (e.g., 8% = 0.08)
 Capital needed to provide annual income (capital needed annually / rate of                     $2,500,000.00
 investment return)
 Other Expenses                                                                                   $50,000.00
 Enter combined total of all your other debts and future expenses (e.g., car loan,
 student	loan,	credit	cards,	child’s	college	tuition	or	wedding)
 Capital needed to provide annual income + other expenses                                       $2,550,000.00
 How much capital do you have?                                                                   $500,000.00
 Life Insurance Coverage Estimate                                                               $2,050,000.00
* The results generated by this formula are hypothetical and will vary, due to user input
and various assumptions. AimcoR Group and its members do not guarantee the accuracy
of the calculations, results, or explanation, nor their applicability to specific situations.
This is a guide only.
Life Review Fact Finder

                                                                     NAME __________________________________________
When	life	changes,	it’s	important	to	review	
your life insurance needs. Please provide the                        AGE _________ MARITAL STATUS __________________
information on this fact finder form to help your
financial professional ensure that your policies are                 NUMBER OF CHILDREN (IF ANY) __________________
up to date with your current goals. If you prefer,
your financial professional can help you gather
policy information directly from your insurance
                                                                     LIFE INSURANCE POLICY INFORMATION
carriers.
                                                                     Do you currently own any life insurance policies? ____________

RECENT LIFESTYLE AND FAMILY CHANGES                                  If yes, when were they purchased? ________________________
                                                                     Have your policies been reviewed in the past 2 years? ________
Are you recently married, divorced or widowed? ________________
                                                                     Why was this coverage purchased? ________________________
Any changes in income including salary or inheritance? __________
                                                                     Has your health changed since the purchase? _______________
Do you need to fund retirement or college education? ___________
                                                                     Were you a smoker? ____________________________________
Did you purchase or sell a home?_____________________________
                                                                     If yes, have you recently stopped? _________________________
Did you start or sell a business? ______________________________
                                                                     What other advisors (i.e., attorneys, CPAs, etc.) do you work
Have any children been added or left from the household? _______
                                                                     with? (Name/phone?)
Are you caring for a special needs child? _______________________
                                                                     _____________________________________________________
Are you the caretaker of a parent or relative? ___________________
                                                                     _____________________________________________________

                                                                     LIFE INSURANCE POLICY INFORMATION
Although individuals may regularly review financial
                                                                     Family Protection: Provides the most guaranteed death benefit
goals and investments, they often neglect to                         with the least total premiums ____________________________
update their life insurance coverage to meet                         Details _______________________________________________
changing goals or life situations. To determine if                   _____________________________________________________
your current life insurance coverage meets both                      Business Insurance: Fund buy-sell agreements, key man
your present and long term planning needs in                         insurance and deferred compensation _____________________
the most cost efficient manner, it is first helpful to               Details _______________________________________________
identify your priorities and purpose of current                      _____________________________________________________
in-force coverage.                                                   Retirement Planning / Supplemental Income: Provides
                                                                     additional income at some point in the future _______________
Conducting a policy review is a great way to
                                                                     Details _______________________________________________
determine if current coverage is adequate,                           _____________________________________________________
performing up to expectations, and remain in line
                                                                     Estate Planning: Provides estate tax liquidity and helps preserve
with your overall financial plan. Please check the
                                                                     wealth for future generations ____________________________
appropriate boxes that reflect the purpose and                       Details _______________________________________________
goal of current in-force life insurance coverage.                    _____________________________________________________

                                                                     Other: Needs that do not fit any other category _____________
                                                                     Details ______________________________________________
Does your life insurance coverage meet your goals?

POLICY 1                                                Purpose of insurance __________________________
Insurance company _____________________                 Date of policy issue ___________________________
Policy face amount _____________________                Policy cash value ______________________________
Policy type:
    10-year term     15-year term      20-year term
    30-year term     Whole Life        Universal Life
    Variable UL      Other: _____________________
Annual premium amount _________________________         Interest rate __________________________________
Policy owner ___________________________________        Surrender penalty period _______________________
Insured name ___________________________________        Relationship to you     Self       Spouse          Other
Beneficiary name ________________________________       Relationship to you     Self       Spouse          Other


POLICY 2                                                Purpose of insurance __________________________
Insurance company _____________________                 Date of policy issue ___________________________
Policy face amount _____________________                Policy cash value ______________________________
Policy type:
    10-year term     15-year term      20-year term
    30-year term     Whole Life        Universal Life
    Variable UL      Other: _____________________
Annual premium amount _________________________         Interest rate __________________________________
Policy owner ___________________________________        Surrender penalty period _______________________
Insured name ___________________________________        Relationship to you    Self        Spouse          Other
Beneficiary name ________________________________       Relationship to you    Self        Spouse          Other


POLICY 3                                                Purpose of insurance __________________________
Insurance company _____________________                 Date of policy issue ___________________________
Policy face amount _____________________                Policy cash value ______________________________
Policy type:
    10-year term     15-year term      20-year term
    30-year term     Whole Life        Universal Life
    Variable UL      Other: _____________________
Annual premium amount _________________________         Interest rate __________________________________
Policy owner ___________________________________        Surrender penalty period _______________________
Insured name ___________________________________        Relationship to you    Self         Spouse         Other
Beneficiary name ________________________________       Relationship to you    Self         Spouse         Other
IN-FORCE AUTHORIZATION
Carrier’s Name & Address:____________________________________________________
For Insured (Print Name): ____________________________________________________

Policy Number 1: ________________________ Product: ___________________________
Policy Number 2: ________________________ Product: ___________________________
Policy Number 3: ________________________ Product: ___________________________

To whom it may concern:
I hereby authorize you to release any information on the above captioned policy with your company to
______________________________. This includes, but is not exclusive to, any cash value information as well as
in-force ledgers. A photocopy of this authorization shall be as valid as the original.

Thank you for your attention to this request.

Sincerely,
Owner’s Signature: ______________________________                                 Today’s Date: __________________
Owner’s Name (Print): ___________________________                                 Owner’s SS#: __________________
(Include capacity i.e., Trustee, Corporate Office, Power of Attorney.)


Agent’s Name: _______________________________

TYPE OF INFORCE ILLUSTRATION(S) REQUESTED
       Full Pay - pay premium all years
       Limited Pay - scheduled premium payments stop when valued adequate to endow policy
       Solve for level premium to endow policy
       Solve for level premium to guarantee policy for life
       Additional Scenario ________________________________________________________
                             ________________________________________________________

     Please be sure to note the product type of each policy that is to be reviewed or provide a copy of the last annual
                                     statement along with the signed authorization.

                                         FAX ALL INFORMATION TO (210)497-0174



                                                             19141 Stone Oak Parkway, Suite 104-316
                                                             San Antonio, TX 78258
                                                             (210) 827-8787 Phone
                                                             (210) 497-0174 Fax
                                                             www.shellyalvarez.comWeb
                                                             shelly@shellyalvarez.comE-mail

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Shelly Alvarez Insurance E- Policy Review

  • 1. Protecting your Future … Estate | Retirement | Business
  • 2. Why do you need to review your insurance needs? Life evolves and insurance has to keep up. Life Insurance has Dramatically Changed: Over the past several years significant changes have been made in the insurance industry and clients with older policies should have a review to ensure they are getting the most value for their policies. Older policies may not be utilizing the latest cost of insurance factors, medical advances and technical enhancements now available. Many Policies may not have Lifetime Guarantees: Their viability may be based not only on outdated costs, but also on outdated crediting rates. Products today can guarantee the death benefit, assuming that premium payments have been made on schedule. The guarantee is independent of an interest rate assumption on market performance. Changes in Life Circumstances, Ownership and Beneficiary: Designations should regularly be reviewed as having the wrong ownership and/or beneficiary arrangements may cost clients more than half of their existing insurance benefits. Also health circumstances may have changed, including more favorably for the client (i.e., moving from smoker to non-smoker). New advances in healthcare have made it easier for people to qualify for a better risk class today. Trustees: Have an obligation to review the policies they hold in trust, especially since the Prudent Investor Rule replaced the Prudent Person Rule. Many feel that they do not have the expertise to review life insurance policies. Trustees are required to have guidelines and procedures in place to handle Trust Owned Life Insurance; however, recent surveys indicate that upwards of 90 percent are not yet using them. What is in a policy review? • A policy summary. • A review of the structure, ownership, beneficiaries and payment methods. • An assessment of the underwriting class. • An assessment of the contract’s current performance including future projections. • An evaluation of the financial stability of the insurance company. • Any possible alternatives to the existing policy.
  • 3. The case for urgency Jeff, a New York producer, conducted policy analysis for David, a friend and client who was a very successful cardiac surgeon in Manhattan. David, 34, earned more than $500,000 a year, had a wife and two children, and carried significant debt, primarily from student and business loans. Jeff weighed all of these factors and determined his friend needed $6 million in coverage. He wrote up a 20-year term life insurance contract with a premium of $7,600 a year. Two years later, David was struck by a car and killed while crossing the street. Soon after his funeral, the producer delivered a check for $6 million to David’s family. All of David’s debts were paid off, and his family’s needs were met for the foreseeable future - all because he had an agent and friend looking out for him. But it shouldn’t take a family friend to ensure clients are covered with adequate life insurance. Your trusted financial professional can ensure that your family is adequately covered. SAMPLE YOUR INFO Monthly Income Needed $10,000.00 Enter the estimated amount your family would require every month to maintain their current standard of living if you were to die unexpectedly Combined Federal and State Tax Rate 0.40 Enter your combined Federal and State Tax rate expressed as a decimal (e.g., 40% = .40) Monthly capital needed [monthly income / (1 - tax rate)] $16,666.67 Annual capital needed (monthly capital needed x 12) $200,000.00 Rate of Investment Return 0.08 Enter estimated rate return when invested expressed as a decimal (e.g., 8% = 0.08) Capital needed to provide annual income (capital needed annually / rate of $2,500,000.00 investment return) Other Expenses $50,000.00 Enter combined total of all your other debts and future expenses (e.g., car loan, student loan, credit cards, child’s college tuition or wedding) Capital needed to provide annual income + other expenses $2,550,000.00 How much capital do you have? $500,000.00 Life Insurance Coverage Estimate $2,050,000.00 * The results generated by this formula are hypothetical and will vary, due to user input and various assumptions. AimcoR Group and its members do not guarantee the accuracy of the calculations, results, or explanation, nor their applicability to specific situations. This is a guide only.
  • 4. Life Review Fact Finder NAME __________________________________________ When life changes, it’s important to review your life insurance needs. Please provide the AGE _________ MARITAL STATUS __________________ information on this fact finder form to help your financial professional ensure that your policies are NUMBER OF CHILDREN (IF ANY) __________________ up to date with your current goals. If you prefer, your financial professional can help you gather policy information directly from your insurance LIFE INSURANCE POLICY INFORMATION carriers. Do you currently own any life insurance policies? ____________ RECENT LIFESTYLE AND FAMILY CHANGES If yes, when were they purchased? ________________________ Have your policies been reviewed in the past 2 years? ________ Are you recently married, divorced or widowed? ________________ Why was this coverage purchased? ________________________ Any changes in income including salary or inheritance? __________ Has your health changed since the purchase? _______________ Do you need to fund retirement or college education? ___________ Were you a smoker? ____________________________________ Did you purchase or sell a home?_____________________________ If yes, have you recently stopped? _________________________ Did you start or sell a business? ______________________________ What other advisors (i.e., attorneys, CPAs, etc.) do you work Have any children been added or left from the household? _______ with? (Name/phone?) Are you caring for a special needs child? _______________________ _____________________________________________________ Are you the caretaker of a parent or relative? ___________________ _____________________________________________________ LIFE INSURANCE POLICY INFORMATION Although individuals may regularly review financial Family Protection: Provides the most guaranteed death benefit goals and investments, they often neglect to with the least total premiums ____________________________ update their life insurance coverage to meet Details _______________________________________________ changing goals or life situations. To determine if _____________________________________________________ your current life insurance coverage meets both Business Insurance: Fund buy-sell agreements, key man your present and long term planning needs in insurance and deferred compensation _____________________ the most cost efficient manner, it is first helpful to Details _______________________________________________ identify your priorities and purpose of current _____________________________________________________ in-force coverage. Retirement Planning / Supplemental Income: Provides additional income at some point in the future _______________ Conducting a policy review is a great way to Details _______________________________________________ determine if current coverage is adequate, _____________________________________________________ performing up to expectations, and remain in line Estate Planning: Provides estate tax liquidity and helps preserve with your overall financial plan. Please check the wealth for future generations ____________________________ appropriate boxes that reflect the purpose and Details _______________________________________________ goal of current in-force life insurance coverage. _____________________________________________________ Other: Needs that do not fit any other category _____________ Details ______________________________________________
  • 5. Does your life insurance coverage meet your goals? POLICY 1 Purpose of insurance __________________________ Insurance company _____________________ Date of policy issue ___________________________ Policy face amount _____________________ Policy cash value ______________________________ Policy type: 10-year term 15-year term 20-year term 30-year term Whole Life Universal Life Variable UL Other: _____________________ Annual premium amount _________________________ Interest rate __________________________________ Policy owner ___________________________________ Surrender penalty period _______________________ Insured name ___________________________________ Relationship to you Self Spouse Other Beneficiary name ________________________________ Relationship to you Self Spouse Other POLICY 2 Purpose of insurance __________________________ Insurance company _____________________ Date of policy issue ___________________________ Policy face amount _____________________ Policy cash value ______________________________ Policy type: 10-year term 15-year term 20-year term 30-year term Whole Life Universal Life Variable UL Other: _____________________ Annual premium amount _________________________ Interest rate __________________________________ Policy owner ___________________________________ Surrender penalty period _______________________ Insured name ___________________________________ Relationship to you Self Spouse Other Beneficiary name ________________________________ Relationship to you Self Spouse Other POLICY 3 Purpose of insurance __________________________ Insurance company _____________________ Date of policy issue ___________________________ Policy face amount _____________________ Policy cash value ______________________________ Policy type: 10-year term 15-year term 20-year term 30-year term Whole Life Universal Life Variable UL Other: _____________________ Annual premium amount _________________________ Interest rate __________________________________ Policy owner ___________________________________ Surrender penalty period _______________________ Insured name ___________________________________ Relationship to you Self Spouse Other Beneficiary name ________________________________ Relationship to you Self Spouse Other
  • 6. IN-FORCE AUTHORIZATION Carrier’s Name & Address:____________________________________________________ For Insured (Print Name): ____________________________________________________ Policy Number 1: ________________________ Product: ___________________________ Policy Number 2: ________________________ Product: ___________________________ Policy Number 3: ________________________ Product: ___________________________ To whom it may concern: I hereby authorize you to release any information on the above captioned policy with your company to ______________________________. This includes, but is not exclusive to, any cash value information as well as in-force ledgers. A photocopy of this authorization shall be as valid as the original. Thank you for your attention to this request. Sincerely, Owner’s Signature: ______________________________ Today’s Date: __________________ Owner’s Name (Print): ___________________________ Owner’s SS#: __________________ (Include capacity i.e., Trustee, Corporate Office, Power of Attorney.) Agent’s Name: _______________________________ TYPE OF INFORCE ILLUSTRATION(S) REQUESTED Full Pay - pay premium all years Limited Pay - scheduled premium payments stop when valued adequate to endow policy Solve for level premium to endow policy Solve for level premium to guarantee policy for life Additional Scenario ________________________________________________________ ________________________________________________________ Please be sure to note the product type of each policy that is to be reviewed or provide a copy of the last annual statement along with the signed authorization. FAX ALL INFORMATION TO (210)497-0174 19141 Stone Oak Parkway, Suite 104-316 San Antonio, TX 78258 (210) 827-8787 Phone (210) 497-0174 Fax www.shellyalvarez.comWeb shelly@shellyalvarez.comE-mail