The Basics of Premium Management. Most owners of life insurance policies simply pay the amount of premiums periodically invoiced by the insurance company without evaluating whether that amount is the most advantageous to them. In contrast, Living Wealth Advisors reviews and analyzes all information regarding our clients’ life insurance policies to calculate the premium payments for each policy that will result in the best financial return to our clients. Living Wealth Advisors can annually update these premium payment estimates based upon the most recent policy information available to ensure a policy is maintained as efficiently as possible. By utilizing the information we provide, our clients can realize long-term financial benefits of up to 30% of the face amount of the life insurance policies held for their benefit.

The Goals and Benefits of Premium Management. The goal of premium management is to allow our clients to minimize the cash invested in each of their life insurance policies while maintaining the full death benefit in order to maximize their return on the cash savings. There are many benefits from properly managing the cash used to pay premiums for life insurance policies:

• Our clients can reduce the total payments made to keep a life insurance policy in force while maintaining the same death benefits payable upon the death of the insured.
• Our clients can avoid making payments to the life insurance company that will not provide financial benefits to them upon the death of the insured individual.
• Our clients can maximize their overall financial returns over time from their life insurance policies and the funds used to maintain them.

Our clients can save cash by reducing premium payments and having those funds available to use either for ongoing investment purposes or immediate use by receiving the annual contributions from their donor and choosing the optimal amount to pay to the insurer each year in premiums.

Our Premium Management Process. Living Wealth Advisors reviews and analyzes all aspects of a life insurance policy in order to calculate the optimal amounts to be paid to the insurance company each year to maintain the full death benefit under the terms of the policy itself. For each life insurance policy, the primary materials we review and analyze include the following: (1) the terms and conditions of each life insurance policy in order to evaluate the internal policy costs, lapse triggers and any applicable riders; (2) a policy illustration that estimates future performance of the policy and the funds used to pay premiums with respect to the policy; and (3) a summary of the past performance of a life insurance policy.

What We Deliver. After conducting our review of a client’s life insurance policies, we deliver a detailed summary of our analysis for each individual policy, including (1) a comparison of the policy’s currently planned premiums and our calculation of the optimized premium payment stream necessary to maintain the current death benefit, (2) a schedule of the estimated financial returns from the policy based on the probability of the insured individual dying at any particular time, and (3) an estimate of the overall financial gain from implementing a premium management program with respect to such policy. We also provide a similar, aggregate analysis for the entire portfolio of life insurance policies that are held for their benefit.