To analyze whether to hold, replace or sell an insurance policy, see the simple steps below:

Step 1: Reevaluate the purpose for the life insurance policy to determine if that liquidity is still needed. Many individuals purchased life insurance policies several years ago to provide cash to their heirs to pay estate taxes; in certain cases, this reason is no longer needed. If the proceeds were designed to provide funds for a surviving spouse or for other purposes, reevaluate whether a life insurance policy is still the most appropriate vehicle to transfer assets to your heirs.

Step 2: Manage your life insurance policy like any other asset by analyzing the several risks inherent in any current policy. Are the scheduled premium payments sufficient to keep the policy in-force? Is the current policy uncompetitive in today’s market? Is the policy underperforming based on your past expectations and assumptions? Look into the cash surrender value vs. the secondary market value by getting a no-obligation present day evaluation from Blackhawk Wealth. Think about the present value of the future death benefit vs. the current cash that can be obtained. Can the same assets be redeployed to create a better return?

Step 3: Put in place an Annual Review Process to review this important asset, like you would any other asset. Look into the above issues now, and then decide whether to Hold, Replace or Sell outright … just like any other asset, and then review those decisions on an annual basis.

Contact Us
As a Premium Finance Specialist and Life Insurance Strategy Advisor, Blackhawk Wealth will create an efficient life insurance plan tailored to your individual needs with no cash investment involved. If you have an existing life insurance policy and would like to explore your options for this asset, please call Blackhawk Wealth at 858-764-4415 or email us at info@blackhawkwealth.com. We can also arrange premium financing for clients who wish to obtain a new life insurance policy with little or no-out- of-pocket expense, for their financial planning and Estate Planning needs.