Policy cost: We have identified X number of companies that might offer a meaningfully lower guaranteed premium cost than your current policy, possibly as much as $ annually for the duration of your current policy or beyond. Please note that this finding is based on the same or similar health classification as your current policy and assumes that your health, relative to your relative health has not markedly changed since your current policy was issued.

No-load quote(s): As a fee-only consulting service, we make a point of obtaining quotes not only from companies selling their policies through agents, but also from companies with “no-load” (i.e., no sales commission) policies that also have very high financial strength ratings. Among the companies with a lower premium quote for the remainder of the period covered by your current policy is no-load company Y, with a premium of $ .

Lowest quote(s) (but note it can be difficult to qualify for the lowest-cost term insurance): The lowest quote is $ ______ based on a super-preferred rating. You might qualify for this rating, but you should understand that companies offering the lowest-priced term insurance have strict underwriting requirements that make it difficult to qualify for the best health class and lowest premium. Reportedly, as few as 15 percent of applicants qualify for the most inexpensive premiums with some of these companies. So the low quotes can sometimes seem like a bait-and-switch when one does not qualify for the lowest premium and perhaps had little chance of doing so in the first place.

The objective, of course, is to find the lowest priced term insurance for which you can qualify, and there is good reason to believe, based on the limited health-related information you have provided, that you should be able to obtain lower-cost term insurance than the premium for your current policy for the remainder of its term.

Option of converting term insurance to permanent future in the future without an additional medical exam: While the policy you currently have allows you to convert all or any portion of the coverage for ___ years, we do not believe that this company would offer a very competitive form of permanent insurance. Companies with the lowest-priced term insurance do not generally offer the best values for permanent insurance. For any of the term coverage that you might think of converting to permanent insurance in the future, we would recommend term insurance with a company that has a track record of offering high-value permanent insurance even if the term insurance would cost a little more.

Duration of term insurance: You may wish to reconsider the period of time that you have term insurance. We note that your current policy is scheduled to last for another ___ years with its current guaranteed level premium. After the end of a guarantee period, the policy premium escalates dramatically and would be considered very expensive compared to alternatives for which you should qualify. If you think you might want term coverage for as long as your children may still be dependents, you may want to replace or modify your existing policy with insurance that will last somewhat longer.

Amount of insurance: Most suggested guidelines for amounts of life insurance in the financial press tend to understate the need. The recommendation is often just 5 to 7 times of income – without consideration or mention of whether most all of current income would be needed by survivors and for how long. We recommend an amount of insurance that would be sufficient, along with other investment assets, to generate the income (adjusted for inflation) that you would want to provide for surviving dependents. If that income needs to last for a long time, such as for the life of a surviving spouse, while increasing with inflation, a general financial planning rule is that no more than about 5% of capital should be consumed each year. Based on the limited information you provided in our questionnaire about your income and current investment assets, you may want to consider more coverage than your current policy provides. We can assist with a more detailed needs assessment if you are interested.

If you like, please call to discuss our findings and suggestions and the additional ways we can help you seek a lower cost and better value for your life insurance coverage.