The Policy Management Company

Enhancing your Insurance Experience by Bridging Expectations with Results

Through our relationship with the ValMark Companies, we have access to The Policy Management Company which provides policy monitoring and management services for our clients’ in-force life insurance policies.

This is accomplished through an effective combination of technology, a dedicated team of policy management experts, and a professional process developed from ValMark’s 50+ years of experience with sophisticated life insurance policies.

Together, they form a durable bridge connecting your expectations of promised policy benefits with actual results. Our goal is to give you the assurance of ongoing policy performance while creating what we believe is a superior insurance experience. Potential advantages to both policy holders and trustees include:

  • Assurance of ongoing policy performance
  • Access to all policy information in one centralized location
  • Assurance that your insurance needs are always covered
  • Automated trust administration and documented policy performance
  • Assurance of ongoing service by a trusted third party

Case Studies

Guaranteed products need to be continually monitored and managed. The slightest deviation from the policy plan can cause a guarantee to go off track.

SITUATION: A 50-year-old entrepreneur purchased a $2 million Guaranteed Universal Life policy with an annual premium of $50,000 and a lifetime guarantee.

CHALLENGE: In Year 2, the premium was two weeks overdue and the entrepreneur received a termination notice from the carrier giving him the option to pay $50,000 and receive a one-year guarantee or pay $145,000 for a lifetime guarantee.

Upon investigation, the advisor learned that the late payment had automatically caused a rate change that would have cost the entrepreneur $95,000 to reinstate the lifetime guarantee

RESOLUTION: The Policy Management Company was called in and was able to leverage its relationship with the carrier to reinstate the lifetime guarantee without additional premium. Of note, had the policy been originally supervised by The Policy Management Company, this situation could have been avoided due to proactive services such as premium alerts and advance

Guaranteed products need to be continually monitored and managed. The slightest deviation from the policy plan can cause a guarantee to go off track.

SITUATION: A recently-retired, 65-year-old corporate executive purchased a $3 million Universal Life policy for a single premium payment of $850,000. The original policy was projected to sustain the death benefit to age 100 based on the current interest

The client, who is now 85 years old, was notified that his policy is projected to lapse at age 89 due to the sustained low interest rate

CHALLENGE: The carrier gave the client the choice of paying an annual premium of $129,079 to extend coverage to age 95, or $173,338 per year to extend coverage to age 100.

TAKE AWAY: This particular product design has the greatest risk of lapsing early due to the current low interest rate environment. If the policy would have been monitored more closely over the years, early intervention could have significantly reduced the amount of premium required to maintain coverage until age 100.

*These are hypothetical examples for illustrative purposes only. The experiences of these clients may not be representative of the experience of all clients and is not indicative of future results.

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