The document discusses performing a life insurance audit for clients. It notes that a client's life insurance needs may change over time due to various life events and circumstances. An audit allows an advisor to review a client's current policies and coverage to ensure it still meets their needs, and identify any opportunities to improve the policy or consider alternatives. The audit demonstrates the advisor's commitment to clients and can help strengthen the client relationship and potentially lead to referrals. It discusses common triggers for a policy review and how audits have benefited clients in various case studies by eliminating premiums, guaranteeing coverage, and improving health ratings.

1. Advisor Guide to the
Life Insurance Audit
SM

2. Why perform a Life Insurance Audit for your clients?
Ensuring your client’s life insurance policies are still answering their
changing needs and concerns is important. This is why it is necessary
to hold periodic reviews with your clients – to look out for them and
their interests. The Ash Brokerage Life Insurance Audit helps you
illustrate the value of periodic life insurance reviews to your clients.
Many clients may not realize their life insurance needs may have
changed since they first purchased this important benefit. As a part
of financial goal setting, it is critical to ensure your client’s life
insurance coverage and policy provisions keep pace with their
changing lives. Do the life insurance choices your clients made
before still make sense? Common triggers include:
n The need for life insurance may increase or decrease.
n Family or business situations may change.
n Interest (UL), dividends (permanent whole life), or investment
returns (VUL) may have declined.
n The insured’s health may improve, offering opportunities for
improved underwriting.
n The insured’s health may deteriorate, making it important that
the existing policy remain in-force.
n Loans, withdrawals, or other policy changes may affect policy
performance.
n Premiums on term insurance increase with age, making
conversion to or purchase of a permanent policy more
expensive if the insurance needs continue.
n Premiums may not have been paid as planned.
n Other issues that might warrant a review.

3. It’s good for your client and good for you
When you perform a Life Insurance Audit, you provide a service that
demonstrates a commitment to your client’s interests. An objective,
consultative analysis brings clarity and gives your client’s opportunities to:
n Review their current situation and gain a deeper understanding
of their life insurance needs.
n Determine if their existing policies still meet their needs, and
where applicable, make funding adjustments appropriate for
their current situation.
n Consider any possible improvements in their underwriting class.
n Review any new riders that might be available.
n Understand the provisions and benefits within the existing policy.
n Consider alternatives that might better meet their needs such as:
– policies with secondary guarantees
– extended maturity options
– better loan provisions
– lower policy charges
– less expensive underwriting classes.
n Build a stronger relationship with you.
Your clients aren’t the only ones who benefit. A Life Insurance Audit
not only helps clients modify, adjust, or reaffirm their life insurance
programs – it reinforces their confidence in you and strengthens your
relationships with trustees and other professionals. It may also help
you gain referrals.

4. Life Insurance in 1990
Standard preferred Standard
non-Smoker Smoker
Key Areas of comparison
1990 Today
MortALIty tAbLe 1958 or 1980 2001
Interest rAtes
CURREnT 6-10% 3-6%
GUARAnTEED 4% 3%
types of products
AvAILAbLe Term All products of 1990
Whole Life Equity Indexed UL
Current Universal Life With and Without Guarantee
Guaranteed UL
Variable UL
With and Without Guarantee
underWrItIng
REqUIREMEnTS Finger Stick Full Fluids
InFORMATIOn/TEChnOLOGY Limited, slow to become Better understanding,
available internet availability with
high degree of free flowing
collaboration and innovation

5. Life Insurance today
standard
standard plus
preferred
preferred
plus
example #1 example #2
57 year old Female 72 year old Male
$1 mm Whole Life with term blend Universal Life assumed
not guaranteed 9% credit rate
Originally $20,000 Projected Premium $35,000 Projected Premium
payable for 10 years payable for 8 years
Policy still requires two more Policy projected to lapse in 15 years
additional payments
Results Results
1990 – highly Rated 1990 – Standard
history of Cancer Due to blindness
Today – Standard Today – Preferred nS
new Guaranteed policy requires no more new policy guarantees coverage
premiums. for 20 years.

6. case studies
case studies
eliminate premiums and guarantee coverage
Insured: Male, 81 and Female, 80
underwriting factors:
Male Issued Table C
Female Issued Table A
11 Year Old Whole Life Policy
current policy facts:
Policy Premium of $65,000
Premium required for 13 more years
Audit resulted in several options:
Able to provide Uninsurable on the Male and Standard
non-Smoker for the Female.
Option 1: Maintain current $65,000 of premium for 13 years.
In year 14 use paid up additions to pay for the premiums.
Option 2: Move existing coverage, maintain the same benefit
with no future premiums and guArAntee coverage to
age 120.
product Improvement
Insured: Male, 75
underwriting factors:
history of hypertension and CAD
current policy facts:
Policy Face amount $4,250,000
Policy relies heavily on invested portfolio
Audit resulted in several options:
Able to provide Standard non-Smoker Table 8.
Option 1: Rely on the policy value to carry the coverage
to age 100.
Option 2: obtain a $5,900,000 policy with no future premiums
and guArAntee coverage for life.

7. Who you should talk to
YOur ClienTs: The first and most logical place to start is your present
block of business. This is the business you are responsible for and
the business most important for you to review.
QuesTiOns TO ask YOurself:
1. Do I have clients whose financial, business or personal
situation has changed? A major part of the audit is servicing your
client’s changing situations.
2. What were the biggest cases I placed?
3. have I placed any rated cases? Many ailments and illnesses
are underwritten differently now than they were just a few
years ago. Your client may now be eligible for a Table Shave
Program. Changes in Table Shave Programs over the last few
years have created opportunities to improve your client’s situations.
4. have I written any Whole Life (WL) cases? new generation
Guaranteed UL policies might be more competitive than WL in
providing a guaranteed death benefit.
5. have I received any in-force policy requests from my clients?
new ClienTs: Anyone with a current permanent life insurance policy
is a prospect for this service.
CenTers Of influenCe: A CPA, Attorney or Trust Officer who has
advised a client on the purchase of life insurance, or is responsible
for the maintenance of life insurance, is a prospect for the service.

8. the Ash Advantage
Ash Brokerage was founded in 1971 with a vision of being the premier
outsourcing partner to insurance agents, financial advisors, registered
representatives and career agents. Operating under two simple yet effective
principles, service and relationships; Ash has grown to become one of
the largest independently owned brokerage agencies. Ash services customers
with over 300 professional staff members in multiple offices throughout the
United States.
Ash Brokerage has big company leverage with small company accessibility.
Through influential relationships with more than 80 insurance companies,
Ash offers its customers unparalleled access to the most dynamic portfolio
of product resources in the industry. Additionally, Ash has 16 professional
Underwriters on staff offering one-on-one consultation for solutions to
financial and health underwriting challenges. With one phone call, advisors
have access to experts in Life Insurance, Annuities, Long Term Care, Disability
Income, Advanced Markets and Underwriting.
Ash Brokerage is not just a source for products but a resource for solutions.
The staff is committed to investigating, analyzing and comparing products and
sales concepts across the industry to ensure the advisor has the right solution
for their customer.
Ash Brokerage is…The Practice enhancement Company. This guiding
principle drives the behavior of all staff members in every office. Ash’s
existence is dependent on enhancing the advisor’s practice through consultative
approaches to product solutions, concept evaluation, underwriting negotiation
and business development.
For Producer Use Only. not intended for use in solicitation of sales to the public. The Life Insurance Audit is a complimen-
tary service offered by Ash Brokerage, Inc. (“Ash”) through some of the top financial service professionals in the country
to assist consumers in analyzing their existing insurance policies. For use with non-registered products only. It is not a
program designed to encourage consumers to replace existing policies. Products and programs offered through Ash are
not approved for use in all states.
LI-4004 Rev. 06/08