You’ve done your due diligence. You’ve appropriately sized, signed, and sold your client the insurance they need. If your client is like most people, they now feel secure in the knowledge that they are insured, but what does that mean?
The Consumer-Reports company states that “At least $1 billion in benefits from misplaced or forgotten life-insurance policies are waiting to be claimed by their owners.” (https://www.consumerreports.org/cro/magazine/2013/02/how-to-find-lost-life-insurance-policies/index.htm) The insured in these cases paid years of premiums for nothing. Their beneficiaries received nothing and eventually the policy will be forfeited.
This isn’t a rare occurrence. As part of my standard discussion with consumers, I ask them if they are the beneficiary to any insurance policies. Many of them say “I don’t know.” If they do know that they are a beneficiary, I ask them what company the policy is with or if they could find out what company the policy is with. So far, no one has known who a policy was with and only ~30% said they were know where to find out if something happened to the insured.
What is needed is some sort of insurance delivery assurance, or… Insurance Insurance!
Just like we talk about “who is watching the watch dogs,” we should be asking “Who is insuring your insurance!” If we aren’t talking to our clients about this, then we are doing them a disservice.
Protecting the end game
There are many ways to ensure that a life insurance company is alerted after an insurable event takes place, but most of the methods are flawed in one way or another.
The simplest method is just to tell the beneficiary about the policy and perhaps even give them a copy for their safe keeping. However, because of the very nature of life insurance, the long period between the date that someone first initiates a policy and the date when an even takes place are frequently decades apart, and most people just don’t remember about the policy or where they put their copy.
People that are a little more proactive might put a copy of the policy in a safe deposit box, but the same original problem is still an issue: The beneficiaries may not know where the safe deposit box is and may not have access to it in a timely manner even if they did know where it was.
What clients need is a service that not only protects the information but ensures that it is delivered to the beneficiary after an event takes place – a company that insures the insurance – a company like LegacyArmour.
Doing it right
There are many companies today that claim to have some sort of “vault” in which their clients can store information, but every one of these companies has two flaws: The first flaw is that none of them have a programmatic triggering mechanism and delivery protocol. The problem that we are trying to solve is people not knowing or forgetting that a policy exists. Everyone of these companies (except LegacyArmour) requires that the subscriber enlist a number of trustees that will inform the company if anything happens to the subscriber. Wait a minute…they are fixing the fact that people can’t remember things long term by adding more people that have to remember something? That doesn’t make sense.
The second flaw is that these companies will release a subscriber’s information if their trustees tell the company that something happened to the subscriber. But if the company can release the information, that means that it isn’t encrypted and thus open to hacking, a disgruntled employee, etc. They claim to have “military grade encryption” but that is applied only after they have the unencrypted information, and they can still decrypt it whenever they want. This is like claiming that you use military grade locks on your front door with the door right next to a window the keys in the lock!
We designed LegacyArmour to detect a person’s demise programmatically, without human intervention, and while we currently have contracts in place to monitor the U.S. Death Index, we are in the process of upgrading our detection system with multiple data inputs and an artificial intelligence engine. When we detect a subscriber’s demise, we seek out and deliver the contents of the vault to the recipient. Only the recipient that the subscriber designated can unlock the vault using a series of secret questions and answers set up by the subscriber.
Your clients trust you with one of the most important, and certainly longest lasting, financial decisions of their lives. Now you have the opportunity to provide them with a true, life-long (and even post life) service that protects those financial investments and ensures that their wishes are fulfilled. It’s also a differentiator for you that makes your services more valuable. It’s a Win-Win!
If you want more information about what LegacyArmour can do for you, contact us here.