Life Insurance Annual Service

The purchase of life insurance is a long-term commitment. Insurance is no longer a “set it and forget it” purchase.

1802 Insurance™ understands that, for the insurance to meet the original objectives of your client, it needs to be properly serviced.

For a nominal annual fee, 1802 Insurance™ will provide the following services. You may choose any or all of them, as you desire.

Performance Monitoring Reports

These reports summarize the original objectives of the policy, the details of the ownership, policy type, premium and original premium payment design. Those original objectives are then compared against actual results, and any necessary funding or benefit adjustments are made at that time.

Insurance Carrier Financial Stability Report

We provide you with a peer review of the carrier, including the ratings from various rating agencies as well as the composition of the carrier’s current asset portfolio, which backs the policies written by the carrier.

Underwriting Changes

Often, it’s possible to make changes in or improvements to a policy, which will affect the underlying pricing. Two examples: a health condition could improve, or the insured could stop smoking.

Premium Payment Instructions

When it’s time to pay the premium, we let you know the proper logistics for doing so. For example, if the policy is owned by an irrevocable trust, it is important that the correct steps be followed to exempt the policy from the client’s estate.

Coordination With the Client’s Annual Tax Filings

We can track and provide the amount of gifts made to irrevocable trusts and provide the information to you and your client for gift-tax filing purposes.

Split Dollar Administration

We provide comprehensive annual reporting on all split dollar and split dollar loan regime plans. This includes imputed income, internal loan interest due to any entities that may have loaned the premium, cash flow reports, and cash value reporting and breakdowns on an annual basis.

And, if tax laws change, 1802 Insurance™ is there to explain what the changes mean to you and your client and his or her plan.

The tax and legal references attached herein are designed to provide accurate and authoritative information with regard to the subject matter covered and are provided with the understanding that 1802 Insurance is not engaged in rendering tax, legal, or actuarial services. If tax, legal, or actuarial advice is required, you should consult your accountant, attorney, or actuary. 1802 Insurance does not replace those advisors.