CASE: Referred by her CPA, a practicing dentist reached out to us for an independent consultation regarding several life insurance policies purchased for herself and her family about a year prior. Her primary goals were to explore tax-advantaged planning strategies, reduce her tax burden, and grow her investments. However, she also admitted she had felt pressured into working with a particular advisor and wanted to ensure her decisions were truly in her best interest by seeking an independent second opinion.

CHALLENGE: The client wanted objective guidance free from personal bias or sales pressure. After reviewing her first year of policy statements, she noticed discrepancies between what was originally promised and the actual performance. Much of what was presented to her at the time of sale no longer seemed clear or aligned with her family’s needs, which triggered her concern and prompted her to seek outside expertise.

SOLUTION: As fiduciary professionals, we focused exclusively on her best interests. We conducted a thorough review of the original recommendations, current policy performance, and overall financial objectives. Using our proprietary LIR Report™, we provided a transparent, comprehensive analysis of her options. This independent report not only clarified her situation but also empowered her with the confidence to evaluate alternatives beyond her friend’s recommendations.

RESULT: The client ultimately decided to cancel two of the cash value policies that had been sold for her children, while keeping and restructuring her two existing policies for improved efficiency. By delivering clear, impartial guidance and tailoring solutions to her needs, we helped her make choices that better aligned with her financial and family goals. This case highlights the importance of objective, fiduciary advice—especially when personal relationships and sales pressure may cloud judgment.

CASE: A CPA referred a client for a review of their long-held non-qualified annuity, seeking improved alternatives. The client also expressed a strong need for LTC insurance/coverage, having proactively saved for potential future care expenses.

CHALLENGE: While the existing annuity offered competitive interest rates, it lacked essential benefits beyond tax deferral. A comprehensive needs analysis revealed a critical need for LTC coverage, as the client otherwise faced the prospect of self-insuring, dollar for dollar, against potentially substantial care costs.

SOLUTION:

• We conducted a thorough review of available options.

• We presented the client with the opportunity to execute a 1035 exchange, enabling a tax-free transfer of the annuity's value.

• We facilitated the exchange into a life insurance policy equipped with a robust LTC rider/benefit.

RESULT: The client now possesses a significantly more robust and secure LTC plan, effectively addressing their long-term care needs.

• By leveraging a 1035 exchange, the client transformed an annuity offering only tax deferral—and future ordinary income tax liability—into a life insurance policy with integrated LTC benefits.

• This provided a superior solution, aligning with their financial goals and providing much needed security.

• Both the client and their CPA expressed high satisfaction with the proposed solution and its implementation.

This case underscores the strategic value of:

• Proactive financial reviews to identify optimization opportunities.

• Utilizing 1035 exchanges to maximize asset efficiency.

• Integrating LTC planning into comprehensive financial strategies.

• Providing solutions that provide both tax efficiency and security.

CASE: An estate planning attorney referred a client, well-versed in the "Buy Term and Invest the Difference" strategy, sought a term life insurance policy that maximized value by offering the lowest cost possible while still including valuable living benefits (because his family has a history of strokes). However, he had recently purchased a term policy and was now past the "free-look period," making it seem like he was locked into that potentially less optimal choice.

CHALLENGE: Despite his initial decision, the client was concerned that his current policy might not be the most cost-effective option available. Our analysis confirmed this, revealing that his existing policy was 20-30% more expensive than comparable term policies with similar living benefits.

SOLUTION: We conducted a thorough review of his current policy and presented him with alternative options that offered better value. To empower him to make an informed decision, we encouraged him to conduct his own research as well. Interestingly, the options we presented proved even more competitive than those he found through online quoting engines and marketplaces.

RESULT: Our commitment to transparency and client education, coupled with our fiduciary approach, gave the client the confidence to switch to a more cost-effective term policy with enhanced benefits. This change significantly improved his overall financial plan by:

• Increasing coverage: He was able to secure a higher death benefit for the same or lower premium.

• Enhancing financial flexibility: The lower premiums freed up more funds for his investment strategy, allowing him to allocate more towards his long-term financial goals.

• Providing peace of mind: He now has the assurance of knowing his family is well-protected with a superior policy at a lower cost.

This case study highlights the importance of ongoing policy review and the value of working with a trusted fiduciary who prioritizes client's best interests.

Case: A client with a paid-off home, $200,000 in savings, and $1 million in retirement accounts was referred to us by his CPA. He was deeply concerned about the potential cost of long-term care for himself and his wife.

Challenge: Despite the client's initial reluctance to prioritize LTC planning, the realization that such care could severely deplete their assets and impact their legacy for their grandchildren became a major concern. Alarmed by statistics from longtermcare.gov, they requested a comprehensive LTC plan proposal.

Solution: We conducted a thorough needs analysis and reviewed the client's previously explored options to gain a comprehensive understanding of their situation. To facilitate informed decision-making, we encouraged the client to continue their independent research and consult with their financial advisor.

Result: Our commitment to transparency, client education, and a fiduciary approach instilled confidence in the client, enabling them to select a suitable LTC solution from the options presented. This decision significantly enhanced their financial plan by:

• Protecting their Retirement Portfolio: Ensuring that LTC expenses would not necessitate excessive withdrawals from their retirement accounts.

• Creating a Guaranteed Asset for LTC: Establishing an LTC plan that provides a tax-free income for care or transfers to their grandchildren if unused.

• Providing Peace of Mind: Offering assurance that their LTC needs are adequately covered by a robust policy.

• Securing Lifetime LTC Protection: Implementing a hybrid policy that guarantees ongoing monthly benefits for the duration of their LTC needs, without the limitations of traditional policies with capped payouts.

This case study exemplifies the value of partnering with a trusted fiduciary who prioritizes client interests and provides comprehensive, tailored solutions.

CASE: A 71-year-old male, referred by his CPA, held a 20-year term life insurance policy, originally purchased as part of a buy-sell agreement. This policy was no longer needed and set to expire in just 5 months.

CHALLENGE: The client's wealth advisor referred him to us to explore options for his expiring policy. The goal was to maximize its value before it lapsed, potentially recouping some of the invested premiums rather than receiving nothing at all.

SOLUTION: We conducted a comprehensive policy review, which included an analysis of its conversion option. While the policy could be converted to permanent coverage, the terms were not as favorable compared to other options. To ensure the client was fully informed, we performed a detailed cost analysis illustrating the financial implications of converting the policy versus letting it expire. This analysis helped him understand the policy's true value within the context of his overall estate plan.

Simultaneously, we leveraged our network to market the policy to over 90 potential buyers in the life settlement marketplace. This competitive bidding process ensured the client received a fair and competitive offer for his policy. Ultimately, he decided that selling the policy through a life settlement was the most advantageous course of action.

RESULT: The client was extremely pleased with the outcome, having received a significant financial benefit from a policy he no longer needed. This positive experience led to multiple referrals to his wealth advisor, further strengthening our collaborative relationship and demonstrating the value of our specialized expertise.

Since 2011, we have reviewed countless life insurance, annuity, long-term care (LTC), and disability policies and design cases. As the only independent agency in Southern California licensed by the state to perform these policy reviews, we are uniquely positioned to serve as your trusted partner. We operate with a fiduciary duty to act in your client's best interest and are not associated with any financial or marketing company that pushes specific life insurance products or plans.

Recently, published our first book, Life Insurance Confidential - Don't Let Yourself Own a Bad Policy and it includes 12 detail case studies from our LIR Team.