Editorial
is allowed to expire prematurely as a result of a combination of sustained lower interest rates and a lack of
policy performance evaluation and review process. Too often I see a client calling their stock broker several
times a week to go over a $50,000 or $100,000 investment portfolio, yet they neglect to pay the same attention
to a $500,000, $1,000,000 or more life Insurance portfolio. An interest sensitive universal life contract where
the insured assumes all performance risk must be actively managed just like any other asset class.
Since many of these contracts were taken out 20-25 years ago in the mid 80's when the interest rates were
significantly higher (13-15%) than they have been over the last 10-20 years, many of these contracts are expiring
by as many as 8- 10 years earlier than anticipated. Evaluating the performance of a life insurance Portfolio every
4-5 years allows an individual to make sure they're still getting maximum value. In addition it allows them to
take advantage of all the new features available since the recently enacted Pension Protection Act, (2010) and
make certain that their contract won't expire prematurely based on incorrect assumptions regarding interest
rates made years earlier when rates were higher.
One thing is certain — an individual is always better off if they take the time to overcome their own inertia
which I call P.D.D, planning deficit disorder. By reviewing their current situation and comparing what they now
have as opposed to what better arrangement may be available they may avoid a potential crisis and take
advantage of new laws which provide a greater degree of flexibility than what may have been available when
they initially made their plans.
Henry Montag, partner in Financial Forums Inc., is an Independent Certified Financial Planner, in practice since 1976 with offices
on Long Island and NYC. Henry has lectured extensively on the subject of the proper utilization of financial products to protect and
preserve assets, for individuals and business owners to organizations such as the New York State Bar Association, the New York State
Society of CPA's & the National Conference of CPA Practitioners, as well as various regional banks and civic organizations.
Over the years he has developed an understanding of the overall coordination of a client's assets, their goals as well as the features
and benefits currently available in the financial marketplace today. He has been quoted in The Wall Street Journal, Investor's Business
Daily, Newsday, Long Island Business News, Investment News, etc. He has appeared as a guest on Fox News, News 12, FIOS T.V. as
well as many radio financial talk shows.
HENRY MONTAG CFP
516-695-4662
[email protected]
WWW.FINANCIALFORUMSINC.COM
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