Insurance policies can have flaws that present dangers to you. If you haven’t had an insurance checkup in the past few years, it’s time to find out whether your policy is up to par. Otherwise, you might not understand what’s happening until it is too late. It is important to have your entire insurance portfolio reviewed to determine how well protected your organization is against the exposures you face.
At The Rubin Group, we offer independent policy analyses as part of our consulting services, and would be happy to comb through your insurance portfolio to determine just how protected your business is against its greatest risk exposures. Here are some of the benefits of a policy analysis.
Low Investment Returns on Cash Value
Roughly 20 years ago, individuals were encouraged to add extra cash to policies, growing tax-free at a projected interest rate. Another variety allowed investment choices such as mutual funds for the extra cash within the policy. Cash value growth would vary depending on investments.
When these policies were purchased years ago, many of these projected premium “illustrations” were based on the assumption that interest rates would continue to be 8 to 10 percent, and that enough extra cash value would build up to help pay premiums in the future. But illustrations are not promises.Interest rates have dropped to the minimum guaranteed rate and have stayed low for years, resulting in lack of cash inside many policies to pay the annual premiums.
Cover Your Bases
Borrowing cash out of the policy is tax-free and so convenient that many people forget to repay the loan. In some cases, those unrepaid policy loans trigger a larger premium requirement to keep the policy in force.
Ask your insurance agent directly for a current analysis of the cash in your policy, the premiums and the outlook for future premiums. This report will reveal how long your insurance will stay in force at the current payment schedule or how much more you will have to pay each year to keep it going.
Reviewing your policies and coverages, including sub-limits, coinsurance clauses and deductibles, to help ensure the amount and scope of insurance, will protect you against a catastrophic loss or devastating litigation. There may be coverage issues that may otherwise remain unaddressed, so broadening your protection and avoiding coverage disputes after losses is critical. Obtaining the big-picture view of your risks and pinpointing any gaps that may exist because of policy exclusions and lack of coverage can truly make all the difference in the safety of your business.
Utilize an independent policy analysis to ensure you’re complying with coverage requirements and maintain all necessary endorsements. An evaluation of any subcontractor’s insurance documentation to verify their compliance with their obligations is also beneficial.
You have insurance for a reason, so follow through for complete peace of mind, with an insurance checkup.
About The Rubin Group
Based in New York, The Rubin Group provides insurance in most of the 50 states. Our full-service insurance brokerage provides insurance and risk management services to individuals in all income brackets and businesses of all sizes and types. We understand that every client has unique coverage requirements, and we are passionate about providing the ideal individualized coverage for each customer. Each member of our team takes the time to truly understand your situation, the particular risks you anticipate – and the very real risks you’ve not yet contemplated. For all of your insurance needs, contact us at The Rubin Group!