While the world of finance can be confusing to navigate, there is no more confusing an area than the insurance industry.
We frequently meet with investors who have various types of insurance and annuity products. With very few exceptions, these investors are not quite sure what they own, what the insurance costs or how it actually works. They were swayed by promises of guaranteed income, tax deferral or lifetime income. What they found over time was that they were over-promised and, in many cases, under-delivered with regards to the actual results (and in some cases sold totally inappropriate policies for their financial situation). Many of these annuities can have embedded fees, hidden costs, poor mutual fund performance, egregious commissions to the broker who sold the annuity, and penalties on withdrawing funds during a long surrender period. Usually, there are cheaper ways to accomplish the financial goals outside of the annuity framework or to exchange to a less expensive policy.
We, at Leisure Capital Management, do not sell insurance of any kind, but it is important for us to be able to provide value in regards to our clients’ insurance holdings. In order to do that, we have partnered with a new type of insurance analytics firm to assist us in this area. We can now pass on analysis, guidance and consulting on insurance and annuity products. If it makes sense for you to keep a policy, this firm can usually find clients a less expensive option without any sales costs. In fact, we recently helped a client cut their annuity costs by 60%, while also increasing their potential income substantially compared their previous annuity policy. If you would like a review of your insurance or annuity holdings, please contact us to schedule a consultation.
-The Leisure Capital Management Team