Success Stories
The Doctor & Cash Flow
When Paying Too Much Is Too Evident
Prescription for Success
The good doctor came to us this year upset over the cost of his life insurance. He said, “I can’t afford this anymore” My practice is all elective surgery, and because of Covid-19, my cases are significantly down. We did a thorough review and discovered the doctor-owned two whole life policies totaling $2,000,000 of death benefit. His premiums were a total of $49,000 and were payable to age 65. The doctor indicated several times the plans were too expensive; the cash value was unimportant to him, and he just wanted to protect his children. Generally, pay to 65 whole life policies have good value but carry a hefty cost.
We suggested an exchange of the policies into pay to 65 guaranteed variable universal life policy. His current policies with a cash surrender value of $83,000 were exchanged, and his new premium is $18,000. The doctor was so happy he referred two other doctors to us. He saved $31,000 a year in cash flow, which he redeployed into his practice. When things get back to normal, he will reassign the savings into his brokerage account for future use.