A quick read for agents who want to find cases they didn’t know they had.

If you’ve been in this business for any length of time, your clients almost certainly have old life insurance policies sitting in a filing cabinet somewhere whole life, universal life, maybe an annuity from a previous advisor.

These contracts have accumulated cash value over the years, and in many cases that value is sitting in a product that no longer fits the client’s life. That’s where a 1035 exchange comes in. Under IRS Section 1035, a client can transfer cash value from an existing life insurance policy or annuity into a new contract without triggering a taxable event. The gain moves tax-deferred into the new product, the coverage continues, and the client gets a solution that actually fits where they are today. Think of a Roll-Over but for Life Insurance.

The conversation starter is simple: “When was the last time someone actually reviewed your life insurance?” Most clients will tell you it’s been years or that the agent is no longer in business.

From there, obtain a current statement and/or the original policy, a good practice is to request an in-force illustration from the existing carrier, get a handle on the cash value, cost basis and the current cost of insurance, you can run illustrations in Quote&Apply. Within seconds you can pull real-time quotes across top permanent carriers: IUL, GUL, VUL and Whole Life.

The 1035 transfer involves coordination between carriers and a specific sequence of paperwork. BOSS and our Case Management Team, tracks it all so nothing falls through the cracks and the case closes with ease.

If you haven’t already, take a look at the clients in your current pipeline or book of business and ask yourself how many of them you’ve never had a policy review conversation with.

That’s your list. The cases are already there they just need someone to ask the right question.

If you want help identifying which clients might be the best candidates for a policy review, or you have a 1035 case you want to work through together, please reach out, there is a list of contacts in BOSS under your profile. That’s exactly what we’re here for at BackNine.