After an extra annual premium was mistakenly paid, our policy management team helped recalibrate two policies, reduce future premium costs, and maintain guaranteed coverage to age 120.
Case At A Glance
The Situation
Robert and Jean, ages 87 and 82, had two $500,000 survivorship universal life policies held in trust.*
Both policies were designed with guaranteed coverage to age 120, creating long-term protection for the clients and their intended estate planning goals.
On the surface, the policies appeared to be properly funded and performing as expected. But a policy review revealed that one overlooked payment had created an opportunity to reduce future premium costs.
What Went Wrong
Unbeknownst to the client, the trustee mistakenly paid an extra annual premium in 2013.
Because there was a second policy with the same design and premium history, the issue had implications beyond a single policy. Without a detailed policy review, the overpayment may have remained unnoticed, and the clients may have continued paying more than necessary.
What Was At Risk
$9,598 → $8,492
Annual Premium Reduced Per Policy
The extra premium did not threaten the guaranteed coverage, but it created a hidden inefficiency.
The clients had an opportunity to maintain the same guaranteed coverage while reducing future annual premiums. Without review and recalibration, those savings may never have been identified.
This is where active policy management can turn a hidden policy detail into measurable value.
The Resolution
Our team worked with the insurer to recalibrate the policies and reduce the annual premium from $9,598 to $8,492 per policy. That created a savings of $1,106 per policy each year for the next 19 years.
Because the clients owned two policies, the total projected savings came to $42,028. Most importantly, guaranteed coverage was maintained while the clients benefited from reduced future premium costs.
The Takeaway
A policy does not have to be in trouble to benefit from review.
In this case, the review did more than identify a problem — it uncovered an opportunity. By evaluating the policy history, funding pattern, and guarantee structure, our team helped preserve the intended coverage while reducing unnecessary future costs.
Even small administrative details can create meaningful financial outcomes when policies are actively managed.
Could Your Policy Be Costing More Than It Needs To?
Aurum helps trustees, attorneys, CPAs, and other financial advisors identify hidden risks, funding inefficiencies, and overlooked opportunities within existing life insurance policies.
*Client name has been changed to protect confidentiality.
*This example is provided for illustrative purposes only and is not intended to represent the experience of all clients. Individual results will vary, and past outcomes are not indicative of future results.