About Mark Pace

T. Mark Pace

When there is an immediate need for cash at the time of someone’s death, it has been my experience that life insurance, when properly acquired and managed, is one of the best tools ever invented for the creation and transfer of wealth. However, life insurance is rarely acquired properly and, because it is mistakenly assumed to be a "buy and hold" asset, it is never managed. The resulting financial disasters are far too frequent and completely avoidable.

If you would like to learn more about any Pig-in-a-Poke blog posts or discuss any other life insurance issues, contact T. Mark Pace at Mark@objectivereview.com

 

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Pace’s Pig-in-a-Poke

About Pace’s Pig-in-a-Poke

Pace’s Pig-in-a-Poke, provides an arena for sharing the four great passions in my life. My three foundational passions are:

  1. Invest in yourself first;
  2. The genius in all of us, and;
  3. We can all live a long healthy life.

These three support my life work and my fourth passion; LIPM™ (Life Insurance Property Management).

As the blog title suggests, my focus is on debunking all of the myths, misuse, and muddled thinking that has accumulated in the life insurance industry. And, from time to time, I will go outside of the specific world of life insurance and share my views on my other three passions.

I hope you find my blog worthy of your attention, informative, and occasionally inspirational. I welcome your comments, questions and suggestions.

Mark Pace

Big cases are rarely sweetheart deals!

Achieving the best possible results when placing large life insurance cases requires much more advocacy on the part of the agent or advisor than most people expect or even understand is possible… especially when the insured is getting on in age.

The Poke:

There is a common misconception among advisors and their clients that the bigger the life insurance case, the more aggressive the insurance companies will be in trying to win the business. This misconception is most often fostered by well meaning but naïve agents who may be overly focused on the commission available in large cases.

The fact is, most insurance companies are very cautious about accepting large cases, especially when the insured is over 75 years old.

Since most carriers have relatively few policies on their books covering people older than 75, one large claim can dramatically impact their profitability.


The Poke Exposed:

In past years, during the hay days of life settlement, large cases were slipping through without adequate justification and oversight. Nowadays, the insurance companies have grown increasingly wary of large cases on older lives and do not go out of their way to land these “deals”. In fact, the opposite is true; cases of this type are scrutinized in a highly critical fashion before being accepted.

 

Pace’s Poke Remedy:

Fiduciary advisors who wish to assist older clients in the acquisition of large life insurance policies, need to find quality advisors with a proven advocacy track record in this specialized arena. What you want is a practical realist who knows what the insurance companies require in order to find large cases acceptable.

These are the three fundamental advocacy elements:

  • Assessment of medical history and appropriate medical issue advocacy
  • Preparation and management of financial justification (the ability to finance and a proven need)
  • Management of retention and reinsurance capabilities of carriers involved

 

One final warning:

The great danger in not getting the right help from the outset is, once you try to place a large case and you run into trouble – such as receiving an unreasonable rating or outright refusal – the damage is done to the case and virtually impossible to reverse.

(The material provided in Pace’s Pig-in-a-Poke is for informational purposes only.  T. Mark Pace and ObvjectiView are not authorized to, and do not provide accounting, income tax, or legal advice.  You are encouraged to seek out assistance from your accounting or legal professional before taking any action.)

About the author

Mark Pace
Mark Pace
When there is a need for immediate liquidity at the time of someone’s death, it has been my experience that life insurance, when it is properly acquired and managed, is one of the best tools ever created for the creation and transfer of wealth. However, in my 35 plus years of experience, life insurance is rarely properly acquired and never managed… thereby creating a monumental financial disaster for many individuals that should never happen.

If you would like to learn more about this Pig-in-a-Poke subject or discuss any other life insurance issues, contact T. Mark Pace at Mark@objectivereview.com

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