Risk Management - The Needed Paradigm ShiftFor over 35 years, owners of flexible premium non-guaranteed death benefit policies have either overlooked their risk management responsibility or mistakenly relied upon sales agents and issuing carriers that do not provide post-sales performance monitoring and risk management services. The policy owner is solely responsible to monitor and manage policy performance risks. Risk management of ‘in-force’ policies should start with the understanding that the carrier illustrations used for sales purposes calculated future policy values known to be unachievable based upon unrealistic crediting rates and calculation methodology. Despite carrier and sales agent disclosures, policy owners have elected not to monitor and manage these known risks. And, not surprising, the longer the inattention period, the higher the probability of policy lapse without value. Life insurance counseling plays a critical role in initial and ongoing annual carrier, product and management decisions in order to maximize the probability of a favorable planning outcome. Further, recognizing the performance monitoring and risk management inattention given most non-guaranteed policies, credible expert consulting has become the first step in evaluating an existing policy’s current carrier, product and policy suitability based upon the purchaser’s current objectives. TAC offers both risk management counseling and consulting services. Policy analytics employ dispute defensible evaluation. The need for a prudent and reasoned life insurance management process is known and contemporary risk management tools are available – they just need to be implemented, and annual performance reports shared with other counseling advisors as directed by our client.