Significant Value Hidden in Your Life Insurance Portfolio

November 19, 2021

Portfolio Review

Life insurance is an important asset in a portfolio. Just like other assets that a person owns, it needs management. To protect the client and maximize the return on their investment, proactive portfolio supervision is key.

We have found countless cases over our many years of managing portfolios of life insurance where we have been able to improve the performance of policies and uncover opportunities for insurance owners to save on expenses. Almost 70% of all life insurance policies have not been reviewed in the past 5 years and 20% of those policies are likely to lapse in the next 3 to 7 years.

Many of our not-for-profit clients have received donations of life insurance over the years. However, we have found that in many cases, these organizations just don’t have the specific expertise or staff to properly manage and monitor these gifts. Of course, these folks want to do the right thing but simply don’t know where to turn for good advice. There is an advice gap in the philanthropic community related to life insurance. Legacy Giving is here to offer some help, we have 5 tracking points that we suggest folks use to quickly determine if their portfolio is meeting targets or not.

  • Lapse Age
  • Death Benefit
  • Premium
  • Credit Rate
  • Carrier Financial Strength

Below is a quick success story of a non-profit that came to us for advice and how we uncovered a significant opportunity for the organization and its donor.


Legacy Giving was asked to review a non-profit’s life insurance portfolio, soon we uncovered a $3M policy that would be requiring a premium within the next year. The donor no longer wished to pay the premium. The contract also had an age 100 maturity issue whereupon the insured’s age 100, the carrier would cut a check for the current cash surrender value only, and the $3M death benefit goes away. The probability of the insured living to age 100 was too risky and it would be catastrophic to the non-profit if they raised the capital to keep this coverage when the death benefit may not be around to help repay that expense.

The best course of action to relieve the donor of their obligation to pay the premium and provide the non-profit with as much benefit as possible was to sell the policy. Legacy Giving was able to obtain $1,075,000 in cash today for the organization and they worked closely with the donor on how that money should be used. The ultimate win-win.

Client: 89 year old female
Policy Death Benefit: $3,000,000
Cash Surrender Value: $186,969
Auction Started: $425,000
# of Bids: 35
Auction Ended: $1,075,000
Valued Created: $888,031

Do you feel that your organization has a clear understanding of the details of your portfolio of insurance? A professional life insurance review can help answer these questions and many more. At Legacy Giving, we have a proven process to make these reviews impactful, easy, and with no disruption to existing relationships. With current policy statements and some basic policy information, we can confirm you are on the right track or uncover issues in the portfolio.

We Make It Easy - Our Process

Legacy Giving makes it easy for a charitable organization to get started with forms, scripts, processes, and training. We have a dedicated team that can handle incoming calls and conversations with donors. Legacy Giving, and its subsidiaries, get paid only when you get paid in the form of contingent compensation. There are no fees to set the program up. Below is our simple three-step process to help your donors accomplish their giving goals.

Legacy Giving Process