FDR financial professionals manage claim process for Life Insurance Death Benefit; prepares Cash-Flow
Analysis and Budget; Organizes Assets; develops Financial Plan with proper
allocation of death benefit for Income Replacement, creates program to Maximize
Income Distribution for Retirement and Leave Legacy to Heirs.†
OVERVIEW/PROFILE OF CLIENT
What does the client look like (i.e. net worth and location, tax status and other pertinent facts that helped identify the appropriate solution?)
A 56-year old woman whose husband recently passed away.
What does the client need?
The client (widowed wife) needed complete financial direction from us.
Profile the case – dollar amounts, deeper understanding of client's needs – a detailed breakdown of the issue
$2,000,000 death benefit to be invested properly.
Approximately $3,000,000 of assets discovered and in need of proper management and reallocation for income replacement and retirement income
SITUATION
Breakdown of circumstances that client faces:
Prior to her husband's death, the woman was not involved in the family's financial planning. Upon her husband's death, she located files and documents and called upon us to guide her.
Fortunately, we were the financial advisors for the deceased since his early professional years, and set up proper personal planning to help protect his family. We provided him with life insurance, disability insurance, and managed his personal and retirement investments, including college savings plans for his children.
We managed his company's benefit plans, as well.
The disability policy we provided him ultimately replaced his income when he was forced to go on claim years later. His family was able to maintain the same lifestyle without sacrificing any additional resources. And, of course, his life insurance policy became a vital asset for income replacement upon his death in recent months.
What services does the client require?
Initially, we managed the process of filing claims to receive death benefits and reassignment of ownership of accounts and policies.
We met with the client at her residence and assisted in the organization of all policies, statements, bills, and accounts.
Thereafter, we created a budget and a plan to replace income lost from her husband's death and a course of action for reallocation of wealth. The plan is prepared to face the challenges of a volatile market and for maximum tax efficiency. We also planned for her retirement, when the client transitions from accumulation to distributions to pay expenses and leave a legacy to her heirs, as well.
SOLUTION/RESULTS
The Advisor's Answer - what did the FDR advisor do to meet the needs if their client? What happened based on that solution?
A complete budget and corresponding financial plan have been prepared. The portfolio maintains safety and flexibility during an unpredictable market and will allow for an effective transition to increase income during retirement.
Assets include a variation of laddered bonds, alternative investments, variable annuities with guarantees, and brokerage accounts with active and passive management.
The client now has peace of mind that her finances are being properly managed through a plan which will protect her throughout her life and leave a legacy to her loved ones.
†This case study results is for illustrative purposes only and should not be deemed a representation of past or future results.