Forensic Reviews FAQ – Sheridan Wealth Advisors

Forensic Reviews FAQ’s

What are the different types of Forensic Reviews does Sheridan Wealth Advisors provides?

Forensic Reviews of Life Insurance.
Forensic Reviews of Annuities.
Forensic Reviews of Life Settlements.
Forensic Reviews of Long Term Care.

How much has Sheridan Wealth Advisors improved our clients' policies?

We have added over $200,000,000 in saved premiums and increased death benefits, not including other benefits such as fixed-rate long term care, longer guarantees and/or the rescue of prematurely lapsing policies

How long has Sheridan Wealth Advisors been in business?

19 years, since 2002.

Does Sheridan Wealth Advisors only work with clients in Florida?

No, we work nationwide.

Forensic Reviews of Life Insurance FAQ

What is the typical decrease in premium rates from our Forensic Reviews while keeping the same death benefit?

An average of 50%.

What is the typical increase in Death Benefits from our Forensic Reviews while keeping the same premium?

We spreadsheet the entire industry! Premiums, products, and underwriting guidelines all vary greatly by carrier. We do not rely on one company to provide you the best available solution because no one carrier can be the best for everyone all the time.

Do all A+-rated carriers charge the same premiums?

No, not even close. A+-rated carriers can charge as much as 50% more than other A+-rated carriers for the same death benefit so it’s vital to spreadsheet the industry.

What is the benefit of having cash inside the policy?

Cash in a policy is good for 3 things while the insured is living.
- Using it as a line of credit to borrow against, typically at expensive rates (4% – 8%).
- Paying premiums on the policy.
- Most productively, using it in a 1035 Tax-free exchange to either lower premiums or increase death benefits in a new policy.

Who gets the cash inside a policy at the insured's passing?

The carrier pays the death benefit and keeps the policy cash.

What is a 1035 Tax-Free Exchange?

Section 1035 of the IRS Tax Code allows for cash that has built up in a permanent policy (Whole Life or Universal Life, not Term) to be transferred into a new policy, tax-free.

Does Sheridan Wealth Advisors only work with A+ carriers?

Yes.

My business didn’t start operating until after February 15, 2020. What is a Recovery Startup Business and can I still claim a credit?

If your business started after February 15, 2020 and your gross receipts are under $1M, you may qualify for ERC as a Recovery Startup Business. You don’t have to demonstrate a loss in gross receipts in order to qualify for ERC.
This is the only type of business eligible for ERC in Q4 of 2021.

Annuities FAQ

Why are the new indexed annuities better than older indexed annuities?

Fees have been reduced and frequently eliminated, more investment options have been added and benefits like long-term care are now available.

Why are indexed annuities better than variable annuities?

Fees: Indexed annuities fees are 0% to 1% vs. 2% to 5% for variable annuities.
Risk: Principal is guaranteed and gains are locked in permanently whereas variable annuities are impacted by stock market gains and losses.
Lifetime Income: Indexed annuities typically pay out higher annual income for life.

Is there any medical underwriting with annuities similar to life insurance?

No. There is no medical underwriting with annuities, the only criteria is financial suitability.

How long will it take to place a new annuity contract if I decide I like the options Sheridan Wealth Advisors presents to me?

Typically 2 to 4 weeks.

Life Settlements FAQ

How long will it take to place a new annuity contract if I decide I like the options Sheridan Wealth Advisors presents to me?

These companies want to buy policies for themselves…for the lowest possible price, whereas the policy owner of course wants to maximize the policy’s value.

What's different about Sheridan Wealth Advisors approach to getting the highest possible sales price for policy owners?

We act as YOUR broker, not the buyers. Sheridan Wealth Advisors presents your policy to a network of qualified buyers to obtain the highest price available.

How long does it take to sell a policy?

Typically a policy can be sold in 90 days though circumstances can put that out for another month or two.

Long Term Care FAQ

What are the differences between a "Stand Alone" Long Term Care (LTC) policy and a "Hybrid" Life Insurance policy with a Long Term Care rider?

Stand Alone Long Term Care policy is akin to “use it or lose it” insurance, like automobile or homeowners insurance: You pay an annual premium which can be raised at the carrier’s discretion, and if you never file a claim you get nothing for having paid the premiums.
Hybrid policies with an LTC rider is a life insurance policy with a provision for paying LTC expenses. If you never need LTC your family gets the entire life insurance benefit. If the LTC benefit is used, then the life insurance benefit is reduced dollar for dollar.
Hybrid policies have fixed rates that are locked in for the life of the policy and can’t be raised.

What is the difference between "Reimbursement" and "Indemnity" LTC policies?

Reimbursement: The more common type of plan repays the LTC owner for all “Qualified” expenses, like a registered nurse or assisted living facility.
Indemnity: Gives the LTC owner benefits that can be used in any way the owner wants, whether that would be to pay a family member for help, pay the mortgage or fix up the house to provide accessibility and comfort.

What is the cut-off age to obtain a Hybrid policy?

Can one get LTC coverage if they already use a wheelchair, cane, or walker?

Generally not once mobility becomes limited.

*Many states offer helpful guidance and information. See, e.g., the following Florida government websites:

Understanding Coverage Consumer Guide

Florida Insurance Guide

The 2022 Florida Statutes

Selling a Business FAQ

What’s the most crucial factor in selling a business for its maximum value?

Doing all the work upfront, so when you’re selling, investors see you have a bankable enterprise

How much time do I need to plan prior to selling?

As much time as possible, preferably a year or two ahead of time.

I’m interested in selling but how do I decide on a price?

Our Advisory Alliance partners are national experts in appraisals and will help you understand your firm’s market value.

Update Professional Relationships FAQ

I’ve got offices in six cities. How can these firms coordinate with all of them?

Not a problem. All of the advisory firms we work with have national and even international capabilities.

I’d like to switch to larger firms but I want to work with a senior partner, not a lower-level employee.

That’s where we come in. Our connections at these firms are all senior partners.

What if I only need one or two of those advisors?

We can introduce you to several firms or only one. The choice is yours.