Life Insurance Case Study: Why This Client’s Policy Was About to Collapse

Hi, I’m Frank Biaggi, CEO of Biaggi Life.

Today, I want to talk about why reviewing your current life insurance policy matters more than you think.

Many people assume their coverage is set for life.

But the truth is, without regular reviews, your policy could lapse unexpectedly, or lose value when you need it most.

In this case study, I walk through a real client’s situation and show how a small upgrade led to more coverage, stronger guarantees, and over $100,000 in cash value.

Case Study: A 10-Year-Old Policy That Looked Good on Paper

This client had two life insurance policies, both set up about 10 years ago.

One of them was a $100,000 policy with a $55 monthly premium. It came with a short-term guaranteed premium that only lasted for six years.

On the current side, it showed that it went up to age 86 but with no cash value past that point.

And if the insurance company raised rates, that coverage could end much sooner, even around age 76.



Risk of Losing Benefits Before Age 86

What’s worse is most life insurance agents stay in the business for just about three years.

So by the time issues like this show up, there’s often no agent around to help review the policy or offer solutions.

When policies lapse, it usually catches people off guard.

The insurance company may send a notice, but by then, the cost to keep it active can be significantly higher.

And for someone retired, say in their late 70s, that sudden jump in premium can be unaffordable.

The Second Policy Was Better, But Still Not the Best

The client had a second policy he added after the first. 

This one had a guaranteed premium all the way to age 94, which was a big step up from the original one.

Back then, that was a strong product: guaranteed universal life policies were just becoming available, and only a few companies offered them. It looked like a smart move.

But fast-forward to today, and newer policies now offer more features, better cash value growth, and stronger built-in protection.



New Policies, New Feature: Chronic and Critical Illness Coverage

One of the biggest improvements in today’s life insurance policies is the chronic and critical illness rider, and it’s included at no extra cost.

Here’s how it works:

If you become chronically ill and can’t perform at least two out of six daily living activities (like bathing, dressing, eating, etc.) for at least 90 days, you can access up to 80% of your death benefit—tax-free.

This can be used for:

• Nursing home expenses
• Home health care
• Other long-term medical needs
  
  

What makes this so powerful is that you don’t need to dip into your savings.

You’re using your policy while you’re still alive, turning what used to be a “death-only” benefit into a living asset.

In the past, you would have had to buy a separate long-term care policy. Now, it’s built in.

Upgrading the Policy: More Value for Just $12 More per Month

We ran a comparison between the client’s current premium—$161 per month—and a modern option at $172 per month. That’s a difference of only $12 per month.

Here’s what the new policy offered:

• Coverage: $250,000
  
• Guaranteed to age 90 at that premium
  
• Cash value at age 75: ~$60,000
  
• Cash value at age 90: ~$112,000
  
• Old policy’s cash value: $0 after age 75
  
  

For just $12 more each month, the client gained more than $100,000 in cash value, plus better security and flexibility as he aged.

How to Upgrade: 1035 Tax-Free Exchange

So how do you switch to a better policy?

Through what’s called a 1035 Exchange, you can move the cash value from your old life insurance policy into a new one without triggering any taxes.

This process is straightforward and commonly used when someone wants to:

• Lock in better benefits
  
• Add chronic illness coverage
  
• Increase cash value potential
  
• Improve guarantees on their policy
  
  

Even if you’ve had your policy for years, it’s not too late to switch, and in many cases, the upgrade costs very little or nothing at all.

Final Thoughts

This case study shows exactly why life insurance reviews aren’t just “nice to have”—they’re critical.

For just $12 more per month, this client was able to:

• Upgrade from $100,000 to $250,000 in coverage
• Lock in a guarantee to age 90
• Gain over $112,000 in cash value by age 90
• Add chronic illness protection at no extra cost
• Use a tax-free 1035 exchange to make the switch seamless

If he had never reviewed his policy, he likely would have lost coverage in retirement, after paying into it for decades.

If you haven’t reviewed your life insurance policy recently, now is the time.

Even a small change could lead to a much stronger financial future.

At Biaggi Life, we make sure your life insurance truly works for you.

With decades of experience, I’ll help you secure the right coverage.

If you want an expert to review your policy and protect your best interests, book a virtual meeting today.