2014 – A TOLI Update for Trustees

As we end 2014 I wanted to post some observations from the past year. The TOLI business is not growing, at least not significantly. We are still feeling the estate tax filing threshold jump to an indexed $5M. As the number of prospects drops, so does the number of new clients. Yes, there are reasons other than estate taxes to hold a policy in a [...]

Turning the Battleship Around…An Update

In my last blog, Turning the Battleship Around…Has it Started?, I wrote about Whole Life dividend trends and stated perhaps the dividend slide might be “leveling off and slowly trending upward.”  I based that thinking on the fact that of the “Big 4” Whole Life carriers—Northwestern Mutual, Mass Mutual, Guardian Life, and New York Life, three had “either maintained or increased their dividend rate,” which I [...]

Turning the Battleship Around…Has it Started?

One of the great challenges facing those of us who manage life insurance has been the long-term trend in interest rates. This is particularly true with Whole Life insurance. As the chart below shows, the drift in dividends has sloped downward for the last 28 years. And, today’s environment is especially challenging as we wallow in historically low interest rates for fixed investments. The cash [...]

2014-11-18T18:41:35-05:00November 18th, 2014|Policy Management, TOLI Administration, Whole Life|1 Comment

An Ongoing Case in California You Should Be Aware Of If You Are a TOLI Trustee

An interesting class action lawsuit filed in January of this year is unfolding in California. The case, Larry Grill et al v. Lincoln National Life Insurance Company, was brought against the insurance carrier for “concealing from its insureds the option of a life settlement in connection with their life insurance policies.” In an all too common scenario (which I am sure you have seen), the [...]

New York State Regulators Eying Indexed Universal Life Sales Practices – What Every Trustee Should Learn From This

In a past blog entry entitled, What You (as Trustee) Need to Know About Equity Indexed Universal Life, I wrote about this popular life insurance product, Indexed Universal Life.  One of the problems I spoke about was the sales practices of the agents (and carriers) providing the product. In the blog entry, I mentioned that some carriers and agents assume crediting rates in the policy that [...]

2014-09-29T13:17:43-05:00September 29th, 2014|Equity Index Universal Life, TOLI Administration|2 Comments

What a Difference a Day (or Two) Makes…..Thousands of Dollars in this Case

Over a year ago I wrote a Blog entry entitled Are You Sure That Guaranteed Universal Life Policy Is Guaranteed? In that Blog entry I wrote that the key to managing this type of policy is to “pay the policy premium in full and on time each and every year the policy is in effect EXACTLY as shown in the life insurance illustration”. As I mentioned [...]

2014-09-18T15:37:02-05:00September 18th, 2014|Uncategorized|0 Comments

Life Insurers Adapting Investments to the Sustained Low Interest Rate Environment

Life insurance carriers have traditionally been a conservative lot when it comes to investing, with the vast majority of their investable assets in highly-rated bonds and a lower proportion in gold standard mortgages. The last few years have not been kind to anyone investing primarily in fixed investments, and that apparently includes life insurers.  According to an article in Investment News, a poll taken early [...]

2014-08-06T12:59:12-05:00August 6th, 2014|Life Insurance Investments, Whole Life|1 Comment

Update to…Another Life Insurance Carrier is Sold

About a year ago in a Blog entitled, Another Life Insurance Carrier is Sold…Why This Sale May Be Bad News For You and Your Clients, I wrote about the sale of Lincoln Benefit by Allstate Corporation to Resolution Life Holdings, a company I reported “whose mastermind is Clive Chowdry, a well know British entrepreneur”. Two updates on the matter. First, Mr. Chowdry has moved on, at [...]

2014-07-15T12:52:28-05:00July 15th, 2014|Policy Management, TOLI Administration|0 Comments

Life Insurance Underwriting Classifications

In my last entry, Underwriting Life Insurance….What Every Trustee Should Know, I wrote about the steps that should be taken to ensure the best pricing when purchasing a life insurance policy. The difference in underwriting offers can play a large role in the success of the ILIT you are managing.   After all, keeping a policy in force over the lifetime of the Insured is much harder [...]

Underwriting Life Insurance….What Every Trustee Should Know

Recently, the Guinness Book of World Records announced the purchase of the world’s most valuable life insurance policy, a $201 million dollar policy. The previous record according to Guinness (although I have heard tale of cases that surpass both of these) was a $100 million dollar policy on David Geffen, a  founder of DreamWorks Studios, who got his start working with up and coming California rock [...]

A Short Primer on Life Settlements for TOLI Trustees

Back when I was still in the life insurance brokerage world I got my first introduction to life settlements.  I will never forget the first words uttered by the salesman who was presenting that day..."Think of me as a used car salesman, but instead of selling cars I am selling used life insurance policies". I may not be the best marketer around, but I am [...]

2014-02-10T11:01:43-05:00February 10th, 2014|Life Settlements, Policy Management|3 Comments

The ITM Blog is Now One Year Old

Looking back to check a past Blog this weekend I realized that the ITM Blog is now one year old.  I guess we can stop calling it the NEW ITM Blog now.  The first entry, Welcome to the ITM Blog, was posted on January 21, 2013.  I had hoped to post one or two Blogs a month and to date we have posted around 20 [...]

2014-01-27T15:18:46-05:00January 27th, 2014|Uncategorized|0 Comments

What A Pack of Gum Has In Common With ILITs

I just returned from the Heckerling Institute of Estate Planning.  While passing though the Orlando International Airport (MCO) I stopped to get a pack of gum.  I was surprised to find that they do not sell gum at that airport.  It seems that it generates a maintenance issue they would rather not have. It makes sense.  The profit that the airport gets from selling gum [...]

2014-01-19T16:42:30-05:00January 19th, 2014|Policy Management, TOLI Administration|0 Comments

Illustrating Equity Index Universal Life Policies

In my last entry, What You (as Trustee) Need to Know About Equity Indexed Universal Life, I spoke about one of today’s hot insurance products. The EIUL policy is designed to capture a portion of the upside of the equity market, while limiting the downside.  The policy is credited with returns from an index without dividends, with both a cap on the upside and a guaranteed [...]