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