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So far ITM TwentyFirst has created 55 blog entries.

TOLI Trustee Work Load and Liability Climbing as Use of ILITs Diminish

Updated 11/6/19 Originally posted 8/1/18 As the federal estate tax laws changed, the use of new irrevocable life insurance trusts (ILITs) diminished, but the work required to administer existing ILITs went up along with the potential liability attached to the asset class.  There are several reasons for this. As a country, we are aging and the population of the average TOLI portfolio is aging too. [...]

Genworth Life and Annuity Insurance Company to Raise Cost of Insurance on Gold Policies

This week our New York City office received letters alerting us of a cost of insurance (COI) increase for Genworth Life and Annuity Insurance Company “Genworth”. Over the last year, Genworth has only produced illustrations based on guaranteed rates and guaranteed cost of insurance rates for certain products, citing insurance regulations. This follows a similar pattern of other carriers including John Hancock Life Insurance [...]

All About Equity Index Universal Life (EIUL) – Part Three: Illustrating the Policy

In the last two posts, we explained the popularity of the equity index universal life policy, as well as the mechanics of the policy. While the policy is tied to an equity index, it is a fixed product, with the bulk of the premium going into the carrier’s general account to satisfy the floor and the balance – a much smaller amount – going [...]

All About Equity Index Universal Life (EIUL) – Part Two: Policy Mechanics

In the first posting in this series on the equity index universal life (EIUL) policy, we talked about the popularity of the policy and the general characteristics of the policy. In this post, we will outline the mechanics of the policy. As we mentioned in the first post, the policy cash value is tied to an index, for example, the S&P 500. The gain [...]

All About Equity Index Universal Life (EIUL) – Part One: The EIUL Policy

A Three-Part Series for Trust-Owned Life Insurance (TOLI) Trustees As the back-office administrator of thousands of life insurance trusts for fiduciaries across the country, we deal with every type of policy. We have found the equity index universal life policy to be one of the most misunderstood policies in the TOLI space. This three-part series provides a thorough background in the policy, its mechanics, [...]

What You Need to Know About Life Expectancy Estimates

Life expectancy estimates are used by life insurance companies and other organizations in various ways. The Life Settlement market relies heavily on this type of data to ensure the health of their portfolios. Let’s take a look at how life expectancy estimates are created, and what they include. How Life Expectancy Estimates are Calculated Life Expectancy (LE) estimates take a number of factors into [...]

3 Trends in Corporate ILIT Administration That You Should Be Aware Of

As we move into the second half of 2019, there are three continuing trends with respect to TOLI management in the corporate fiduciary space.  If you find yourself managing or overseeing TOLI at a bank or trust company, I’m sure you are seeing some of this play out in your own department. TREND #1 Overdependence on Support Software If used correctly, ILIT support software [...]

TOLI Trustee Alert: Managing Variable Universal Life Policies Comes with Specific Challenges

Variable universal life (VUL) policies, whose sales took a nosedive after the 2007-09 market crash, have had a resurgence. Last year (2018) sales jumped, with annualized premiums from new VUL sales increasing by 14% over the prior year. (1) VUL policies provide the policy owner with the opportunity to invest in the equity market. The cash value in the policy is held in separate accounts [...]

Two Current Life Insurance Sales Trends Highlight Reasons TOLI Trustees Must Be Extra Vigilant Now

According to information gathered on life insurance sales, two distinct trends are clear.  Overall, life insurance sales are mostly flat – up less than 0.5%. (1) However, sales are up with two product lines: variable universal life and equity index universal life. In 2018, sales of VUL policies were up 9%, while sales of EIUL policies set a record. (2). Total universal life insurance sales [...]

Join ITM TwentyFirst for a Week-Long Education Course on Unique and Hard to Value Assets

We at ITM TwentyFirst have always been very proactive about continuing education. Just like many other industries, the unique and hard to value asset industry is always changing and filled with complexity. Our team members, and the company as a whole, participate in several continuing education efforts every year. This July, we will be taking part in a week-long course focused on administering Hard to [...]