When we first ventured into the trust-owned life insurance (TOLI) servicing business, our lead product was a policy tracking and trust administration system - later called InsuranceIQ, and it was light years ahead of anything TOLI trustees had at their disposal. At the time, most trustees simply got an in-force ledger every couple of years, along with a rating update for the carrier, placed it [...]
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 [...]
Last month, ITM TwentyFirst was proud to sponsor FIRMA’s (Fiduciary & Investment Risk Management Association) 35th Annual National Training Conference in Nashville, TN. This marks the 16th consecutive year ITM TwentyFirst has sponsored this important industry event for trust fiduciary risk, compliance and audit professionals, and this year’s event represented the first in-person event since 2019. FIRMA’s Executive Director, Hale Mast, reflected on the [...]
Over the last several years, we have posted several entries dealing with the cost of insurance (COI) increases we have seen in Current Assumption Universal life (CAUL) policies. Starting back in 2015, we were among the first to bring notice on this issue. This week, our Iowa office received yet another COI notice from a carrier joining the ranks – Midland National Life Insurance [...]
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 [...]
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, [...]
Executive Summary This post is a continuation of our analysis on COVID-19’s impact on Life Settlements. Life settlement excess mortality is in decline. Life settlement lives experienced lasting protection from pandemic-related mortality in 2021. We expect COVID’s impact on life settlements will continue to decline in the coming months outside of mild increases driven by future variants of the virus. Life Settlement Excess Mortality [...]
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 [...]
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 is great for minimizing potential administrative miscues. Many of [...]
Very recently, we received the first notice (Notice of Change in Non-guaranteed Elements of your Policy) in what appears to be another wave of COI increases from Transamerica Life Insurance Company. As to why this increase is taking place, the multi-page letter indicates the following: What’s Changing and Why Once a month, Transamerica withdraws a monthly deduction from the policy's accumulation value (i.e., the [...]
