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 [...]
Put on by the Trusts & Estates CLE Webinar Series - Sponsored by Life Insurance Trust Company Kenneth R. Samuelson - Morehead Group, Kristin Bulat - NFP & PartnersFinancial, Leon Wessels - Life Insurance Trust Company, John Barkhurst - ITM TwentyFirst, Susan Lipp - Trusts & Estates What is the best investment? The one that is worth the most when needed the [...]
The most common fear for a life insurance trustee is that somehow the ball is dropped and the policy in their care lapses. After all, a trust-owned life insurance (TOLI) trustee, even if they are not sophisticated in all the nuances of life insurance policy management, should at least be able to keep the policy in force. But unintended lapses do happen, and when they [...]
NOTE: The following data and analysis is based on experience through 6/30/2021, prior to the onset of the late-summer surge in COVID cases driven by the Delta Variant. As of this writing the data has not developed sufficiently to allow us to provide insight on the impact of the “4th Wave” on the Life Settlement population. We will provide another update in the coming [...]
The answer is an emphatic NO. Some permanent life insurance policies, specifically guaranteed universal life (GUL) and Whole Life (WL), have required premiums, though WL out of pocket premiums can be reduced by dividends, paid-up addition cash values or policy loans. But the premium paid is not the actual cost of the policy and finding the underlying costs on the policies is a challenge. For [...]
What steps should you take if a grantor says they want to surrender their policy? In the decade-plus that we have been managing life insurance for TOLI trustees, we have noticed that the weak link in their services usually is remediation. The inability to analyze policy options in changing situations is an area of future liability. Some trustees we have spoken with have surrendered policies [...]
