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So far mbrohawn has created 135 blog entries.

New Report on Interest Rates and Life Insurance Carriers Notes Concern

In the past few years, we have had no shortage of entries about the historic low-interest-rate environment and the beating that life insurance policies took because of it.  Whole life dividends have dropped, current assumption universal life performance has been driven down, and in some cases, cost of insurance (COI) increases have raised carrying costs by over 200%. All primarily because of low-interest rates.  We [...]

2018-05-07T06:04:49-05:00May 7th, 2018|Uncategorized|0 Comments

Lawsuit Filed Against Phoenix for 2017 Cost of Insurance (COI) Increase

On April 19th, a class action lawsuit was brought in the Southern District of New York against PHL Variable Life Insurance Company (Phoenix) for subjecting policyholders “to an unlawful and excessive cost of insurance (“COI”) increase” …“in violation of their insurance policies.” We reported on the cost increase in August of last year. A 2010-11 COI increase resulted in a 2015 settlement against Phoenix for [...]

New Transamerica Cost of Insurance Increase Is One of the Largest Yet

In the summer of 2017 we posted a blog about another Transamerica cost of insurance (COI) rate increase affecting Ultra 115 and TransSurvivorship products purchased in 1998-99. We anticipated that the increases would be around 58%—a hefty raise. What we are seeing now could easily surpass that. We are now beginning to receive notices of monthly deduction rate increases for some policies. Some of the [...]

3 Reasons to Move Your ILITs to Life Insurance Trust Company

Recently we posted a blog listing the top three reasons to outsource your life insurance trust administration. All three reasons made sense, but for some TOLI trustees, the most logical tactic may be to simply divest of this asset. Let’s face it – the TOLI market is not growing; in fact, it is stagnant. Some experts estimate your prospects number only one in every 1,000 [...]

3 Reasons to Outsource Your TOLI Trusts

Currently in the trust-owned life insurance (TOLI) world, we have sailed into a perfect storm of issues that make outsourcing your TOLI trusts more compelling than ever. There are plenty of articles on the varied reasons for outsourcing. And all, or at least the majority, of them are valid. Here are three stand-out reasons to outsource: The TOLI market is not growing, so why allocate [...]

How About Just Doing the Right Thing?

During an ITM TwentyFirst University webinar on trustee liability, I described a replacement case that came into our remediation department. A grantor with a whole life contract in his trust had decided to stop gifting. His agent advised him to complete a 1035 exchange of the cash value from the existing policy into a new current assumption policy. The exchange, with no other premium, would [...]

NCOIL Tables Model Legislation Efforts to Deal with Cost of Insurance Increases in Life Insurance

NCOIL, the National Council of Insurance Legislators, met in Atlanta last weekend to discuss, among other things, “legislative solutions to unjustified premium increases (1).” NCOIL is an organization made up of state legislators interested in insurance and financial matters, many of whom serve on related committees in their home states. The goal of the organization is to inform state legislators by creating a venue for [...]

The ITM TwentyFirst Solution for Lost Insurance and Pension Benefits

60 Minutes, the CBS news magazine, looked at the problem of unclaimed life insurance benefits in 2016. Lesley Stahl interviewed Jeff Atwater, Chief Financial Officer of Florida who had worked with many of the top companies to get benefits paid to policyholders that had died as far back as the 1960s. Who were the carriers? According to Mr. Atwater, “all the large brand names that [...]

2018-02-26T12:32:05-06:00February 26th, 2018|General Interest, News|0 Comments

The Life Insurance Dividend Season (Continued)

In an earlier entry, we reported on the dividend declarations from two of the gold standard mutual insurance companies – Northwestern Mutual and Massachusetts Mutual. Both are very highly rated carriers, and have paid dividends each year for well over 100 years. However, like most insurance companies these days, both are feeling the effects of the historic low interest rate environment, and as a result, have [...]

The Year in Review: Trust Owned Life Insurance (TOLI) in 2017

Posted on December 1, 2017 by mbrohawn While 2017 was another challenging year for those of us who manage life insurance portfolios, ITM TwentyFirst started the year highlighting the efficiency of life insurance in an ILIT as a preferred method of passing wealth to the next generation. In our first post of the year we cited an example of a 65-year-old couple in good health purchasing a survivorship guaranteed universal [...]

2018-02-09T11:00:32-06:00February 9th, 2018|Uncategorized|0 Comments