Sally Wylie, a retiree living on an island in Maine, was stunned when her long-term care (LTC) policy premium almost doubled. According to the Wall Street Journal article that recounted her dilemma, the one-time learning specialist took on part-time work to help with the finances, and she and her husband cut back on expenses to afford the premium for the policy that was purchased to [...]
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 [...]
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, [...]
In August of 2017, we notified you of the pending COI increase from Phoenix Life (A Nassau Re Co.) regarding the Phoenix Accumulator Universal Life and Phoenix Estate Legacy products. While litigation and a class action settlement restricted Nassau from COI increases until after 12/31/2020, the original message indicated that “there will be an overall increase to cost of insurance rates, as well as [...]
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 [...]
Variable universal life (VUL) policies, whose sales took a nosedive after the 2007-09 market crash, have had a resurgence. In 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 and [...]
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 [...]
Put on by the Trusts & Estates CLE Webinar Series - Sponsored by Life Insurance Trust Company Leon Wessels - Life Insurance Trust Company, John Barkhurst - ITM TwentyFirst, Judith Pearson - Nomadx Solutions, Michael Brohawn - Your Life Insurance Solutions, Susan Lipp - Trusts & Estates Irrevocable Life Insurance Trusts (ILITs) have long been a cornerstone of many estate plans—and remain [...]
