ITM TwentyFirst

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

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 [...]

ITM TwentyFirst2019-10-10T11:22:47-05:00October 10th, 2019|Cost of Insurance (COI) Increase, General Interest, News|0 Comments

Shared Characteristics of Long-Term Care and Life Insurance Cost Increases

Shared Characteristics of Long-Term Care and Life Insurance Cost Increases

Updated 10/8/19 Originally Posted 4/17/18 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 [...]

mbrohawn2019-10-08T11:37:42-05:00October 8th, 2019|Cost of Insurance (COI) Increase, Current Assumption Universal Life, General Interest, News|1 Comment

TOLI Trustees Can Learn From 401(k) Lawsuits

TOLI Trustees Can Learn From 401(k) Lawsuits

Originally Posted 3/26/18. Updated 10/2/2019 Those of us in the fiduciary world are aware of the rash of lawsuits targeting 401(k) plans. Fidelity, the largest retirement plan provider in the US, settled lawsuits filed by its own employees alleging that its plan choices were too costly (1). Vanguard, a firm known for its low costs, was referenced in a suit alleging that by selecting classes [...]

mbrohawn2019-10-02T13:20:17-05:00October 2nd, 2019|General Interest, TOLI Administration|2 Comments

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

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 [...]

ITM TwentyFirst2019-09-17T10:40:58-05:00September 17th, 2019|Equity Index Universal Life, General Interest|2 Comments

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

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 [...]

ITM TwentyFirst2019-09-10T14:07:22-05:00September 10th, 2019|Equity Index Universal Life, General Interest|1 Comment

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

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, [...]

ITM TwentyFirst2019-09-04T11:14:54-05:00September 4th, 2019|Equity Index Universal Life, General Interest|0 Comments

What You Need to Know About Life Expectancy Estimates

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 [...]

ITM TwentyFirst2019-08-27T14:02:50-05:00August 27th, 2019|General Interest, Life Expectancy Reports, Life Settlements|0 Comments

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

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 [...]

ITM TwentyFirst2019-08-13T10:18:42-05:00August 13th, 2019|General Interest, Life Insurance Investments, Policy Management, TOLI Administration|1 Comment

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

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 [...]

ITM TwentyFirst2019-07-24T09:56:00-05:00July 24th, 2019|Equity Index Universal Life, Policy Management, TOLI Administration|1 Comment

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

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 [...]

ITM TwentyFirst2019-07-09T10:39:25-05:00July 9th, 2019|Equity Index Universal Life, Policy Management, TOLI Administration|0 Comments