Business Continuity – Unique Asset Management Reality Check

Millions of businesses worldwide have drafted or purchased business continuity plans, some have even practiced or simulated implementation of said plans, but few ever dreamed a worldwide pandemic would force these plans into action.  The rapid spread of the Covid-19 virus has impacted all of humanity, including thousands of businesses which include fiduciary services. For those who serve as a fiduciary or provide fiduciary support [...]

How Whole Life Dividends Are Calculated

Dividends are a return of premium when carrier results exceed a very conservative projection for investments, income, and expenses.  Dividends are paid annually on participating whole life insurance and determined at the discretion of the board of directors.  They are paid in addition to the guaranteed cash values in the policy, but the dividends themselves are not guaranteed and will fluctuate. Over the last twenty [...]

Best Interest Standards for Life Insurance Would Be a TOLI Trustee’s Best Friend

As a TOLI trustee, you have a fiduciary responsibility to ensure that every transaction - either a new policy sale or replacement is not only suitable for your client, but also in your client’s best interest.

Informing Grantors About Their Policy Makes Good Business Sense

An online survey about life insurance found that 33% of life insurance policy owners do not understand how their policy works. (1) I suspect that this number is probably low. Perhaps the other 67% think they know how it works, but I imagine they could get a refresher lesson. Even if a policy owner does understand how it works, do they understand how a decade [...]

2021-04-23T16:26:36-05:00April 23rd, 2021|General Interest, Policy Management|0 Comments

Trustee Alert: Don’t Be a Casualty of the Life Insurance Illustration War

In the 1980s when current assumption universal life (CAUL) hit the market, sales illustrations were created showing cash value returns of 10% and more every year – for a product that was invested in fixed instruments.  When equity markets soared and variable universal life (VUL) became the rage, many sales illustrations projected 12% returns – again, every year. Life insurance illustrations are at best a [...]

COVID-19 Update: Vaccines May Have Protected Life Settlement Lives in January

Executive Summary:                              The 3rd wave of the pandemic was the most widespread and deadly.  Through 2020, we did not find evidence of protection on Life Settlement lives from COVID.  However, in January 2021, at the peak of the 3rd wave, we saw the first signs that vaccines may be reducing excess mortality in Life Settlements.  Many Life Settlement lives are in the highest [...]

TOLI Trustee Alert: The Taxation of a Life Settlement Policy Sale

In our last two blogs, we discussed when and how to sell a life insurance policy.  In this blog entry, we want to talk about the taxation of a life insurance policy sale for the seller. The death benefit of a life insurance held in trust is received free of both estate and income taxes, however, if a TOLI life insurance policy is sold, [...]

TOLI Trustee Alert: Life Settlements – How to Sell a Policy

In our last blog, we tackled the question of when to sell a life insurance policy.  With past and potential future changes in the estate tax laws and the aging of the population in the typical TOLI portfolio, life settlements will become more prominent in the coming years. The TOLI trustee must become aware of the sales process, so we wanted to provide a [...]

TOLI Trustee Alert: Life Settlements – When Should You Sell a TOLI Policy?

It is estimated that over 100 billion dollars in life insurance benefits are surrendered each year by older aged citizens in the US. (1)  Unfortunately, the typical senior probably does not understand the life settlement market and the opportunity to maximize the value of an asset that many let lapse valueless after a lifetime of premium payments. Today’s TOLI trustee needs to be aware.  With [...]

2021-02-26T17:21:13-06:00February 26th, 2021|General Interest, Life Settlements|0 Comments

Choosing the Best Permanent Life Insurance Policy

Because we have managed life insurance for over a decade our clients will sometimes inquire about the best permanent life insurance policy to buy.  Our answer – always – is there is no single best policy.  The market usually has a “latest and greatest” policy and today it is equity index universal life (EIUL) which captured 64 percent of all universal life premium in a [...]

2021-02-19T14:53:42-06:00February 19th, 2021|General Interest, Whole Life|1 Comment
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