Informing Grantors About Their Policy Makes Good Business Sense

Updated 2/19/2020 Originally posted 12/11/2018 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 [...]

2020-02-19T16:04:48-06:00February 19th, 2020|General Interest, Policy Management|0 Comments

Minnesota Life to Raise Cost of Insurance on All Adjustable Life Policies

At ITM TwentyFirst, it is our goal to keep our clients informed of industry wide news that may affect how life insurance assets are managed. This week we became aware of cost of insurance (COI) rate increases for blocks of policies for Minnesota Life Insurance Company. The increases will affect all policies that have the word “adjustable” in the product name including Variable Adjustable [...]

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

Updated 2/5/2020, Originally posted 11/29/18 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 [...]

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

Updated 1/22/2020 Originally posted 10/19/2018 In our last blog, we tackled the question of when to sell a life insurance policy.  With the 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, and the TOLI trustee must become aware of the sales process, so we wanted to [...]

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

Updated 1/16/2020, originally posted 10/12/2018 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 [...]

2020-01-16T15:27:57-06:00January 16th, 2020|General Interest, Life Settlements|0 Comments

Choosing the Best Permanent Life Insurance Policy

Updated 1/7/2020, Originally posted 10/05/2018 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 [...]

2020-01-07T14:33:05-06:00January 7th, 2020|General Interest, Whole Life|1 Comment

Remediation, the Weak Link for Trustees – The TOLI Handbook: Chapter 16

Updated 11/13/19 Originally posted 8/8/18 A TOLI trustee we work with received a request from a grantor tired of gifting to pay premiums on his portfolio of whole life policies. His agent suggested that the three policies be replaced with one policy with a reduced death benefit. The existing portfolio totaled $5.7 million of coverage.  The agent proposed transferring the $2.1 million of cash value [...]

The Life Insurance Trust Company Solves Major Problems for Veteran Life Insurance Agents and Advisors

Updated 10/29/19 Originally posted 6/4/18 Four years ago, it was reported that the average age of a financial advisor in America was 51, with 43% over the age of 55 and many heading towards retirement (1). One year later, an industry publication noted that the average age of a US life insurance agent was even higher — 59 (2). Many veteran life insurance agents have [...]

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 [...]

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 [...]