Upcoming Webinar May 27th: Minimizing Trustee Liability in a Changing Market

Minimizing Trustee Liability in a Changing Market Judith Pearson, Nomadx Solutions Risk management is always more challenging in a volatile environment, especially in a society that has grown more litigious.  Learn how to minimize your liability by taking a few simple steps. The trust world has become rich with opportunity. Learn how to navigate this complex market while dodging landmines of personal liability. Understand [...]

Upcoming Webinar May 13th: An Insider’s Guide to Life Insurance in a Challenging Environment

A decade-plus of historic low interest rates and a financial crisis unlike any we have seen before has negatively impacted life insurance.  Do you know why and what you can do to deal with it?  You will if you take part in this fast-paced webinar.  By attending, you will: Learn which policies will be most affected and how to manage them effectively going forward. [...]

Take the TOLI Challenge: Can you answer this?

Updated 4/9/2020, Originally Posted 2/19/2019 What is most important when determining the liability of a trustee’s actions? Over the years, we have noticed that the knowledge of TOLI trustees varies from trust company to trust company. After publishing the TOLI Handbook in 2018, we thought we would “chunk it down” with the TOLI Challenge—a series of questions designed to test the knowledge of the typical [...]

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 [...]

TOLI Trustee Alert: More of Your Clients Will Be Living to 100 and That Could Be a Problem

Updated 3/12/2020, Originally posted 2/5/19 A little over five years ago we wrote about a little-known problem for trust-owned life insurance (TOLI) trustees - clients living to age 100 - the maturity age for many older life insurance policies. The problem is that many policies in their portfolio will not pay out a full death benefit at maturity and the chances of insureds living to [...]

How Whole Life Dividends Are Calculated

Updated 3/5/2020, Originally posted 1/2019 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 [...]

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 [...]