Take the TOLI Challenge: In a Permanent Life Insurance Policy, the Cost of the Policy is Equal to the Premium – Yes or No?

The answer is an emphatic NO. Some permanent life insurance policies, specifically guaranteed universal life (GUL) and Whole Life (WL), have required premiums, though WL out of pocket premiums can be reduced by dividends, paid-up addition cash values or policy loans. But the premium paid is not the actual cost of the policy and finding the underlying costs on the policies is a challenge. For [...]

Take the TOLI Challenge: Can You Answer This?

What steps should you take if a grantor says they want to surrender their policy? In the decade-plus that we have been managing life insurance for TOLI trustees, we have noticed that the weak link in their services usually is remediation. The inability to analyze policy options in changing situations is an area of future liability. Some trustees we have spoken with have surrendered policies [...]

Professional Designations: Training Your Staff Helps Your Team and Your Firm

Over the years, we at ITM TwentyFirst have been leaders in peer education. The TOLI Handbook, a free download available here as a PDF, provides industry peers with a single source guide for managing trust-owned life insurance (TOLI) trusts and policies. We have, over the years, provided hundreds of hours of professional CE for several professional designations. Our staff is encouraged and incentivized to seek [...]

Join ITM TwentyFirst for a Week-Long Education Course on Unique and Hard to Value Assets

We at ITM TwentyFirst have always been very proactive about continuing education. Just like many other industries, the unique and hard to value asset industry is always changing and filled with complexity. Our team members, and the company as a whole, participate in several continuing education efforts every year. This summer, we will be taking part in a week-long course focused on administering Hard [...]

Take the TOLI Challenge: Can you answer this?

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, we thought we would “chunk it down” with the TOLI Challenge—a series of questions designed to test the knowledge of the typical TOLI trustee. We will be publishing questions [...]

Ever Heard of a Life Insurance Carrier Giving $200,000+ in Premium Back? No? Now You Have

In the almost 15 years we have been managing life insurance policies, we have never encountered a situation where a life insurance carrier volunteered to give back money.  Oh, sure, you can surrender a policy and get money back, or take a loan or withdrawal on your policy to get some cash, but at a cost. Recently we received a letter from a carrier [...]

Upcoming Webinar June 24th: Why Now Is the Time to Consider Alternatives for Your Irrevocable Life Insurance Trusts (ILITs)

Why Now Is the Time to Consider Alternatives for Your Irrevocable Life Insurance Trusts (ILITs) Presenters: Leon Wessels, Life Insurance Trust Company, John Barkhurst, ITM TwentyFirst For most institutions in 2021, life insurance trusts are not core to their trust business. With the regulatory, reputational, and legal risks ever increasing, many corporate trustees are currently rethinking their ILIT services, contemplating other alternatives.  This webinar [...]

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 [...]

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
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