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 [...]

Newspaper Headlines Highlight Changes in Life Insurance (and TOLI) Business

On October 30th 2018, Voya Financial, a company we wrote about because of a lawsuit filed against it for cost of insurance increases that occurred on universal life policies sold in the past under the Security Life of Denver banner, announced in its third-quarter earnings call it would be ceasing all life insurance sales as of the end of the year. The company, which was [...]

Why the Cost of Insurance Increases? Some Possible Reasons

In the past few years, we have posted many entries dealing with the cost of insurance (COI) increases we have seen in Current Assumption Universal life (CAUL) policies. Almost three years ago, we were among the first to begin ringing the bell on this issue (see: If The Cost Of Insurance Goes This High, You Are Guaranteed To Have Some Angry Clients.) We have been asked [...]

Life Insurance Underwriting Classifications

In my last entry, Underwriting Life Insurance….What Every Trustee Should Know, I wrote about the steps that should be taken to ensure the best pricing when purchasing a life insurance policy. The difference in underwriting offers can play a large role in the success of the ILIT you are managing.   After all, keeping a policy in force over the lifetime of the Insured is much harder [...]

Underwriting Life Insurance….What Every Trustee Should Know

Recently, the Guinness Book of World Records announced the purchase of the world’s most valuable life insurance policy, a $201 million dollar policy. The previous record according to Guinness (although I have heard tale of cases that surpass both of these) was a $100 million dollar policy on David Geffen, a  founder of DreamWorks Studios, who got his start working with up and coming California rock [...]