Guaranteed universal life takes the market risk out of life insurance, but it adds additional risks that sit squarely with the TOLI trustee. For all GUL policies you take in, you should understand all of the policy nuances
The acting Superintendent of the New York State Department of Financial Services, reacting to almost "1,400" complaints from in-state consumers, recently issued an alert about universal life policies that provided insight for any trustee managing universal life policies. The alert focused on flexible premium universal life policies without secondary death benefit guarantees. As pointed out in the publication, universal life is meant to be a [...]
Life insurance has been a challenging financial product to manage in the last year or so and we have written often about the issues that surround this asset. But we also believe that this is a powerful financial tool. In our last blog entry we wrote about its use to mitigate the negative effect of a tax law change that may occur in 2017. At [...]
In the past year we have witnessed a number of transactions in the life insurance industry. One of the largest was the sale last year of Hartford Financial Services Group, Inc.’s individual life insurance business to Prudential Life. That deal was a win/win/win. The transaction allowed Hartford to free up capital it felt could be better used in other areas. Prudential expanded its business line in a business it [...]
Guaranteed Universal Life (GTD UL) policies have been a mainstay in the TOLI world, providing lifetime “guaranteed” coverage for a very cost efficient premium. As our earlier Blog (Happy New Year……The Cost of (Some) Life Insurance Just Went Up) pointed out, GTD UL’s do not provide significant cash value, but in the TOLI world where low cost death benefit is important, they fit the bill. [...]
In the last decade, one of the most popular life insurance products has been the no-lapse guarantee universal life policy (note: for a white paper that explains the different types of life insurance go to http://www.youritm.com/Sites/17/docs/WP_MikeBrohawn.pdf). With its low cost, guaranteed death benefit coverage over the lifetime of the grantor/insured, this product was tailor made for the TOLI market where the focus is usually on [...]
