Life Insurance Policy Review

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Advanced Life Insurance Portfolio Review for Professional Advisors/Trustees/Paradigm Strategic Insurance Clients

A recent study in the Journal of Financial Service Professionals indicates that anywhere from 70% to 95% of Trust Owned Life Insurance (TOLI) had no servicing agent1.

A survey in Trusts and Estates found that 83.5% of professional trustees had no guidelines or procedures for handling TOLI and 95.3% had no investment policy statement covering TOLI.  Additionally, only 28.8% of nonprofessional trustees had reviewed TOLI within the last five years2.

Thus, the problem is that the trustees have neither the life insurance skills to manage TOLI, nor the procedures in place to do so. And 71% of nonprofessional trustees have not reviewed their policies within the last 5 years. Almost all of this insurance can and should be restructured and improved3.

After 39 years of working with high net worth individuals, familes and business owners, we have artfully honed the portfolio review process and provide detailed analytics for professional advisors, trustees and clients following the Uniform Prudent Investors Act (UPIA) guidelines of annual and thorough policy reviews that trustees must follow in their role of fiduciary. The end result is clear, objective understanding of the life insurance portfolio reviewed.

1 “Trust-Owned Life Insurance: Issues Trustees Face; Decisions Trustees Need to Make,” July 2005, page 39

2  3 “The Problem With Trusts Owning Life Insurance,” May 2003, page 62