Fiduciary Responsibility & ILIT(s)
“A trustee who is charged with responsibility for a life insurance policy must manage that policy just as it would any other trust investment”
-American College of Trust and Estate Council
“Developing trust laws poses new duties upon trustees of trusts holding life insurance policies”
-Banking Law Journal
RDU & A Breakthrough View on Policy Review
Fiduciary Responsibility & ILIT(s)
“A study finds that 85% of trust-owned life insurance policies could be restructured to provide more value”
-Lawyers Weekly
“In a recent survey, more than 80% of trustees report they have neither procedures in place for life policy review nor an exit strategy for under-performing policies”
-Lawyers Weekly
RDU & A Breakthrough View on Policy Review
Uniform Prudent Investors Act (UPIA)
A life insurance policy is now viewed as a fully evolved property.
The trustee of a life insurance policy trust has a “Fiduciary Responsibility” to monitor the performance of a life insurance policy as a separate asset class.
It is the fiduciary duty of an ILIT trustee to supervise the trust activities and trust assets used to achieve trust purposes…. or risk being sued by trust beneficiaries.
RDU & A Breakthrough View on Policy Review
Trustee “Fiduciary Responsibility” & Life Policy Monitoring “Due Diligence”
Policy performs as originally designed when purchased.
Life insurance company mergers, acquisitions, declines in financial rating/performance.
Improvement in the insured’s health and today’s more aggressive mortality pricing environment.
RDU & A Breakthrough View on Policy Review
“Always do the good and right thing
…and the client always comes first.”
RISK DIFFERENTIATION
UNDERWRITING (RDU)
Policy Review with RDU
The Policy Review Landscape
Why now?
The power of risk assessment strength today
The marketing power of underwriting talent…
And the emergence of risk differentiation underwriting
The RDU Challenge
The unique qualities of the “individual” risk
The embedded idiosyncrasies of the clinical impairment
RDU & A Breakthrough View on Policy Review
The Importance of RDU
The Point-of-Sale Differentiator
Going “beyond the APS”…
RDU & A Breakthrough View on Policy Review
The RDU Advantage
Preconceived levels of comfort in the Home Office
The Underwriter and Medical Director
RDU & A Breakthrough View on Policy Review