Every TOLI Trustee Should Know the Answers to These Questions

Answer: Because death benefit guarantees can be compromised in a GUL policy if the premium is not paid in full and on time, the premium should be sent. See chapter 8, Guaranteed Universal life – A Closer Look.

Answer: Allowing the conversion option on a term policy to lapse without prior review is a common mistake made by trustees and advisors. See chapter 4, An Introduction to Life Insurance.

Answer: Dividends have generally dropped over the last 2 decades and policy performance has suffered, well below what was projected in most sales illustrations. See Chapter 5, Whole Life Insurance – A Closer Look.

Answer: There are several reasons for the cost of insurance (COI) increases we have experienced, chief among them a decade of low interest rates. See Chapter 11, Why Did The Cost of Insurance Increase in My Policy?

Answer: Any time a policy is going to be surrendered or allowed to lapse, the sale of the policy in the secondary market should be reviewed and considered. See Chapter 14, Understanding Life Settlements.

Answer: The process is more important. As trustee you cannot always control the outcome, but you can control the process. See Chapter 17 – Closing Thoughts.

The TOLI Handbook was developed to provide trust owned life insurance (TOLI) trustees and all professionals dealing with life insurance, especially fiduciaries, the information they need to successfully manage this complex asset.

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