Trustees

Managing Competitive Rates for a Trust

FinancialProfs_TrusteesMany believe a life insurance policy will perform as it was sold to them or that the rates they are paying are still competitive. Unfortunately, that notion is false.

A recent study estimates that 92 percent of all trust-owned life insurance could be restructured or reissued providing an average economic benefit of 20 percent to the client either by lower premiums or increased death benefit. Worse though, 87 percent of universal life insurance policies will lapse or be surrendered, never paying a death benefit.

Under the Unified Prudent Investor Act, a trustee has a fiduciary obligation to manage and review the appropriateness of assets owned by a trust. This includes the assessment of life insurance policies. However, when Trusts and Estates magazine anonymously surveyed 1,000 professional trustees, 84 percent said they lacked the tools and procedures for managing these policies. Our comprehensive review system begins by reviewing the policy’s performance, lapse risk and carrier stability. We then compare the policy to what is available in the current market place to test competitiveness and see if improvements can be made.

Contact us to see how we can help mitigate your fiduciary risk and help your client enjoy a better economic benefit.

Concentric Insurance
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Our Office:

3636 Westown Parkway, Suite 250
West Des Moines, IA 50265
Phone: 515-225-4838
Fax: 515-224-6803