Media Coverage

TheInsuranceAdvisor.com continues to lead the discussion about Trust Owned Life Insurance (TOLI) MANAGEMENT on John Hancock Radio

It has been reported that more than $1 trillion in life insurance is held by irrevocable life insurance trusts, and that as much as 20% of this total is held institutionally in banks and trusts. Of the instituionally held portion, 80% of ILITs are NOT being managed. Combined with the large number of ILITs that are held by non-professional trustees (80% of the total), as much as 90%+ of ILITS are NOT being managed at all. The aggregate amount in TOLI is also increasing as life insurance plays a larger role in wealth transfer planning. As these policies are older and many are underperforming, a substantial opportunity exists to manage the TOLI holdings to get these ILITs back on track.

Barry D. Flagg appears on John Hancock Radio to discuss Trust Owned Life Insurance and how understanding the Uniform Prudent Investor Act (UPIA), along with the Prudent Process (monitor, investigate, & manage), can help trustees to better manage these TOLI holdings.

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TheInsuranceAdvisor.com talks about Life Insurance Sales Growth & the Uniform Prudent Investor Act (UPIA) on John Hancock Radio

The Uniform Prudent Investor Act (UPIA) is to private trusts (including life insurance trusts) what ERISA was to retirement plans and mutual funds. While mutual fund sales were ½ that of life insurance sales in 1974, mutual fund sales have increased 66-fold since ERISA, while life insurance sales have remained largely flat. At least 2 of the same 3 market forces are already in play that could lead to similar growth in life insurance sales as the industry adopts the portfolio management principals of UPIA.

With $3 Trillion in assets from which few know what they are being charged or what they are earning, life insurance is clearly the largest component of wealth that wealth managers have thus far left behind meaning many policy holdings are in desperate need of management. Larger than Hedge Funds, Separately-Managed Accounts and Exchange-Traded Funds combined, and almost 1/3rd of the size of the massive $10 Trillion Mutual Fund industry, life insurance portfolio management is the largest un-tapped wealth management opportunity the industry has seen in 3 decades.