Michael’s Blog
5 Steps for Wealth Advisors Acting as a Life Insurance Trustee
If you are a Financial Advisor, Attorney, CPA, or other Professional who has taken on a life insurance trust for profit or accommodation, read on…. Most poeple do not know it, but non-corporate trustees like you oversee almost 80% of trust-owned life insurance. You...
Would you put unlimited cash into a fund that guaranteed a 4% return?
Back in 2018, I came across a Canadian universal life policy policy that paid at least a 4% guaranteed return on policy cash value. The kicker – in the US, you are limited by tax law as to how much can be put into a life insurance policy – in Canada that was not the...
TOLI Trustee Alert: Oops, the Life Insurance Policy Lapsed…What Next?
A Trustee's most common fear is that a ball drops, and a policy in their care lapses. Unintended lapses do occur, and when they do, knowing how to fix the problem is essential. In this post, I will provide some guidance. Policy lapse can occur when the premium is not...
What Is A Whole Life Dividend, And Why Have They Been Dropping?
Whole life insurance is considered the “most expensive” life insurance you can purchase – at least initially. The policy provides significant guarantees. If the premium is paid in full each year, the policy is guaranteed to endow (cash value equal to death benefit)...
What Low Interest Rates Mean For Life Insurance
An article in the Financial Times announced, “profoundly low interest rates are here to stay,” which should cause investors to “recalibrate” assumptions with their investments. (1) On July 31st the Federal Reserve lowered interest rates for the first time since the...
This May Be Why Your Client Fails To Move Ahead With Your Solution
There is nothing more frustrating, no matter what business you are in, then to spend hours with a client or prospect you feel you have “sold” on your idea and then not have them move ahead. After all, you know your solution is right. Why don’t they? I recently came...
TOLI Trustees: Don’t Throw That Life Insurance Policy Away!
The Tax Cuts and Jobs Act Of 2017 signed into law by President Trump drastically limited the number of estates affected by federal estate taxes through raising the federal estate tax exemption from $5.49 million to $11.18 million. With the higher exemption it has...
Feel Better About Those Books You Never Get Around To Reading
Are you like me? You can’t pass up the urge to buy a new book but never seem to find the time to read them all? Are unread books stacking up on your bedside table or office desk? Relax, there are those who believe your book buying is a “badge of honor.” (1) Why? The...
Is There One “Best” Life Insurance Policy?
Tip #11 There is no one best permanent life insurance policy, but there is the best policy for each particular situation or client. Too often, when your clients buy life insurance, they are sold a particular “hot” product. The life insurance industry has done a great...
One Of The Most Important Things For Family And Children
Sunday nights are special around here. My wife and I head over the causeway to visit her 93-year-old parents who live on the river. The best part of Sunday dinner is afterward – wine is left on the table, coffee is added, and the family stories come out. Growing up...
Want to Know Why Many Life Insurance Policies “Fail”?
Tip #18 Cash value investment projections at policy issues are often too optimistic. When Ronald Reagan took office in January of 1981, interest rates were sky high. The federal funds rate stood at 19.08%. The life insurance industry came up with a product to take...
How Trustees and Wealth Advisors Show Value to Their Clients
Tip #12 Even if a trustee is not part of the sales process there still is a duty to ensure the policy is suitable and matching the right policy to the client is essential to limiting policy management issues (and liability) down the road. There is a reason why I spend...
Even Older Insureds Could Benefit From a Policy Market Review
Tip #35 Your older clients should not shy away from a market review because of their age. They are often the ones with the least-efficient policies. Life insurance has evolved over the years. Older policies built on less-favorable mortality tables are often the...