LIFE INSURANCE POLICY REVIEW - Maximizing Policy Performance

A study of a large portfolio of TOLI [Trust Owned Life Insurance] policies held by a cross-section of bank trustees indicated a 75% chance that the death proceeds payable to a trust, for the benefit of its beneficiaries, could be increased by 40% or more with no increase in planned funding. Or, alternatively, funding could be reduced 40% or more with no decrease in death benefits payable to the trust.
American Banker - February 3, 1998; Page 17; Volume 163; Number 22

Research results on trust owned policies apply equally well to large life insurance policies which are not trust owned -- especially for policies more than 10 years old. This is true whether the policy owners are high net worth individuals, corporations, or non-profit organizations. Policy owners, beneficiaries, and their legal and financial advisors do not usually have the time and expertise necessary for efficient and effective policy management. Even institutional trustees rarely have the resources to ensure that policy coverage remains suitable.

Outsource Insurance Services, Inc. provides unsurpassed expertise and independent, objective advice to ensure that life insurance coverage continues to meet the original and evolving goals of policy owners. Our turnkey policy management and review system provides our clients with comprehensive customer service to protect one of their most essential assets.

Why can policy performance be improved?

• Newer policies offer more favorable premium rates and better policy guarantees, even for older individuals, than were available even as recently as 10 years ago.
• The insurance industry now operates at greatly improved efficiency. This translates into lower administrative costs and lower premiums on policies.
• Improved population health has resulted in better mortality rates and lower premiums
• Newer insurance policies have benefited from great innovation in policy design as well as more comprehensive and flexible policy features.