Life Policy Audits and Risk Differentiation Underwriting (RDU)

Risks and Opportunities

Fiduciary Responsibility & ILIT(s)

“A trustee who is charged with responsibility for a life insurance policy must manage that policy just as it would any other trust investment”

-American College of Trust and Estate Council

“Developing trust laws poses new duties upon trustees of trusts holding life insurance policies”

-Banking Law Journal

RDU & A Breakthrough View on Policy Review

Fiduciary Responsibility & ILIT(s)

“A study finds that 85% of trust-owned life insurance policies could be restructured to provide more value”

-Lawyers Weekly

“In a recent survey, more than 80% of trustees report they have neither procedures in place for life policy review nor an exit strategy for under-performing policies”

-Lawyers Weekly

RDU & A Breakthrough View on Policy Review

Uniform Prudent Investors Act (UPIA)

A life insurance policy is now viewed as a fully evolved property.

The trustee of a life insurance policy trust has a “Fiduciary Responsibility” to monitor the performance of a life insurance policy as a separate asset class.

It is the fiduciary duty of an ILIT trustee to supervise the trust activities and trust assets used to achieve trust purposes…. or risk being sued by trust beneficiaries.

RDU & A Breakthrough View on Policy Review

Trustee “Fiduciary Responsibility” & Life Policy Monitoring “Due Diligence”

Policy performs as originally designed when purchased.

Life insurance company mergers, acquisitions, declines in financial rating/performance.

Improvement in the insured’s health and today’s more aggressive mortality pricing environment.

RDU & A Breakthrough View on Policy Review

“Always do the good and right thing

…and the client always comes first.”

RISK DIFFERENTIATION

UNDERWRITING (RDU)

Policy Review with RDU

The Policy Review Landscape

Why now?

The power of risk assessment strength today

The marketing power of underwriting talent…

And the emergence of risk differentiation underwriting

The RDU Rules of Recognition (R3)

The RDU Challenge

The unique qualities of the “individual” risk

The embedded idiosyncrasies of the clinical impairment

RDU & A Breakthrough View on Policy Review

How We Do RDU

RDU In Action

The Importance of RDU

The Point-of-Sale Differentiator

Going “beyond the APS”…

RDU & A Breakthrough View on Policy Review

The RDU Advantage

Preconceived levels of comfort in the Home Office

The Underwriter and Medical Director

RDU & A Breakthrough View on Policy Review

RDU and The Customer

Impairment intimacy

The Advisor/Client relationship

People. Passion. Promise.

The RDU Win

RDU & A Breakthrough View on Policy Review

The Client

The Carrier

The Advisor

Thank You