Today’s life insurance policies are sophisticated financial instruments. Gone are the days when a policy is purchased and “put in a drawer” until a claim is filed.

The major forms of life insurance held in trust are single and joint life versions of Whole Life, Universal Life, and Variable Universal Life.

These policies need to be periodically reviewed not only for the solvency of the underlying carrier, but for the policy’s sufficiency to meet Grantor objectives.

Life insurance is a complex financial asset with policy components (premium outlay, cash value account and death benefit) that can be flexibly managed over the trust’s time horizon. However, life insurance lacks common reporting standards and terminology.

• Different product types offer different contractual guarantees
• Sales illustrations can be very confusing because of their overwhelming data and sales orientation

As a result, not only are they confusing, but they’re difficult for a consumer and trustee to appreciate the difference between a non-binding projection and a realistic expectation.

Ethical Edge Insurance Solutions (EEIS) offers trustees a process for life insurance policy evaluation that is actuarially certified. Based upon a trustee’s preferred, acceptable and unacceptable ‘outcome probability analysis’ criteria, EEIS provides the third-party policy evaluation trustees have long been seeking for informed policy acceptance and management decisions.