FPN Direct: Life Policy Review and Trust Remediation

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There is Over $1 Trillion in ILIT’s, and 40% are “At Risk” or “No Longer Competitive”

FPNDirect identifies those policies, and then provides services to update, modify or replace them

Studies show that 50% of Trust Owned Life Insurance is inadequately funded for the life of the grantor and 75% of policies over five years old could have the death benefit increased by 40% while maintaining the same premium.

FPNDirect in partnership with Davis Life & Annuity provide a 4-step process for reviewing existing life polices and providing the trustee an accurate and effecient means to protect the interests of their clients as well as limiting their own liability. There is a HUGE market for these services and tapping into this market often leads to future business and referrals by Banks, Trust companies, Law firms, CPA’s, Accountants and Individual Trustees.

How the Program Works:

Step 1: Policy Review

The first step in the process is to conduct a LifeTrack review provided by the industry-leading insurance policy analysis firm, Resource Insurance Consultants (RIC)

This Review Provides:

  • Funding Adequacy Analysis
  • Policy Competitive Analysis
  • Insurance Carrier Risk
  • Policy Loan Risk
  • Life Expectations
  • Survival Probabilities
  • Policy Performance Observations

  • This actuarially certified review performed by RIC’s highly credentialed staff, has been delivered over 100,000 times for trustees, including six of the top ten US banks.

    Using the information from the LifeTrack review and current in-force policy data provided by the insurance company, we perform a confidential Market Evaluation. This “real-time” information provides a realistic snapshot from an independent source utilizing redacted policy information.

    Step 2: Policy Remediation

    If no issues are identified and the policy cannot be materially improved, we schedule policy reviews every one, two or three years, based upon RIC’s risk assessment, as part of the ongoing policy management.

    If the LifeTrack review or Market Evaluation identifies issues with the policy or potential to significantly improve trust suitability, we assign a licensed FPN member to contact the grantor to review the reports and discuss alternative solutions to improve trust asset performance.

    In the event that policy changes are proposed, we will provide an independent Replacement Analysis from RIC to document that the proposal is in the best interests of the trust. This analysis will be completed, in accordance with your fiduciary duty, prior to binding any new coverage.

    Step 3: Policy Management

    The trustee can track all activity through RIC’s SolutionTrack including adding or removing policies from the system, client communications, and numerous other trustee related duties.

    Step 4: Cost Subsidization

    The FPN Direct process proportionately shifts the costs relaed to this four-step process from the tustee to the insurance distribution channel, which stands to benefit when some fraction of the reviews result in new business

    DON’T MISS THIS OPPORTUNITY! Call 800.747.5612

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    ABOUT RIC: RIC and its subsidiaries provide complete risk management solutions and unparalleled service for professional trustees/fiduciaries. As an independent risk manager and registered investment advisor, RIC provides consultation, administration and management of trust owned life insurance, annuities, variable invested assets, and other hard-to-value assets.