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Archive for April, 2014

Review of Randy Whitelaw’s March 2014 Journal of FSP article

April 16th, 2014 No comments

Randy has written about the duties/responsibilities of trustees regarding the UPIA and, given his profession and time in the market, he should know. I always enjoy reading articles like this and he, as usual, has done a great job. However, while not meaning to take anything away from him, I often find something to expand on. Here are my thoughts.

Randy correctly states that the policies primarily at risk are the UL & VUL policies from 1980 to 2000 but I am always fearful that when non-experts read something like that, they automatically dismiss possible problems with other types of policies or policies from other eras. To assume policies issued after 2000 are fundamentally safe would be a big mistake. While Guaranteed UL policies are fantastic when understood, properly utilized and managed, many GUL policies (which are predominantly post 2000) are in trouble and will not perform as expected. Also, the recent surge of Indexed UL policies is certain to keep my consulting operation humming for decades to come. The misunderstanding and abuse I too often see with them is unconscionable. Read more…

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