TRUST ASSET CONSULTANTS | 1121 Olivette Executive Parkway, Ste 200 | St. Louis, MO| 63132
Trust Asset Consultants
Specialty Design, Underwriting and Restructure Life insurance usually represents a significant cash flow planning commitment for an investment and/or liquidity benefit value to be realized 10 to 50 years in the future.  Policy owners typically lack life insurance product and policy evaluation expertise. Further, most want to avoid a commission-motivated marketing scheme.     TAC serves as an intermediary for the policy owner. We employ a suitability assessment process to formulate Request for Proposal (RFP) guidance for use with client-selected life insurance sales agents.  This process summarizes the planning purpose, duration period and risk tolerance criteria and the insured’s medical history. Based upon this RFP, multiple carrier offers can be solicited and offers compared using credible evaluation.  We manage the screening process to assure carrier size/third-party ratings, product selection, policy design and policy management considerations meet the client’s suitability criteria. Special Considerations: Large Case Placement Diversification:  When a life insurance planning objective exceeds $3-$5 million, carrier, product and policy design diversification should be considered and additional emphasis given to the plan counseling and management functions.  Diversification requires special handling to ensure selection of sales agents with large case placement experience, coordinated underwriting among multiple carriers, evaluation of reasonable and appropriate costs, credible evaluation of premium adequacy and policy sustainability, and active program management. Subsequently, if planning objectives change, all these considerations warrant  reassessment to maximize existing asset values and committed cash flow.      Policy Restructure: When the planning time horizon (duration period) is 20 years or longer, planning objectives usually change.  Further, new life insurance products are periodically introduced that may be more efficient for a specific planning need and priced more favorable for the policy owner.  Restructure should be expected for ‘warranted’ reasons, not agent-driven ‘unwarranted’ reasons. In its counseling role, TAC can prepare a suitability analysis to serve as the basis for a ‘warranted’ restructure decision, coordinate a Request for Proposal process, and interact with the selected sales agent to expedite the application and underwriting process.