IS IT TIME TO REDUCE THE RISK AND COST OF ADMINISTERING ILITS?
Upgrading to tolimonitor managed limits liability through ITM’s risk mitigation processes and reduces your ILIT-related workload by approximately 90%
WHY UPGRADE TO 
MANAGED?
With your current tolimonitor standard solution, our annual poliy review alerts you to issues.
When you upgrade to the tolimonitor managed solution, we fix the issues before they become costly mistakes.
You remain trustee. We do the hard work.
STANDARD
annual policy review with access to our ILIT administration software-
Access to All Policy and Trust Data
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Annual Life Insurance Policy Review
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Unlimited Document Storage & Retrevial on ITM Software
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Access to Live & Dynamic Portfolio Reports
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Basic Pre-Acceptance Policy Review
MANAGED
ITM handles all ILIT administration, policy management and remediation-
Access to All Policy and Trust Data
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Annual Life Insurance Policy Review
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Unlimited Document Storage & Retrevial on ITM Software
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Inbound Mail Processing for Trust Documents
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Outgoing Correspondence Tracked & Stored
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Access to Live & Dynamic Portfolio Reports
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Monthly Management Reports
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Generate & Sent Gift Notices
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Deposit of Gifts
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Generate & Send Crummey Notices
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Premium & Trustee Fee Payment Monitoring
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Annual Trust Account Report Sent to Grantors & Advisors
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Basic Pre-Acceptance Policy Review
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Comprehensive Pre-Acceptance Review
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Track Term Conversions & Premium Increases
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Track Expiration of Riders, APOs, Disability Waivers, etc.
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Identify and Review Policy Sustainability Issues
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In-Depth Policy Analysis
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Drafting of Correspondence to Advisors, Grantors & Beneficiaries
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Creation & Distribution of Disclosure Statements, Forms, Notices, etc.
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Policy Replacement Analysis
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Trust/Policy Termination Review & Disclosure
Our team of life insurance experts manages the complexities of Life Insurance Trusts for banks and trust companies. With our team servicing your trusts, your team can focus on clients’ other assets while we ensure that trusts are in good standing.
tolimonitor managed is the only turn-key solution for irrevocable life insurance trust administration for trustees and includes the following services:
Trust Administration
- Notify grantors when premiums are due
- Handle Crummey notices to beneficiaries
Policy Reviews
- Annual policy reviews to identify performance issues
- Analyze new or replacement policies for risk prior to acceptance into trust
Policy Management
- Ensure that premiums are paid
- Ensure that policies are in good standing
Trust Management Reporting
- Generate comprehensive reports on all trust activity
- Simplify internal and regulatory audits
Policy Remediation
- Provide solutions for troubled policies, changes in premiums and riders
- Appropriate documentation to mitigate liability
Branded Client Communication
- Customize all grantor and beneficiary communication with your branding
TOLI management is becoming more difficult every year.
are you prepared to protect your clients and your team from these growing risks?
The latest trust-owned life insurance statistics* reveal a significant shift in policy performance since 2022—highlighting an increasing need for proactive management and expert oversight.
- 48.3% of all policies are now projected to lapse prior to maturity (up from 27.7% in 2022)
- 34.5% of policies have a high risk rating
- 32.8% will lapse before life expectancy (a sharp rise from 11%)
- 49.1% of no-lapse guarantee provisions have been compromised (previously 30%)
- Loan issues have surged by 60%, with 13.9% of whole life policies now at risk of triggering a taxable event (up from 7%)
*Based on internal analysis of ITM’s portfolio of over 9,500 trusts
A REAL EXAMPLE OF HOW MANAGED SAVED A TRUST $500,000
BACKGROUND:
When managing Trust-Owned Life Insurance (TOLI) policies, trustees sometimes need to pursue remediation to address policy issues. These issues can arise from a range of factors, such as a Cost of Insurance (COI) increase, a grantor deciding to stop funding a policy, or the need to replace a policy with a more efficient option. Occasionally, errors made by a trustee also require corrective action.
With nearly 47% of TOLI policies needing remediation each year, it’s essential to know how and when to act. This case study offers insight into a real-world example of policy remediation and how ITM helped achieve an outcome that benefited both the trustee and the insured parties.
The trust in question owned a survivorship guaranteed universal life insurance policy issued in 2004. The policy had a death benefit of $10 million, with a short-pay premium designed. For the first ten years, the annual premium was $100,000. After year 10, no additional premiums were planned. After the initial policy review was completed by ITM, the remediation team reached out to the trustee to discuss the situation.
THE CHALLENGE:
A problem arose when the insurance carrier continued charging $100,000 in premiums annually, even after the last premium was paid in year ten. This resulted in the insured paying excess premiums in policy years 11 through 14, totaling $400,000 above what was originally planned and owed.
The insureds had been told that the total premiums would amount to approximately $1,000,000 over the life of the policy. However, by 2018, they had paid $1,400,000 due to the carrier continuing to send premium notices for the $100,000 annual premium. The discrepancy was due to the carrier’s failure to update the billed premium per the policy contract.
The trustee, with ITM’s assistance, demanded remediation from the insurance carrier to recover the excess payments.
THE RESULTS:
With ITM’s assistance, the trustee successfully secured a $400,000 remediation for the insureds. ITM’s initial policy review was critical in identifying the discrepancy, uncovering the carrier’s failure to adhere to the agreed premium schedule. The remediation team’s expertise ensured a clear strategy was developed to address the overpayment, guiding the trustee through the recovery process.
To accommodate the return of excess premiums paid, the carrier adjusted how the policy’s values were managed. The adjustments ensured that the death benefit was effectively increased by the same amount as the withdrawal, preserving the overall value of the policy without reducing the total death benefit.
Why Partner with ITM
Administered
Reduces the Cost and risk of Administering Trusts and Managing Policies.
Mitigate Risk
On average, 30% of policies will need remediation each year. Our team successfully remediates cases, satisfying grantors and beneficiaries while avoiding potential liability.
Meet Fiduciary Duties
Our team of experts will work to maximize the value of every policy and trust, ensuring that you meet your fiduciary duty.
Optimize Your Time
Redeploy internal resources to more profitable areas of your organization and allow our team of life insurance experts service your life insurance trusts.
To learn more about how upgrading to tolimonitor managed can help you mitigate your ILIT liability, request a consultation today.
READY TO ELMINATE THE COSTS AND RISKS OF ADMINISTERING ILITS?
Life Insurance Trust Company, our affiliate company, provides successor trustee services for banks and trust companies who no longer want to serve as trustee for some or all of their Life Insurance Trusts. LITCO focuses solely on ILITs and partners with financial advisors to provide greater results for grantors and beneficiaries.
