Why do fiduciaries have a responsibility to review life insurance policies under their care?

Why do fiduciaries have a responsibility to review life insurance policies under their care?

This video discusses the importance of life insurance trustees actively managing the policies under their care in accordance with the Uniform Prudent Investor Act that stipulates that life insurance policies should be treated and managed with the same care as any other financial asset. Failure to do so leaves the trustee liable for negligence if the policy performs poorly under the trust’s management without proper action being taken.

Important questions that the trustee should be considering:

  1. Is the policyowner paying too much or too little for the policy?
  2. How does the financial performance of this product compare to other assets and products on the marketplace?
  3. What actions should be taken on the policy?

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