Cox & Nici serves as the trustee or primary fiduciary on many irrevocable life insurance trusts ("ILIT"). We have become increasingly concerned about the life insurance policies held in these trusts. The performance of many policies has not kept pace with projections and client expectations.


In the past 13 years or so, there has been a quiet revolution in the life insurance industry. Changes in life insurance company ownership, ratings, internal expense charges, and constantly decreasing interest crediting rates in policies, can and have had potentially disastrous effects on existing life policies.

Ironically, during this same period of time, insurance companies have created new policies that are often superior to existing policies. This is, in part due to improvements in actuarial life expectancies, internal pricing, underwriting, and re-insurance practices. Many of the newer policies have guarantees that were previously not available. A new generation of life policies, with lifetime guarantees, can eliminate the major concern of many clients, that is, "If I continue to pay my premium can I be sure the policy will be there when it is needed?" Unfortunately, without such a guarantee, there is no such assurance.

There are many questions not related to the specific type of policiy(ies) that should periodically be addressed by a trustee/fiduciary or owner of a life insurance policy, that can effect the taxation of the desired benefits and even the inclusion of policy proceeds in one's estate. For example:

We would be happy to extend this service to other clients of Cox & Nici even if we do not serve in a fiduciary capacity on your existing ILIT. Just let us know if you want our assistance.