A Lapsing Life Insurance Policy CrisisA Lapsing Life Insurance Policy Crisis

In recent years, much has been written concerning escalation of the lapsing¹ life insurance policy crisis, illustration abuse, increased carrier litigation and continued sales agent promotion of questionable policy administration and risk management schemes for flexible premium non-guaranteed death benefit policies. Cautionary warnings with corrective action guidance have been directed to all policy owners mindful that illustration abuse adversely impacts insureds of all ages and life insurance programs of all types. Special attention has been given to senior insureds as well as to trustees, both skilled and unskilled, of policies owned in irrevocable life insurance trusts (ILITs), to seek credible, dispute defensible policy risk managem...