Unfortunately, many wealth management professionals fail to view the underlying asset inside the trust—the life insurance policy itself—the same way they would consider other assets (e.g., stocks, bonds and real estate) and rarely re-examine the life insurance policy for its current value in the marketplace. Perhaps this is because they assume life insurance is just a stagnant holding with a pre-determined cost of maintenance and an eventual payout to the trust when the insured person dies.But this isn’t the case.
Source: Re-examining Your Client’s Trust-Owned Life Insurance Policy
