Managing Variable Life Insurance and Variable Annuity Contracts
Resource Insurance Consultants (RIC) serves as a Registered Investment Advisor CRD #135472. As such RIC can be retained to actively manage the investment component of variable life insurance and variable annuity contracts.
Although most companies employ investment analysts to manage client portfolios, variable life and annuity policies held in trust are difficult to review cost effectively. Additionally, it is challenging to determine whether the allocations are appropriate given the unique performance characteristics of the life insurance contract. Providing investment management services for these asset classes allows total contract oversight to fiduciaries, which now encompasses all aspects of life insurance and annuity management.
RIC provides limited investment management tools for variable contract managers and trustees in our standard course of services as a risk manager. These services included the current sub-account asset allocations of individual variable life insurance contracts.
Investment Advisory Service Components
- Investment Review: Review the investment management objectives, criteria and asset allocation modeling adopted by the trustee. This provides appropriate consideration for possible reallocation of the sub-accounts.
- Contract Review: This component reviews the existing contract to determine its as-sold projected performance, its current level of funding (under funded, adequately funded or over funded), attained age and life expectancy of the insured/s and identifies current sub-account holdings and their ROR's. This data is collected from RIC's Baseline Review that is included in every INVESTRACKTM report.
- Identify Options: Identify investment options available through the carrier, the investment objective of the different funds available and the historical performance of those funds.
- Reallocate Capital: We determine and implement a suitable sub-account allocation based upon the findings of the above components. This reallocation meets Trustee guidelines and the funding requirements of the existing contract within appropriate risk considerations.
- Confirmation: We provide documented confirmation that the carrier implemented our reallocation request and provide to the Trustee an investment report detailing our assessment, our actions and our opinion as to the investment health of the policy.
RIC will deliver our completed reports electronically in the clients hosted file room on our website, as we do with all of our other reviews. This service will be performed on an annual basis for the trustee. RIC also requires annual risk management oversight (Baseline/Renewal Review) on all policies under investment advisory management. Client may maintain investment authority or delegate investment authorization to RIC.
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