TRIP is a compelling new offering that addresses the needs of nontraditional distribution channels such as stock brokers, financial planners, and financial institutions.
Designed from the ground up to mesh with the business and operational characteristics of such channels, TRIP may well be the first life product to be a truly viable component in the distributor's portfolio of offerings.
The complexity of the variable life design, with its myriad of charges, especially the COI charge, has been one of the major impediments to the major expansion of the variable life business in investment oriented distribution channels. The other impediment has been the complexity of the fulfillment process. The rather daunting nature of these two factors has kept many producers away from the life product, although the producers recognize the superior benefit structure and the tax advantages inherent in the life offering.
Both variable annuities and mutual funds have rather simple structures, often determined solely by a percentage charge on assets. Mutual funds, however, will be taxed whenever the owner moves investments from one fund to another. A variable annuity is also tax inefficient, with a combined estate and income tax bite well over 75% of the underlying assets. Both are also inefficient as retirement income vehicles.
TRIP is Actuarial Strategies' next generation VUL for these markets. Its simple design, combined with its investment focus, and vastly simplified underwriting process, may well revolutionize the sale of life insurance within these channels.
A Program and Process that Truly Meets the Needs of Account Representatives
