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Trust, but Verify

Jul 27, 2022 4:20:56 PM

Trust but verify. It’s a phrase that was drilled into my head as a kid.  

“Daddy, when I tell you I cut the grass, why do you always go outside and check the job I did? Why don’t you trust me?” 

“I trust you…I just want to verify for myself.”  

“Mommy, how come you check my homework every night?. I told you I did it. You don’t believe me?” 

“Of course I believe you…I just want to see it to be sure.” 

 Life is filled with these examples of trusting, but still verifying, and no example is more prevalent in the life insurance industry than the high-dollar death benefit policies that are a part of college endowments. 

Gifts given to these endowments by wealthy alumni typically have guarantees on them and are supposed to last for the duration of the donor’s life. But, as we all know by now, that doesn't really mean that they’re truly guaranteed like we think they are. This is why more and more college endowment funds are reaching out to myself and the team at Proformex about whether they can leverage our software to manage the life insurance policies that have been gifted to them by alumni. 

The answer is obviously YES. This is exactly what Proformex’s software was built for – making sure that policies are staying on track based on their stated goal at the time of issue. In these endowments cases, making sure the lapse age on these policies is lasting to well beyond the insureds life expectancy so the endowment can receive the tax-free death benefit gift when the time comes. 

So, what are you waiting for? Don’t sit back and continue the burdensome day-to-day management of these policies. We’ve all been burned in the past for implicitly trusting. Leverage the power of Proformex so you can verify instead 

Written by Max Posner

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