Policy not performing as expected . No provision to resign or transfer policy out. If unpaid and lapses, could be tax consequences for loans taken against policy. Insurance company not doing well or worse, failing. Required to provide in-force illustrations each year at request of owner of policy.
Places trustee right in the middle of a difficult situation.
Disclosure problem with mailing of required withdrawal notices to children beneficiaries. Difficult to manage and easy to miss premium payment. One client even assigned an AAA group policy. Premiums can be level for a stated term and may be renewable or non-renewable at end, if renewable, no underwriting required to renew. May have feature of converting to whole life at end of term.