The use of an indemnity Long Term Care (LTC) rider is crucial to keep the life insurance death benefit estate tax free. That’s because any rider benefits will be paid only to the Irrevocable Life Insurance Trust (ILIT) as policy owner, and NOT used to pay extended care costs directly to the extended care provider. Since LTC benefit claims are paid only to the ILIT, this indemnity style LTC rider does NOT create an incident of ownership in the UL policy.
No Comments 22 Sep 2017
If you've ever found yourself thinking something that starts like this, "I'd sell more life insurance if...", you are not alone. In 2016, we conducted an online survey of insurance and financial professionals that focused on the state of advisor relationships and decision-making criteria regarding their Brokerage Agencies. Hoping to get a better understanding of some of the road blocks insurance advisors face, we asked them to finish the statement "I'd sell more life insurance if..." Below is a compilation of the most common responses we received, coupled with key ways other financial professionals are successfully addressing these road blocks.
No Comments 19 Sep 2017
This Life Insurance Awareness Month we've been sharing a lot of content with you from Life Happens. As we've mentioned before, this is a great resource for advisors and brokers to use and share with their clients. One of the most powerful ways that Life Happens spreads their message is through video. Their website has a plethora of moving and informative videos that explain the importance of life insurance, long term care and more!
Share this video with your clients to remind them of the crucial role that life insurance can play in their lives.Read More
Back to School!
And just like that summer is over. Every year summer seems to breeze by faster and faster and if you have a child entering college this summer probably seemed to fly by extra fast. Whether you're sending your first or last off to college it is a big transition that calls for a lot of planning. Most parents are thrown into the world of FAFSA's pretty quickly and without much direction save for a few information sessions at local high schools. Most likely you have clients who are in this very position, and if you've been there yourself you know how stressful this can be. Make sure your clients are armed with all of the facts and start talking to them about planning for college as early as possible. Both your clients and their children should be looking forward to this new chapter, make sure they are prepared. We've found a few resources for you to share with clients to help get the planning process started!Read More
Do you have clients with traditional IRAs? Are they close to age 70 or older? If so, you need to read on.
Current tax law requires clients who have an IRA and certain other retirement products to start taking a required minimum distribution (RMD) at the age 70 1/2. These minimum distributions are calculated annually based on their age, account balance at the end of the previous year, marital status and their spouse's age. If they do not take the annual minimum distribution, your clients may be subject to a 50% penalty tax on the underpayment, as well as ordinary income tax, as the funds are withdrawn.
The question we typically hear is, “how can I quickly calculate my clients' RMDs?"
We have the solution! Use our simple interactive calculator to get your clients' projected RMDs. This can be accessed when you need it on our website. All you'll need is the following information from your clients.Read More
In celebration of Life Insurance Awareness Month, we're bringing you the most popular life insurance blogs posted by BSMG!
With the recovery of the equities markets after the economic downturn of 2008-2009, it is common for successful business owners, professionals, and other individuals to have more than $1,000,000 in their IRA account.Read More
1 Comment 6 Sep 2017
September is Life Insurance Awareness Month (LIAM)! According to Life Happens, the purpose of highlighting life insurance for an entire month is "to make sure Americans are reminded of the need to include life insurance in their financial plans." Each September, Life Happens is joined in this educational initiative by more than 100 of the nation’s leading insurance companies and industry groups.Read More