September 2007 | Provada

Posted by Nickelle Leist on Wed, Sep 26, 2007 @ 11:08 AM

Life insurance plays an important role in the completion of your client's financial plans. Whether it's to protect their family, fund an estate tax bill, or complete a benefit plan; life insurance is often a necessity in reaching your client's financial objective. As a financial professional one of the commitments a you make to clients is to monitor the client's life insurance needs and existing coverage over time. Conducting a Personal Policy Review Analysis once every three to five years is a critical part of that ongoing obligation to make sure your client's life insurance policy(ies) are keeping pace with their ever-changing needs.

What does a Personal Policy Review Analysis consist of?

A life insurance review consists of two main elements: (1) a review of the client’s current life insurance needs, followed by (2) an analysis of the clients existing life insurance coverage to determine if the death benefit coverage and the type of policy is still appropriate.

The Benefit of conducting a Personal Policy Review Analysis

Conducting a Personal Policy Review represents a great opportunity to further your client advisor relationship; building trust; uncover the need for additional life insurance on the client and or close friend or family member; and create a window for referrals.

EIGHT EASY STEPS TO REVIEWING YOUR CLIENT’S POLICIES:

1. Determine whom you will contact. In other words, who should receive a review?

All of your clients should receive a periodic life insurance needs analysis and evaluation of their existing policies. We recommend that this service be provided at least once every three to five years. When you don't know where to start, skim through your book of business and look for policies that have the following in common: Existing UL, Whole Life, and Term Policies with face amounts of $500,000 plus; Policy owners over the age of 50; Policies that are at least 5 years old; Existing premiums of $10,000 plus; Policies with cash surrender values of $10,000 plus

· A Life Insurance Quick Needs Estimator is a helpful for determining if the policyowners’ needs have changed:

· Has their need for insurance changed

· Have they recently been married or divorced?

· Has a death occurred?

· Has their health status changed?

· Has there been substantial policy activity such as loans, withdrawals, or death benefit changes?

· Has their policy been in trusts, and in dire need of a review?

· Has the policy(ies)been issued by an insurer(s) that has had a drop in ratings?

2. Send out a Pre-Approach Letter(s) with information explaining why it is important for your client to have their policy(ies) reviewed once every three to five years.

3. Perform a complete Client Policy Summary to determine whether or not your clients current policy(ies) is keeping pace with their current and future needs. Remember to use a separate form for each of your client’s policies.

4. Request complete inforce illustration(s) from the carrier(s), regarding all of your client’s existing policies.

For the purpose of requesting information from the carrier, you may need authorization from the client if you have not previously obtained one.

5. Conduct a Current Policy Performance Assessment. This assessment should Review ALL of your client’s existing policies to ensure that the policy(ies) are contributing effectively to the client’s overall insurance plan.

6. Prepare a review to present to the client that includes:

Inforce ledgers
The Current Policy Performance Assessment
Your conclusions and recommendations.

7. Prepare a Policy Comparative Analysis Chart. This chart should compare the inforce policy against the best alternative policies.

8. Help your client make the right decision.

Provada has created a turnkey package for advisors to offer policy reviews to their clients. More details can be found at http://www.provada.com/solutions/policy_review.php and sample documents can be found at http://www.provada.com/tools/policy_review.php (registration required).

[tags]life insurance, policy review[/tags]

Tags: Life Insurance

Posted by Bob Burton on Tue, Sep 25, 2007 @ 08:56 AM

“Crummey” Powers

Crummey powers (named after a man named Crummey whose successful lawsuit validated the technique) are used in connection with Irrevocable Life Insurance Trusts (ILITs) in order to have gifts to the trust qualify for the gift tax annual exclusion. The exclusion is currently $12,000 per donor per donee per year and is indexed for inflation. Only gifts of a “present interest” qualify for the exclusion, and, without Crummey powers, gifts to an ILIT would otherwise be deemed to be gifts of a “future interest”, since the very essence of a trust is to defer enjoyment of the property in the trust until some future time.

Crummey powers need to be carefully drafted and implemented, and we here at Provada are intimately familiar with exactly what is needed in order to make them fully effective. The holders of Crummey powers are typically the primary beneficiaries of a trust, but sometimes these powers need to be given to secondary beneficiaries as well in order to have enough annual exclusions to cover the full life insurance premiums. This can be accomplished by following the “Cristofani” guidelines (Cristofani was another successful taxpayer), and also requires careful drafting and implementation. We are also knowledgeable in this area.

“Defective” Trusts

The word “defective” usually means that something is wrong. In the area of irrevocable trusts, however, making a trust “defective” can often make the trust much more effective. The use of the word here derives from the fact that, under a “defective” trust, all of the income tax consequences of the trust flow back to the grantor of the trust. Originally, this was considered to be a bad thing, hence the word “defective”, but in many situations, it is actually a good thing and can be used to great advantage.

It needs to be clearly understood that we are talking about a trust that is defective for income tax purposes but definitely not for estate tax purposes. This statement alone connotes the importance of careful drafting and implementation, because one of the primary purposes of an ILIT is to be free of estate taxes, and the last thing anyone wants is to defeat that purpose. Another name for a defective trust is a grantor trust, and these trusts are commonly referred to these days as “intentionally defective grantor trusts”. This is another area of proficiency here at Provada, and we are fully familiar with the best defective provisions to include in a trust.

Here are some examples of what can be accomplished with an intentionally defective grantor trust:

·Inforce policies can be sold to the trust rather than gifted, thereby avoiding the three-year estate
re-inclusion rule. This removes the pressure of having the trust in place before the life insurance sale is completed. Since the grantor and the trust are considered to be one and the same for income tax purposes, the sale is deemed to be to the insured, thereby avoiding the transfer-for-value rule.

·Income producing property can be sold to the trust without income tax consequences, thereby producing income within the trust that can be used to pay premiums. Note that the income is taxed to the trust grantor so that all of the income is available to the trust. Note also that this is not considered to be an additional gift to the trust.

·Other transactions, such as loans, can be entered into between the grantor and the trust without income tax consequences to either.

Conclusion

Crummey and defective trusts have become widely accepted as one of the most effective and versatile tools in the field of estate planning. This brief explanation is intended primarily to whet your appetite and to encourage you to contact us for more information.

[tags]life insurance, defective trust, crummey[/tags]

Tags: Advanced Planning, Life Insurance

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Posted by Bob Burton on Thu, Sep 13, 2007 @ 10:06 PM

Life Insurance Awareness Month is a wonderful opportunity for us to remind all of our producers of the remarkable array of benefits and outstanding results that can be achieved with one of the greatest financial instruments ever devised: LIFE INSURANCE!

Life Insurance is the single asset or product that can:

Guarantee the financial stability of the family of a young breadwinner who dies prematurely from any cause;
Continue to provide all of its originally intended benefits and results in the event of a temporary or permanent disability;
Assure that a business can remain a viable functioning entity that employs workers and adds value to the community when an owner dies;
Enable the other owners of the business to carry on without having to create unmanageable debt or otherwise stretch themselves financially;
Allow people with second families to provide for their children from a prior marriage without upsetting their current estate plan;
Provide for special needs children without taking anything away from siblings or other family members;
Protect estates from the devastating shrinkage that would otherwise occur at death from estate taxes, debts, and other expenses, on a 100% tax-free basis;
Leverage small annual outlays into tremendous benefits for almost any purpose that are fully guaranteed under today's products;
Make it possible for people to be generous philanthropists without having to deprive their families of the benefit of their estates;
Enable people to accumulate funds on a tax- deferred basis and later receive tax-free retirement benefits while at the same time providing death benefits;
Allow businesses to provide similar benefits to their top executives on a tax-favored basis and in some cases with no out-of-pocket cost;
Enable grandparents to provide a legacy to their grandchildren without shortchanging the intervening generation;
Provide a profit when no longer needed by taking advantage of the opportunity to arrange for a sale in the secondary market.

WOW! Yes, life insurance can do all of these things... and much more. The Life and Health Insurance Foundation for Education (LIFE) is an organization dedicated to addressing the public's growing need for information and education about life insurance. Check out their website at http://www.life-line.org. And let's all make this our most profitable month ever by helping those we know achieve these wonderful results.

[tags]life insurance, life insurance awareness month[/tags]

Tags: Life Insurance

Posted by Lloyd Silver on Wed, Sep 12, 2007 @ 12:22 PM

The other day I went to Barnes and Noble to find a book on a topic I wanted to learn more about. I normally buy books on Amazon but this situation was ideal for a brick and mortar purchase. I wasn't exactly sure which book to buy and had compiled a short list of those I wanted to review.

So I wandered into the store and walked around for a few minutes until I found the desired section. I then spent a few more minutes looking for the space where my first book should have been located. And of course, it wasn't there. So I searched through neighboring books to see if perhaps it was put on the shelf in the wrong place. No luck. I repeated the same process, with the same results, for the second book I was hoping to browse. My search for the third and final book was successful.

While I found that last book to be interesting, I was really hoping I'd have at least a couple of choices. So I walked over to the check-out counter just a few feet away and approached a Barnes and Noble representative who was unoccupied as there was nobody in line. I asked him if he could look up a couple of books to see if they were in stock. His response: "Customer Service is upstairs."

Why did I go to Barnes and Noble? It certainly wasn't out of convenience. I could easily search and in fact browse (at least a few pages for most books) online at Amazon (or even Barnes and Noble's own online store). I could also look at reviews to help in my buying decision. I went to Barnes and Noble because I wanted an old fashioned book buying experience. I actually wanted to look through shelves and pick up a physical book to review. I wanted help from a knowledgeable person. I wanted to walk out of the store with my new book in hand. Perhaps grab a cup of coffee and start reading right away.

But that entire experience was ruined with those four words: "Customer Service is upstairs." Perhaps I shouldn't be but I was shocked by that attitude. I had always remembered Barnes and Noble being pretty customer friendly. But at this store on that day, the corporate culture clearly did not value the customer relationship.

There are certainly a couple of lessons here. Nothing revolutionary but always worth thinking about. Clients do business with us because they have a specific positive experience in mind that they expect will be delivered upon. They have many choices for all of their product and service providers, including their insurance professional, but they have chosen you specifically because of the experience they plan on receiving. That experience cannot be delivered haphazardly and it cannot be delivered by only certain members of your team. Similarly, customer service is not a department, and it cannot be located "upstairs". It must be core to your company's culture and embraced by everyone who comes in contact with a client.

But most importantly, you need to proactively create a positive and repeatable experience for your clients. Put yourself in your clients' shoes and describe on paper and in detail the experience you wish to create - from the time you first meet them, through the planning and product implementation phase, through the ongoing service that will be provided. And then, go out and ask your best clients to describe for you their ideal experience with your firm. Mesh those together and you have a unique process in place that will ensure delighted clients and many referrals for the rest of your career.

Tags: Client Service

Posted by Bob Burton on Fri, Sep 7, 2007 @ 12:20 PM

“C” Stands for Conserving One’s Assets for Oneself and One’s Family

Conserving one’s assets for oneself obviously must occur during lifetime (which clearly also serves to Conserve those assets for one’s family at death). Conserving assets during lifetime will be covered in detail in this newsletter.

Assuming one has done a good job of Conserving assets during lifetime, Conserving those assets for one’s family at death requires careful and thorough lifetime planning, even though this planning may not take full effect until death. This subject will be covered in detail in our next newsletter.

Conserving assets during lifetime - general considerations

One of the major problems facing all of us during our entire adult lifetimes is the possibility of some adverse, or even catastrophic, event occurring that could wipe out all, or a significant portion, of our assets. This is why almost all of us carry homeowner’s (or renter’s) insurance, automobile insurance, and liability insurance. Some of us in earthquake country also carry earthquake insurance, and some of us in low-lying areas also carry flood insurance. But all of these types of coverage protect only our hard assets. They overlook what are really our most valuable assets: ourselves and our future income-producing capacity. Those of us who work in the financial services field are in a unique position to help our clients correct this typical deficiency in their planning.

Products for Conserving assets during lifetime

The three types of products that immediately come to mind for Conserving assets during lifetime are disability insurance, long-term care insurance, and critical illness insurance.

DISABILITY INSURANCE. Some of us are covered by state-mandated disability income plans and/or employer-sponsored group disability income plans, but these are usually limited in amount and duration and should be supplemented with individual coverage. The rest of us, of course, have to fend entirely for ourselves. Of all types of coverages available during our working years, individual disability insurance (IDI) is perhaps the most overlooked. Yet the chance of a disability occurring during our working years is perhaps three times as great as the chance of dying during that same time period.

There are two primary ways of writing IDI: (1) One way is to pay for it yourself (non-tax-deductible), in which event any disability benefits received will be 100% income tax-free. If your employer pays the premium (deductible) and reports it to you as taxable income, that is the equivalent of paying for it yourself. (2) The other way is for your employer to pay the premium (deductible) as part of an accident and health plan for employees, in which event the premium will not be taxable to you, but all benefits received will be 100% taxable. We believe that most people, given the choice, will opt for the former approach if the employer is willing to pay the premium. Note that with three or more covered individuals on a list bill sent to an employer, typically the business owner(s) plus some employees, there will almost always be a multi-life discount. Note also that employer-sponsored IDI plans can be discriminatory.

Currently, Provada offers excellent IDI products from two strong carriers: Principal and MetLife. Be sure to ask us for proposals and information. (A future newsletter will discuss IDI in more detail.)

LONG-TERM CARE INSURANCE. With dramatic medical advances and increased life expectancies, interest in this type of coverage is literally exploding. The reason for this is clear: the cost of providing long-term care, whether at home or in a facility, can wipe out a lifetime of asset accumulation. This is why the federal government offers a program for federal employees, many states offer programs for their employees, and many trade organizations sponsor programs for their members. In most cases, however, these plans are not nearly as comprehensive as individual long-term care insurance (LTCI), and yet are often just as expensive. If you have clients that are eligible for one of these programs, let us help you compare them to individual LTCI.

LTCI policies and programs vary from state-to-state, with some states sponsoring a highly advantageous program known as the Partnership for Long-Term Care, which typically results in better policies and more secure rates. Whether writing Partnership policies or not, however, the four key factors to consider in designing LTCI (in addition to cost, of course), are: the initial daily benefit, the waiting or elimination period, the duration of benefits, and an inflation factor. The best plan will have a 5% compound inflation increase factor, unlimited benefits, and an attractive elimination period. Almost all policies will have a waiver of premium provision that kicks in when benefits begin. Note that with IDI, inflation factors take effect only when benefits begin, while with LTCI, the inflation factor increases potential benefits from the outset.

There is a possible limited federal income-tax deduction for personally paid LTCI premiums (it depends on one’s other medical expenses), but the most advantageous arrangement is for premiums to be paid by an employer for its employees, including by a “C” corporation for its stockholder-employees: these premiums are 100% tax-deductible by the employer and non-taxable to the covered employees, yet the LTC benefits received remain 100% income tax-free. If you have a client with a “C” corporation, individual LTCI premiums can thus be made 100% tax-deductible. In fact, even with pass-through tax entities (“S” corporations, partnerships, sole proprietorships, and LLCs), if a client’s spouse can legitimately be put on the payroll, the policies for both spouses can be written as a benefit for the spouse, which should make them 100% tax-deductible and non-taxable. As with IDI, employer-sponsored LTCI can be discriminatory.

Provada offers LTCI products from almost all of the major carriers. Be sure to ask us for proposals and information. (A future newsletter will discuss LTCI in more detail.)

CRITICAL ILLNESS INSURANCE. This is a very “new kid on the block”, with only a few carriers offering coverage. It is an interesting type of coverage, however, and we believe it will become increasingly popular in the months and years ahead. Provada is just beginning to develop expertise in this area, and we expect to have more information available to our clients in the near future.

Other techniques for Conserving assets during lifetime

In addition to those techniques that directly involve the sale of insurance products, discussed above, there are other legal arrangements that can be implemented to help Conserve assets during lifetime, such as irrevocable trusts (including special needs trusts in appropriate situations), GRATs, other gifts with valuation discounts, etc. A detailed discussion of these techniques is beyond the scope of this newsletter.

Working with other professional

Some of the plans and programs referred to in this newsletter require the services of our clients’ other professional advisors. By establishing close working relationships with these other professional advisors, we can be of greater service to our clients and can personally benefit as well from additional referrals.

Look for a future post on Conserving assets at death ...

We will follow up shortly with the balance of our discussion on the "C" of Estate Planning, the third component of the A-B-C-Ds...

[tags]life insurance, estate planning[/tags]

Tags: Advanced Planning, Estate Planning, Life Insurance, Other Insurance

Posted by Vickie Bianculli on Fri, Sep 7, 2007 @ 06:00 AM

Knowing the basic timeline prior to submitting a case allows you to set expectations, which gives you and your client a better idea of what to expect. Below is the process and timeline we utilize at Provada, which is fairly typical of well-run Brokerage General Agencies. The first part of this post is specific to life insurance policies while life settlement processing is discussed at the end.

APPLICATION SUMBISSION:

Allow 4-6 weeks for a simple application.
Most Brokerage General Agencies (BGAs) process applications within 24 hours of receipt.
If medical records are required, allow for 2 additional weeks. This can vary depending on the applicant’s doctor’s ability to get the records out to the BGA.

UNDERWRITING REQUIREMENTS:

Clients are typically contacted by the paramedical firm with 24 hours of the requirements being ordered.
BGAs are typically updated weekly by the paramedical facility.
Once the exam is completed, results are received within 5-7 working days.
An average turn around time of 10-14 working days for medical records ordered from doctors and medical facilities.

POLICY DELIVERY:

Carriers usually allow 3-4 weeks for a producer to deliver and place a policy. Some carriers allow more time.
Delivery extensions can be requested if the delivery period is close to expiring.
BGA typically process delivery requirements on the same day received.

QUICK QUOTES AND INFORMALS:

Quick quotes are reviewed and processed within 24 hours.
A Carrier's response for a quick quote usually happens within 48 to 72 hours.
Tentative quotes are then prepared.
Informals are processed within 24 hours by ordering medical records.
Once all records are received, allow 48 hours for review of records.
Each case is summarized and submitted to the respective carriers for tentative offers; a) If complete records are sent to the carrier, allow 10 to 14 days for a tentative offer; b) If only a summary is provided, allow 48-72 hours for a tentative offer.
Once all offers are received, quotes are prepared within 48 hours.
If an offer is accepted, the formal application process begins.

LIFE SETTLEMENTS:

Medical records are ordered within 24 hours of receiving the Life Settlement inquiry.
Allow 10-14 days for receipt of medical records.
Once medical records are received, Life Expectancies are requested with a turnaround time of 4 weeks.
When the life expectancy is received, the information is distributed to the various providers for offers.
Responses from the funding companies average about 2-3 weeks.
Negotiating can take up to 10 additional days
Once an offer has been accepted, allow about 1- 2 weeks to prepare documents and obtain verifications.
The sale is completed when all parties have signed the contracts, and change of ownership and beneficiary is done.
Funds are released to the insured within 2 weeks.
Obviously, we do our best to minimize the processing of all of our cases, but there are instances when cases are held up that are beyond our control. We will get the producer involved if we must, but we try to avoid that as much as possible.

[tags]life insurance, life settlements, underwriting[/tags]

Tags: Life Insurance, Life Settlements, Underwriting

Posted by Lloyd Silver on Thu, Sep 6, 2007 @ 01:52 PM

Several life settlement providers have recently launched small face amount programs for policies under $500,000. Backed by large institutional funding, the "SFP" program is a simple and fast way to include Life Settlements in your insurance practice!

With just the application and illustration, your client can receive a competitive Life Settlement offer for qualifying policies!

No medical records or life expectancy report required!
Offer in 10 days or less!
Move to closing fast!

How is this possible?

Size of the Market - Policies of $25,000 to $500,000 comprise the vast majority of inforce policies. By targeting these policies, a large number of our producers should benefit from this program.
Ease of the Process - Attending Physician's Statements and Life Expectancy reports are not required to obtain an offer. Simply submit a special application and illustration, and that's it!
Tremendous Profits - The huge volume potential, combined with no out-of-pocket cost to obtain an offer, equals a highly profitable business.

[tags]life settlements[/tags]

Tags: Life Settlements

Posted by Bob Burton on Thu, Sep 6, 2007 @ 08:35 AM

Non-tax-qualified retirement plans

In addition to tax-qualified retirement plans, non-tax-qualified plans offer many fruitful possibilities. For discussion purposes, these plans can be broken down into two primary categories -- employer-sponsored plans (SERPs and Deferral Plans) and individually implemented plans -- but the “funding” considerations are much the same. All of these plans can be effectively “funded” with individual life insurance policies, but these policies should be specially designed to maximize the cash accumulation by minimizing the mortality costs. Whole Life policies have their own special design considerations, such as the availability of paid-up additions purchased both with policy dividends and with outside funds, but for Universal Life policies, be they Variable ULs, Indexed ULs, or Traditional ULs, the design structure is generally (1) to have the lowest possible face amount in all years, (2) to avoid creating a Modified Endowment Contract (MEC), (3) to use the “Face Amount Plus Cash Value” death benefit option while funds are being contributed to the policy, and (4) to switch to the “Level” death benefit option in all years thereafter, especially during the years when funds are being withdrawn from the policy. Regarding the withdrawal of funds, they are typically straight withdrawals up to cost basis and policy loans thereafter so as to make them all income tax-free. A key objective here is making sure that the policy stays in force until the insured dies so as avoid creating a significant income taxable event on phantom income.

Working with other professionals

Many of the plans referred to in this post require the services of our clients’ other professional advisors, especially those plans that involve ERISA considerations. By establishing close working relationships with these other professional advisors, we can be of greater service to our clients and can personally benefit as well from additional referrals.

[tags]life insurance, estate planning[/tags]

Tags: Advanced Planning, Estate Planning, Life Insurance

Posted by Lloyd Silver on Wed, Sep 5, 2007 @ 12:44 PM

WHAT’S THE DIFFERENCE BETWEEN LIFE SETTLMENTS AND VIATICAL SETTLMENTS?

Life settlement is the sale of an unwanted or inefficient life insurance policy for an amount greater than the cash surrender value of that policy. Often times the policy’s fair market value substantially exceeds the cash surrender value determined by the issuing insurance carrier. A Viatical settlement usually refers to a transaction involving a chronically or terminally ill insured, usually defined as a person with a life expectancy of less than two years. Provada only engages in life settlements.

FOR HOW MUCH WILL AN OFFER BE?

The amount of money that you will receive from selling your life insurance policy depends on a number of factors such as:

Age
Medical Condition
Type of Insurance Policy
Rating of the issuing insurance policy
The amount of money left on the policy to be paid
Competition for the policy

Each funding company bases its offers upon its own set of underwriting criteria. Best offers must always be negotiated.

HOW CAN THE PROCEEDS BE SPENT?

The proceeds of a life settlement may be used for any purpose whatsoever including being a first-year dump-in of a new policy that offers the client protection at a lower ongoing cost than the settled policy would have.

WHAT HAPPENS TO THE POLICY AFTER IT’S BEEN SOLD?

All benefits and responsibilities are transferred to the institutional buyer upon the closing of a life settlement transaction. The previous policy owner has no further obligation to make premium payments, nor are the beneficiaries entitled to any of the proceeds. Typically once per year a representative of the buyer will contact a person designated by the insured (often an advisor) to confirm that the insured is still alive.

HOW ARE THE PROCEEDS OF LIFE SETTLEMENTS TAXED?

There has never been an official IRS determination regarding the taxation of life settlements. Most industry professionals and accountants believe the proceeds from a life settlement are:

Tax-free up to the amount of premiums paid (basis);
Taxed as ordinary income up to the cash surrender value; and
Taxed as capital gains above the cash surrender value.

NOTE: We suggest you consult a knowledgeable tax advisor regarding tax questions.

[tags]life settlements[/tags]

Tags: Life Settlements

Posted by Bob Burton on Wed, Sep 5, 2007 @ 10:31 AM

Living trusts or wills with testamentary trusts

In these situations, then, should we not suggest a living trust, or at least a will containing a testamentary trust, with the trust named as contingent beneficiary if not sole beneficiary? After all, the living trust or testamentary trust instrument will contain the couple’s overall estate plan, and it makes perfect sense to incorporate their largest asset at death into that plan. And as a stop-gap measure if, as is likely, the clients do not already have these basic estate planning documents in place, should we not suggest a Custodianship under the applicable state’s Uniform Gifts (or Transfers) to Minors Act, which is somewhat akin to a statutory trust for the minor children?

Working with other professionals

By following these suggested procedures, we will be helping our clients become aware of the critical importance of estate planning, regardless of their position in life; and since we will often be referring them to the estate planning attorneys we know, the process can only help us to strengthen and build our relationships with these other estate planning professionals.

Fulfilling the client's asset accumulation objectives

Of course, many of us also sell investment-type products as part of our practices, which puts us right in the middle of our clients’ asset accumulation strategies. We need to be aware, therefore, of the many tools available to us that can help us help our clients achieve their objectives in these areas, and we must also pay careful attention to how these assets are titled and how they are integrated into our clients’ overall estate plans.

In essence, then, almost everything we do in our businesses directly or indirectly relates to our clients’ estate planning. It behooves us, therefore, to become as familiar as possible with all aspects of the estate planning process.

[tags]life insurance, estate planning[/tags]

Tags: Advanced Planning, Estate Planning, Life Insurance

Posted by Bob Burton on Tue, Sep 4, 2007 @ 10:33 AM

Many people think that estate planning is only for the wealthy or only for older individuals. They may also feel that it is much too complicated and expensive.

Nothing could be further from the truth!

Bob Burton breaks down estate planning into its essential components -- the A-B-C-Ds of Estate Planning. Utilizing this breakdown will give your clients the ability to view their estate planning with a wide angle lens.

A. = Accumulate

Estate planning really begins with the Accumulation of asset values, and actually occurs every time you write a life insurance policy.

B. = Benefit
When sufficient net worth has been achieved and family obligations permit, one should think about reaping the Benefits of one's wealth accumulation efforts with careful and thorough retirement planning.

C. = Conserve
The uncertainties of life and aging coupled with the high cost of dying make it necessary to take active steps to Conserve your accumulated property for yourself and your family during your lifetime, and ultimately for your heirs and beneficiaries.

D. = Distribute
The final step in the estate planning process is to arrange for the desired and orderly Distribution of your estate to the chosen objects of your bounty; even the beneficiary designation in a life insurance policy or for retirement plan assets is an act of estate distribution of those assets.

[tags]life insurance, estate planning[/tags]

Tags: Advanced Planning, Estate Planning, Life Insurance

Posted by Lloyd Silver on Tue, Sep 4, 2007 @ 07:46 AM

Today we launch The Producers Edge - a weblog and podcast for successful insurance professionals. Our team of highly experienced marketers, innovators, and industry leaders will be regularly providing content to help our readers thrive in what they do.

We encourage comments and discussion within posts, and welcome feedback on how we can make The Producers Edge an integral part of your practice. This week we'll be focusing on adding blog entries soon followed by the launch of our podcast series.

Thank you for coming by and welcome to The Producers Edge.

Tags: General

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