Help US Make YOUR Life Easy
(This will piggyback on Eric Gronlund’s great blog post of last week: “Six Questions to Ask Your Client Before You Submit an Application!”)
We’re sure you all agree that one of the worst things that can happen in our business is to disappoint a client or a prospect. For you, this applies to your insureds and prospective insureds; for us, it applies to all of you, because YOU are OUR clients.
Here are three tips that should help avoid disappointments:
Avoid Contracting Delays By Keeping Your AML Current
The biggest delay in contracting is confirmation that Anti-Money Laundering Training (aka AML) is current. This training is mandatory with all carriers. Make it a New Years resolution to update your AML every January through LIMRA. The carriers can easily obtain verification through LIMRA that your training is current. If Anti-Money Laundering training is not satisfied, it may not only delay contracting but issuance of the policy. You will find the link to LIMRA on Provada's website, under the contracting tab.
While the cash value may not seem important now, what happens if….
“My Client thinks cash values are unnecessary and only wants the cheapest premium.”
While the cash value may not seem important now, what happens if….
Provada Launches New Website
We are pleased to announce the release of Provada's new web site and client center. This is a completely revamped site with easier access to all of the tools and resources our clients need in their life insurance practice through our Client Center. Additionally, we have moved our blog from an external domain to www.provada.com/blog.
The Need for Political Impact – Revisited
It was emphasized several times over that the tax benefits of life insurance are more at risk today than they have ever been in the past. This applies not only to the tax-free build-up of cash values but also to
Ben Stein Says Digging and Filling Holes Not the Solution
Ben Stein spoke at last night’s dinner at the annual meeting of the Association for Advanced Life Underwriters.
Taking Action in the Political Forum
Personal Political Impact
Changing demographics in the working world!
According to a Harris Interactive survey conducted for CareersBuilder.com, close to 3 out of 5 workers age 50+ intend to look for work elsewhere once they retire from their current jobs. The top 2 reasons given for continuing to work were that they could not afford to retire (44%) and that they needed health insurance benefits (33%).
S Corporation almost terminated
IRA: PLR 200802008* Inadvertently almost caused the Termination of S Corporation
Background:
An S corporation is a regular corporation that has elected a special tax status for federal income tax purposes. Rather than being taxed at the entity level, all items of income and deduction of S corporation are taxed at the shareholder level. (In effect, these items “flow through” to the shareholders.) “S” status is a privilege, and in order to maintain it, the corporation and shareholders must continue to meet stringent requirements.
In the facts of PLR 200802008*, S corp shares were issued to an individual retirement account (IRA) for the benefit of shareholder A. While certain qualified plans are permissible shareholders of S corps, an IRA is not a permissible shareholder. After a period of time, the shareholder (A) and the corporation realized this error. (The shares were subsequently distributed from the IRA to A.) Technically, the S election was inadvertently terminated at the moment the IRA acquired the shares.
However, under IRC Section 1362(f), the IRS may waive this result if the termination is truly found to be inadvertent. The IRS was willing to treat the corporation as a valid S corp from a stated date going forward, but subject to certain conditions. Two of the conditions were as follows. For the years that the corporation generated a loss, the IRA would be deemed the shareholder. For the years where the corporation generated a gain, A (the individual) would be treated as the shareholder. In short, the IRS was able to impose a kind of “heads I win, tails you lose” tax treatment. The “loss” would not be of significant use to the IRA (because of its tax exempt status) and the “gain” would be attributable to taxable individual (A)!
Significance:
Welcome to The Producers Edge
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.
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