Accounts Receivable Financing Strategies

Size: px
Start display at page:

Download "Accounts Receivable Financing Strategies"

Transcription

1 1 Accounts Receivable Financing Strategies Presented by: AIG Life Brokerage

2 2 Important The information presented herein is not a comprehensive analysis of the topic presented. Please be advised that any information provided in this presentation shall not be construed by any person as legal, tax or accounting advice. AIG American General Life Insurance strongly suggests that any life insurance owner, proposed owner, insured or proposed insured retain the services of qualified tax, accounting and legal counsel for advice on matters presented herein. The contents of this transmission are intended for agent use only. To ensure compliance with requirements imposed by U.S. Treasury Regulations, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

3 3 What we ll cover: -Accounts receivable (A/R) defined -Strategy in a nutshell -Prospective clients -Role of insurance products -Asset protection issues -Case scenarios -Your A/R financing strategy facilitators -Next steps

4 4 What are accounts receivable?? -Balance sheet item -- asset - Loan to the company s clients

5 5 Accounts receivable are Account Receivables

6 6 Accounts receivable are usually Accounts Receivable

7 7 But, what if we could Accounts Receivable

8 8 What you can do with accounts receivable: 1) Nothing 2) Sell it to a bank at discount (factoring), or 3) Leverage its value with an accounts receivable financing strategy

9 9 How does accounts receivable financing differ? Accounts receivable are used as collateral for a loan

10 10 Loan proceeds are: -Typically deposited into life insurance or annuity products -Lender takes security interest in the product as additional collateral

11 11 In a nutshell: - Business borrows against its accounts receivable -Take loan proceeds, make a distribution to employee -Purchase a tax deferred insurance product with loan proceeds

12 12 Client objectives? -Better protect client assets from creditors -Acquire a life insurance policy that can repay the loan and provide death benefits in the event of untimely demise

13 13 Objectives continued -Potential growth of cash values on a tax advantaged basis that can be used to repay loan and/or provide supplementary income once insurance protection is no longer first priority.

14 14 (2) Business/practice In a nutshell Loan interest Loan proceeds (1) Lender Start here loan proceeds to: (3) Client pledges accounts receivable Places loan proceeds in: Policy is pledged as collateral (4) Insurance Policy

15 15 Prospective clients Physicians/medical practices Almost any business with accounts receivable (or other highly predictable cash flows) Those who desire to grow & protect assets

16 16 Physicians personally liable for malpractice claims

17 17 And malpractice liability insurance may not be the total solution to physician concerns

18 18 Challenges of -identifying malpractice carrier with sufficient capacity, -paying the premium (rates have skyrocketed), -lack of tort reform (some states), -the hammer clause

19 19 What Does It All Mean? Claims are increasing in number and size Malpractice insurance is either unavailable or insufficient Most available asset to plaintiffs may be A/R A/R is usually the practice s largest asset A/R is dormant for financial purposes

20 20 Client s Objectives -Protect the practice or business assets -Deter frivolous lawsuits -Encourage settlement

21 21 -Reposition accounts receivables into an asset with growth potential -Can provide a plan to repay the loan, upon a variety of triggering events -Policy cash values, over long term, may provide supplemental retirement income

22 22 (2) Business/practice In a nutshell Simple loan interest (1) Lender Start here Loan proceeds (3) loan proceeds Client pledges accounts receivable Places loan proceeds in: (4) collateral Insurance Policy

23 23 Why insurance products? Life insurance -Financial protection in event of premature death -Tax advantaged cash value growth within the policy -Access to policy withdrawals and tax deferred or similarly advantaged loans* *non-modified endowment life insurance contracts

24 24 Certain states offer creditor exemption for insurance death benefits and cash value of life insurance. Varies by state* *Limited availability based upon applicable state law. Prospective clients are strongly encouraged to consult with legal counsel to determine the existence and the extent of creditor exemption for life insurance in their state, if any.

25 25 Asset Protection: protecting the A/R and the loan proceeds

26 26 Move loan proceeds into: Policy Life and/or annuity products

27 27 Loan repayment exit strategies -Accounts receivable collected -Proceeds from sale of business or practice -Other assets -Withdrawal or loan from insurance product -Death proceeds in event of an untimely death -Combination of above

28 28 Two AIG approved A/R financing facilitators*: -Entaire Global Companies, Inc. -ARLIS (accounts receivable leveraged insurance strategies) *Firms above are not lenders. Lending performed by other parties. Insurance products offered through licensed producers of AIG Life Brokerage/American General Life Insurance Company. Named firms above market and/or administer accounts receivable loan and insurance purchase arrangements.

29 29 ENSHIELD Program From Entaire Global Companies, Inc.

30 30 ENSHIELD Steps Producer becomes an Entaire trained Technical Specialist (TS)- via EGU (Entaire Global University) Producer meets w/client; client completes PDF* Entaire reviews PDF Producer gathers required documentation Illustration & proposals prepared by Entaire *PDF = Personal Data Form

31 31 Steps continued Formal insurance underwriting by Concierge UW Entaire added to life application for 20% of case After final insurance underwriting offer, client completes loan documents -- provides to Entaire UCC-1 completed and funds wired to AIG Life Brokerage Policy delivered to Global One Financial, Inc., Entaire s wholly-owned lending subsidiary* *Entaire s subsidiary plan administration company (Entaire Global Plan Administrators, Inc.) administers the plan

32 32 Entaire-other Loan is interest only (simple) Minimum loan: $100,000 10, 15, or 20 year term (at client s option), renewable Competitive borrowing rate No personal guarantee 2, 3, 4, or 5 pay premium (all premium committed up front) Interest is only credited on amounts that have been deposited into the AIG policy AG Elite Value Index Universal Life (form 05441)

33 33 Entaire Global Companies, Inc. Contact Advanced Sales for more information

34 34 ARLIS (Accounts Receivable Leveraged Insurance Strategies) Lender: A.I. Credit Same lender as CMS (traditional premium financing) Lifetime, non-callable loans 5-pay funding (or less) with Elite Value Index UL product Either one loan with premium deposit account; or One commitment for 5 loans Uses interest rate between midpoint & current for collateral (currently around 6.5%); subject to annual adjustment

35 35 ARLIS ARLIS: 20% case split on the application Ben Renzo (Des Moines) former plaintiff attorney works on financing Lalat Pattanaik (Los Angeles) experienced benefits administrator in medical market works with producer Web-based proposal request A/R proposal, EVIUL illustration & Powerpoint presentation

36 36 ARLIS contact Advanced Sales for more information

37 37 John Doe, M.D.* -Age 49, specialist in neo-natal care -annual wage income approx: $ 600,000 -average receivables: $1 million *Hypothetical illustration only. Actual results may differ significantly from those represented herein.

38 38 John Doe, M.D. -A/R represents primary practice asset -Doctor is well aware of potential exposure to malpractice liability claims -loss of A/R potentially economically disastrous

39 39 A/R size and potential malpractice liability generate a concern for Dr. Doe How may this asset be protected?

40 40 Potential Solution financing the A/R subject to a perfected first lien placing loan proceeds into a life insurance product

41 41 Mechanics Third party lender makes loan to practice & takes A/R as collateral From loan proceeds, practice makes a distribution to Dr. Doe Dr. Doe purchases life insurance, max funded, minimum death benefit, non-modified endowment Policy pledge serves as additional loan collateral

42 42 Loan is structured to either: pay each recurring scheduled premium, or one loan is made and held in a premium deposit fund and disbursed as needed Policy is typically structured for 3 or 5 consecutive annual premiums Dr. Doe, through his practice, pays interest only on outstanding loan balance

43 43 Practice maintains loan arrangement for as long as desired, until death, retirement, or other exit Doctor repays loan upon exit, lender releases the perfected lien against the A/R & the assignment of the policy

44 44 Five payment example* Year Premium death benefit cash surrender value 1 $ 200,000 $ 3,117,000 $ 200, ,000 3,117, , ,000 3,117, , ,000 3,117, , ,000 3,117,000 1,012, ,117,000 1,325,122 Age 65 3,117,000 2,076,337 *Hypothetical Illustration created May, Male 49, Pref. Plus NT, Illinois, $200,000 annual premium, 5 annual premium payments, AG Elite Value Index UL, (form 05441), based upon hypothetical indexed interest earnings rate: 8.08%. Current rate: 5.4%, Guaranteed rate: 1%

45 45 Example continued Estimated withdrawals & loans from policy, commence age 65 for 15 years*: $199,845/year *AG Elite Value Index Universal Life, policy form 05441, Indexed interest at hypothetical 8.08%. Withdrawals to cost basis not taxable. Loans not currently taxable as long the policy remains in force.

46 46 AG Elite Value Index UL (form #05441) Index UL created by AIG American General primarily for the A/R market Index design may potentially maximize the A/R opportunity Only available in company approved A/R programs

47 47 AG Elite Value Index UL (form #05441) Based on Elite Index UL: Interest crediting tied to S&P 500 index; annual point to point 1% minimum interest guarantee Annual interest crediting cap- now 12%

48 48 AG Elite Value Index UL (form #05441) Based on Elite Index UL: 20 year look back illustration rate; now 8.08% Annual election of index interest crediting or excess interest crediting

49 49 AG Elite Value Index UL (form #05441) Based on Elite Index UL: no surrender charges near 100% cash value in year 1 on current basis (maximizes the value of pledged collateral) preferred underwriting class offered thru age 90

50 50 AG Elite Value Index UL (form #05441) spread compensation to producer high targets near MEC premium commission chargebacks (100% yrs. 1 & 2, 50% yr. 3)

51 51 AG Elite Value Index Universal Life (form #05441) Only available for AIG pre-approved programs/situations Work with AIG Life Brokerage Advanced Markets to illustrate

52 52 Next steps? -Identify your prospects -Review approved TPA and AIG website materials -Select a facilitator -Proceed with training & data taking procedures

53 53 Arlis: www. arstrategy.com Entaire: AIG Life Brokerage:

54 54 Thank you! Accounts Receivable Financing Strategies Presented by: AIG Life Brokerage

Advanced Sales EXCELLENCE PARTNERING FOR ACCOUNTS RECEIVABLE FINANCING. Informational ideas important to large and complex cases

Advanced Sales EXCELLENCE PARTNERING FOR ACCOUNTS RECEIVABLE FINANCING. Informational ideas important to large and complex cases Advanced Sales Informational ideas important to large and complex cases PARTNERING FOR EXCELLENCE Vol II, Issue 2 May 2006 ACCOUNTS RECEIVABLE FINANCING by Glenn H. Plotkin, J.D., M.S., CFP, CLU, ChFC,

More information

Accounts Receivable Financing

Accounts Receivable Financing Life Accounts Receivable Financing Accounts Receivable Financing A Planning Strategy for Business Owners Producer Guide These materials are not intended to be used to avoid tax penalties, and were prepared

More information

Premium Financing: Common Financing Traps and Dilemmas

Premium Financing: Common Financing Traps and Dilemmas Premium Financing: Common Financing Traps and Dilemmas Premium financing is often used as a way for a client to leverage his or her current liquid assets. Instead of writing the check for the premium due,

More information

Leveraging wealth transfer using private financing

Leveraging wealth transfer using private financing Private Financing Strategy Leveraging wealth transfer using private financing Not a bank or credit union deposit or obligation Not insured by any federal government agency Not FDIC or NCUA/NCUSIF insured

More information

Premium Financing of Life Insurance

Premium Financing of Life Insurance Element Insurance Partners 13520 California Street Suite 290 Omaha, NE 68154 402-614-2661 dhenry@elementinsurancepartners.com www.elementinsurancepartners.com Premium Financing of Life Insurance Page 1

More information

Traditional Life Insurance Premium Financing

Traditional Life Insurance Premium Financing Traditional Life Insurance Premium Financing Cascade Wealth Preservation is the advanced planning destination. For years, high net worth individuals have faced the challenge of weighing the need to purchase

More information

Life Insurance-Premium Financing BY MATT HEALY MANAGING DIRECTOR, CLIENT RISK MANAGEMENT

Life Insurance-Premium Financing BY MATT HEALY MANAGING DIRECTOR, CLIENT RISK MANAGEMENT Life Insurance-Premium Financing BY MATT HEALY MANAGING DIRECTOR, CLIENT RISK MANAGEMENT Life Insurance-Premium Financing BY MATT HEALY MANAGING DIRECTOR, CLIENT RISK MANAGEMENT EXECUTIVE SUMMARY Life

More information

Accessing the Cash Values in Your RBC Insurance Universal Life Plan

Accessing the Cash Values in Your RBC Insurance Universal Life Plan Accessing the Cash Values in Your RBC Insurance Universal Life Plan Learn the advantages and disadvantages of the three ways you can access your money Contents: Three ways to access your Cash Values...............................

More information

Getting the most from premium financing for fixed and indexed universal life

Getting the most from premium financing for fixed and indexed universal life Getting the most from premium financing for fixed and indexed universal life Important Notes Neither AIG Life Brokerage, nor its employees or representatives, give legal, accounting or tax advice. The

More information

Section 11 Asset Protecting Your Accounts Receivables Accounts Receivable Leveraging

Section 11 Asset Protecting Your Accounts Receivables Accounts Receivable Leveraging Section 11 Asset Protecting Your Accounts Receivables Accounts Receivable Leveraging Leverage Your Office s Accounts Receivables (A/R) for Asset Protection, Estate Planning, and Potentially to Create Retirement

More information

64168 MK3373(0209) TC45365(0209) Premium Financing Alternative Funding to Help Meet Your Life Insurance Needs

64168 MK3373(0209) TC45365(0209) Premium Financing Alternative Funding to Help Meet Your Life Insurance Needs 64168 MK3373(0209) TC45365(0209) Premium Financing Alternative Funding to Help Meet Your Life Insurance Needs What is Premium Financing? Simply put, premium financing is a strategy for paying for life

More information

Account Receivable Financing/Leveraging

Account Receivable Financing/Leveraging Account Receivable Financing/Leveraging Copyright, The WPI 2006 1 Introduction The concept of Accounts Receivable Financing has evolved from traditional factoring (selling A/R at a discount for immediate

More information

An Overview Guide for Individuals. Whole Life Insurance as Part of Your Accumulation Strategy. Insurance Strategies

An Overview Guide for Individuals. Whole Life Insurance as Part of Your Accumulation Strategy. Insurance Strategies An Overview Guide for Individuals Whole Life Insurance as Part of Your Accumulation Strategy Insurance Strategies Contents 1 Long-Term Value 3 Whole Life Policy Cash Values 4 Addressing Different Financial

More information

Key Person Coverage. Prepared for: Date: Presented by:

Key Person Coverage. Prepared for: Date: Presented by: Key Person Coverage Prepared for: Date: Presented by: PURPOSE This presentation is for the purpose of helping you understand how life and disability income insurance can be used to overcome the shock to

More information

TRANSAMERICA LIFE INSURANCE COMPANY TransACE. Life Insurance Supplemental Illustration. Premium Financing:

TRANSAMERICA LIFE INSURANCE COMPANY TransACE. Life Insurance Supplemental Illustration. Premium Financing: Premium Financing: Leveraging Your Net Worth Financing Life Insurance Premiums with a Third-Party Lender Prepared For: Valued Client Prepared By: Transamerica 1150 S Olive Street Los Angeles, CA 90015

More information

Freedom to enjoy tax-free retirement income

Freedom to enjoy tax-free retirement income Tax-efficient retirement income Using life insurance Freedom to enjoy tax-free retirement income 291194 F (9/13) The Protect. Grow. Give. philosophy With life and disability income insurance, you have

More information

Life Insurance as a Potential Private Source of Cash

Life Insurance as a Potential Private Source of Cash Life Insurance as a Potential Private Source of Cash Planning Perspective Life Insurance Products: Are Not a Deposit of Any Bank Are Not FDIC Insured Are Not Insured by Any Federal Government Agency Are

More information

Life Insurance: Your blueprint for Wealth Transfer Planning. Private Financing Producer Guide. For agent use only. Not for public distribution.

Life Insurance: Your blueprint for Wealth Transfer Planning. Private Financing Producer Guide. For agent use only. Not for public distribution. Life Insurance: Your blueprint for Wealth Transfer Planning Private Financing Producer Guide Private Financing Most people don t object to owning life insurance, they just object to paying the premiums.

More information

Nonqualified deferred compensation plans

Nonqualified deferred compensation plans Fixed index universal life insurance (R-2/205) Allianz Life Insurance Company of North America Nonqualified deferred compensation plans A cost-effective way to reward and retain employees Fixed index universal

More information

An Overview Of Premium Financed Life Insurance

An Overview Of Premium Financed Life Insurance An Overview Of Premium Financed Life Insurance Introduction The purpose of this presentation is to assist you in understanding how life insurance can be funded using a bank loan as a means of financing

More information

Multi Choice. Single Premium Life. Consumer Product Guide 15682 7/10

Multi Choice. Single Premium Life. Consumer Product Guide 15682 7/10 Multi Choice Single Premium Life Consumer Product Guide 15682 7/10 Table of contents Multi Choice Single Premium Life Why MC Single Premium Life 2 SPL checklist 3 How life insurance is different 4-5 Other

More information

Private Placement Life Insurance

Private Placement Life Insurance Private Placement Life Insurance Robert W. Chesner, Jr. Leslie C. Giordani 100 CONGRESS AVENUE, SUITE 1440 AUSTIN, TEXAS 78701 phone 512.767.7100 fax 512.767.7101 WWW.GSRP.COM 2009 2015 Giordani, Swanger,

More information

Getting the Most from Your Insurance

Getting the Most from Your Insurance SMART STRATEGIES Getting the Most from Your Insurance This information is written in connection with the promotion or marketing of the matters addressed in this material. The information cannot be used

More information

Description of Employer Cash Flow and Assets

Description of Employer Cash Flow and Assets Description of Employer Cash Flow and Assets SERP Select Account Liability Column 1 Employer Contribution The annual contribution promised by the employer to the key employee. The duration and amount of

More information

Understanding Your Life Insurance Options

Understanding Your Life Insurance Options Understanding Your Life Insurance Options Designed for: Marathonbenefits.com Designed by: Marathon Benefit Corp. Ph: 403-238-7343 sales@marathonbenefits.com September 17, 2010 U N D E R S T A N D I N G

More information

The Hartford Saver Solution SM A FIXED INDEX ANNUITY DISCLOSURE STATEMENT

The Hartford Saver Solution SM A FIXED INDEX ANNUITY DISCLOSURE STATEMENT The Hartford Saver Solution SM A FIXED INDEX ANNUITY DISCLOSURE STATEMENT THE HARTFORD SAVER SOLUTION SM FIXED INDEX ANNUITY DISCLOSURE STATEMENT This Disclosure Statement provides important information

More information

Maximize Your Pension with Life Insurance

Maximize Your Pension with Life Insurance Maximize Your Pension with Life Insurance How Death Benefit Protection Can Help You Get the Most Out of Your Pension Benefits Client Brochure Achieve financial protection while maximizing your pension

More information

ESOP Repurchase Obligation Funding

ESOP Repurchase Obligation Funding FOR BUSINESS OWNERS Employee Stock Ownership Plans ESOP Repurchase Obligation Funding What is your obligation? Repurchase obligation is the liability a company incurs when vested terminated participants

More information

Wealth Planning Insights

Wealth Planning Insights Wealth Planning Insights Wealth Management Consulting March 2014 Contents Create a safety net for your family with life insurance Pages 1 4 The loss of income due to the premature death could seriously

More information

A STABLE CHOICE FOR YOUR FINANCIAL FUTURE.

A STABLE CHOICE FOR YOUR FINANCIAL FUTURE. Universal Life Insurance Accumulator UL Protection. Preservation. Predictability. Financial Professional FIXED A STABLE CHOICE FOR YOUR FINANCIAL FUTURE. Insurance products are issued by Minnesota Life

More information

Wealth Creation Planning

Wealth Creation Planning Wealth Creation Planning A better way to own Life Insurance! Life insurance is the most effective way to protect against the financial risk and strain of a premature death. However, large or long term

More information

Flexible Premium Adjustable Life Insurance Policy Illustration

Flexible Premium Adjustable Life Insurance Policy Illustration Flexible Premium Adjustable Life Insurance Policy Illustration Prepared for: d Client Prepared by: Illustration Desk 2801 Townsgate Rd. Suite 350 Westlake Village, California, 91361 Tel: 800-350-2019 License

More information

Effective Planning with Life Insurance

Effective Planning with Life Insurance Effective Planning with Life Insurance The Tax Considerations... Ken Knox, CLU, ChFC Regional Director The Penn Mutual Life Insurance Company 1304529TM_Sept17 Retirement Planning Case Scenario #1... Client

More information

WHAT IS PREMIUM HOW DOES PREMIUM FINANCING? FINANCING WORK?

WHAT IS PREMIUM HOW DOES PREMIUM FINANCING? FINANCING WORK? Life Insurance Premium Financing 1 of 5 WHAT IS PREMIUM FINANCING? Premium financing allows individuals who have a life insurance need to defer using their liquid assets to fund a life insurance policy.

More information

Comprehensive Split Dollar

Comprehensive Split Dollar Advanced Markets Client Guide Comprehensive Split Dollar Crafting a plan to meet your needs. John Hancock Life Insurance Company (U.S.A.) (John Hancock) John Hancock Life Insurance Company New York (John

More information

The Hartford Saver Solution Choice SM A FIXED INDEX ANNUITY DISCLOSURE STATEMENT

The Hartford Saver Solution Choice SM A FIXED INDEX ANNUITY DISCLOSURE STATEMENT The Hartford Saver Solution Choice SM A FIXED INDEX ANNUITY DISCLOSURE STATEMENT THE HARTFORD SAVER SOLUTION CHOICE SM FIXED INDEX ANNUITY DISCLOSURE STATEMENT This Disclosure Statement provides important

More information

CORPORATE RETIREMENT STRATEGY ADVISOR GUIDE. *Advisor USE ONLY

CORPORATE RETIREMENT STRATEGY ADVISOR GUIDE. *Advisor USE ONLY CORPORATE RETIREMENT STRATEGY ADVISOR GUIDE *Advisor USE ONLY TABLE OF CONTENTS Introduction to the corporate retirement strategy...2 Identify the opportunity - target markets... 3 Policy ownership: corporate

More information

A guide to buying insurance

A guide to buying insurance A guide to buying insurance What you should know before you buy Is life insurance right for you? Life insurance policies are designed for people who: Want to replace income that is lost due to death Seek

More information

Retirement Enhancer. A tax-efficient way to enhance your retirement income using universal life insurance

Retirement Enhancer. A tax-efficient way to enhance your retirement income using universal life insurance Retirement Enhancer A tax-efficient way to enhance your retirement income using universal life insurance Will you have enough retirement income to fulfil your dreams? Today, many of us are living longer

More information

An Alternative to Roth IRAs When Limits Apply

An Alternative to Roth IRAs When Limits Apply Consumer Material I Index Universal Life Insurance FINANCIAL STRATEGY An Alternative to Roth IRAs When Limits Apply Using Asset Builder Index UL II Sometimes success presents challenges of its own. You

More information

B1096013NW. Safe Return. a fixed-indexed annuity from Great American Life Insurance Company, a subsidiary of Great American Financial Resources, Inc.

B1096013NW. Safe Return. a fixed-indexed annuity from Great American Life Insurance Company, a subsidiary of Great American Financial Resources, Inc. B1096013NW Safe Return a fixed-indexed annuity from Great American Life Insurance Company, a subsidiary of Great American Financial Resources, Inc. A great American icon: Old Faithful Geyser in Yellowstone

More information

Fixed index universal life insurance

Fixed index universal life insurance Allianz Life Insurance Company of North America Fixed index universal life insurance Are your clients worried about the cost of college? P For financial professional use only. Not for use with the public.

More information

Preparing for Your Retirement: The Role of Life Insurance in Retirement Planning

Preparing for Your Retirement: The Role of Life Insurance in Retirement Planning Preparing for Your Retirement: The Role of Life Insurance in Retirement Planning Did you know that cash value life insurance is the only financial product with the flexibility to provide benefits if you

More information

The Flexibility of Cash Value Life Insurance

The Flexibility of Cash Value Life Insurance Advanced Markets The Flexibility of Cash Value Life Insurance Beyond Protection With today s focus on value and flexibility, cash value life insurance comes into its own. Beyond its main purpose of death

More information

Code means the Internal Revenue Code of 1986, as amended.

Code means the Internal Revenue Code of 1986, as amended. The American Funds Roth IRA Trust Agreement Pending IRS approval. Section 1 Definitions As used in this trust agreement ( Agreement ) and the related Application, the following terms shall have the meaning

More information

THE KUGLER SYSTEM -- VOLUME 1 A SUMMARY OF LIFE INSURANCE PRODUCTS TABLE OF CONTENTS

THE KUGLER SYSTEM -- VOLUME 1 A SUMMARY OF LIFE INSURANCE PRODUCTS TABLE OF CONTENTS THE KUGLER SYSTEM -- VOLUME 1 A SUMMARY OF LIFE INSURANCE PRODUCTS TABLE OF CONTENTS Introduction Assumptions Used in This Text Chapter I: Basic Forms of Term Insurance Annual Renewable Term Insurance

More information

A GUIDE TO HOME EQUITY LINES OF CREDIT. Call or visit one of our offices today to see what products in this guide we have to offer you!

A GUIDE TO HOME EQUITY LINES OF CREDIT. Call or visit one of our offices today to see what products in this guide we have to offer you! A GUIDE TO HOME EQUITY LINES OF CREDIT Call or visit one of our offices today to see what products in this guide we have to offer you! TABLE OF CONTENTS Introduction What is a home equity line of credit

More information

Understanding Your Life Insurance Options

Understanding Your Life Insurance Options Understanding Your Life Insurance Options Designed for: Client Designed by: Bernie Geiss, TEP, FEA, CLU, CFP Cove Continuity Advisors Inc. Life Insurance: An Integral Part of Most Financial Plans The primary

More information

FREE LIFE INSURANCE PRACTICE EXAM

FREE LIFE INSURANCE PRACTICE EXAM FREE LIFE INSURANCE PRACTICE EXAM We offer an online video L&H exam prep course that includes over 10 hours of instruction. Our full pdf study manual and over 600 questions are also included. Please go

More information

Small Business Planning. Split Dollar Plans Using Life Insurance. What s the prescription for a successful workforce?

Small Business Planning. Split Dollar Plans Using Life Insurance. What s the prescription for a successful workforce? Small Business Planning Split Dollar Plans Using Life Insurance What s the prescription for a successful workforce? 2 Add life to your business You finally have the staff you ve always wanted for your

More information

Advantage Builder II ABOUT AVIVA. Consumer product guide

Advantage Builder II ABOUT AVIVA. Consumer product guide ABOUT AVIVA Aviva Life and Annuity Company is part of Aviva USA, one of the fastest-growing life insurers in the United States, with more than 1,115,000 customers and 32,850 agents and distributors. We

More information

STRUCTURES 101. History 101

STRUCTURES 101. History 101 STRUCTURES 101 History 101 1918 IRS enacted section 104(a)(2) of the Internal Revenue Code bodily injury claims are free of taxation. 1983 Periodic Payment Act of 1983 encourages the use of structured

More information

Premium Finance Programs

Premium Finance Programs Marketing Guide Life Insurance Premium Finance Programs Information and Guidelines FOR BROKER-DEALER OR AGENT USE ONLY LBL8190 Providing the life insurance coverage your customers need. Help your customers

More information

Business Life Insurance Strategies Guide

Business Life Insurance Strategies Guide Business Life Insurance Strategies Guide Nationwide Business Solutions Group In this guide, Nationwide assumes that universal or variable universal life insurance is used for each of the strategies, unless

More information

White Paper: Using Cash Value Life Insurance for Retirement Savings

White Paper: Using Cash Value Life Insurance for Retirement Savings White Paper: Using Cash Value Life Insurance for Retirement Savings www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member

More information

Small Business Planning. Insurance-based Retirement Plan. What will your retirement look like?

Small Business Planning. Insurance-based Retirement Plan. What will your retirement look like? Small Business Planning Insurance-based Retirement Plan What will your retirement look like? 2 Add life to your business You ve planned, saved, worked and invested, but you re still not sure you ll have

More information

Flexible Premium Adjustable Life Insurance Policy Illustration

Flexible Premium Adjustable Life Insurance Policy Illustration Flexible Premium Adjustable Life Insurance Policy Illustration Prepared for: d Client Prepared by: Sample Sample MetLife 11225 N Community House Rd Charlotte, North Carolina, 28202 Tel: 5555555555 MetLife

More information

Is Account Receivables Your Largest Asset? Unleash the Hidden Values A/R Insurance Can Deliver to Your Company. Presented by Glenn Robins

Is Account Receivables Your Largest Asset? Unleash the Hidden Values A/R Insurance Can Deliver to Your Company. Presented by Glenn Robins Is Account Receivables Your Largest Asset? Unleash the Hidden Values A/R Insurance Can Deliver to Your Company Presented by Glenn Robins US Companies Profile On Insuring Assets Compare Balance Sheet Assets

More information

A guide to buying insurance from Wells Fargo Advisors

A guide to buying insurance from Wells Fargo Advisors A guide to buying insurance from Wells Fargo Advisors What you should know before you buy Is life insurance right for you? Life insurance policies are designed for investors who: Seek liquidity to cover

More information

Program Highlights & Fact Finder

Program Highlights & Fact Finder Executive Bonus Plan Program Highlights & Fact Finder A Rewarding Way to Retain Key Executives Executive Bonus Plans can be an effective way to reward selected employees or owners while providing tax deductions

More information

Asset Creation Planning

Asset Creation Planning Asset Creation Planning Innovative Solutions For Seniors Now Seniors have the opportunity to improve their financial situation through the creation of a Life Insurance Asset, often without any out of pocket

More information

CHAPTER 8 TAX CONSIDERATIONS

CHAPTER 8 TAX CONSIDERATIONS CHAPTER 8 TAX CONSIDERATIONS Life insurance traditionally has enjoyed favorable tax treatment. The major advantages are (1) the death benefits of a life policy payable to a beneficiary are not subject

More information

Advanced Markets Success Strategy Life Insurance in Retirement Planning Plus

Advanced Markets Success Strategy Life Insurance in Retirement Planning Plus Success Strategy Life Insurance in Retirement Planning Plus Life insurance protection is the foundation of a family s future, providing cash to: replace income for surviving family, pay off family debt,

More information

Business Planning. Buy/Sell Insurance. What would your business do without you?

Business Planning. Buy/Sell Insurance. What would your business do without you? Business Planning Buy/Sell Insurance What would your business do without you? 2 Add life to your business You know what it takes to run a successful company. But what would happen to your business if something

More information

Using Cash Value Life Insurance for Retirement Savings

Using Cash Value Life Insurance for Retirement Savings American Brokerage Services, Inc. 805 E Willow Grove Ave. Suite 2-B Wyndmoor, PA 1-888-227-3131 500 annuities1@absgo.com www.absgo.com Using Cash Value Life Insurance for Retirement Savings American Brokerage

More information

Estate planning strategies using life insurance in a trust Options for handling distributions, rollovers and conversions

Estate planning strategies using life insurance in a trust Options for handling distributions, rollovers and conversions Estate planning strategies using life insurance in a trust Options for handling distributions, rollovers and conversions Life s better when we re connected Table of contents Find your questions review

More information

Life Insurance in Qualified Defined Contribution Plans

Life Insurance in Qualified Defined Contribution Plans ARTICLE 30 Life Insurance in Qualified Defined Contribution Plans By Elizabeth A. LaCombe At first blush, offering life insurance in a qualified defined contribution plan sounds like a cost efficient way

More information

Spousal Lifetime Access Trust Using Legacy Advantage SUL Insurance Policy

Spousal Lifetime Access Trust Using Legacy Advantage SUL Insurance Policy Spousal Lifetime Access Trust Using Insurance Policy Supplemental Illustration Valued Client & Valued Client Prepared by: MetLife Agent 2 Park Ave. New York, NY 1166 Insurance Products: Not A Deposit Not

More information

A Story of Guarantees and Financial Versatility

A Story of Guarantees and Financial Versatility A Story of Guarantees and Financial Versatility Whole Life Insurance A Consumer Brochure for Whole Life Understanding Introduction Whole life is a versatile financial product that provides unique benefits

More information

Nationwide YourLife Survivorship VUL. Product guide. Everyone could use a little balance

Nationwide YourLife Survivorship VUL. Product guide. Everyone could use a little balance Nationwide YourLife Survivorship VUL Product guide Everyone could use a little balance Balance protection and growth potential You like the idea of leaving your family a legacy one day. If you have your

More information

Leveraged Life Insurance Personal Ownership

Leveraged Life Insurance Personal Ownership Leveraged Life Insurance Personal Ownership Introduction Leveraged life insurance is a financial planning strategy that uses the cash value of an exempt life insurance policy as collateral security for

More information

Nationwide Insurance-based Retirement Plan. What will your retirement look like?

Nationwide Insurance-based Retirement Plan. What will your retirement look like? Nationwide Insurance-based Retirement Plan What will your retirement look like? Add life to your business You ve planned, saved, worked and invested, but you re still not sure you ll have enough money

More information

OPTION SELECT ROTH IRA DISCLOSURE STATEMENT

OPTION SELECT ROTH IRA DISCLOSURE STATEMENT OPTION SELECT ROTH IRA DISCLOSURE STATEMENT Group Policy Form No. 01-1115-98 Group Certificate Form No. 01-1115C-98 and state variations thereof. Not for use in Florida. Regarding Roth Individual Retirement

More information

Step 1: Data Gathering Personal Factors John and Mary Client are both age 55

Step 1: Data Gathering Personal Factors John and Mary Client are both age 55 Step 1: Data Gathering Personal Factors John and Mary Client are both age 55 The Clients have three children: Junior, age 30; Anne, age 27, Carol, age24. All three children are married and have their own

More information

The owner is usually the purchaser of the policy. However, the owner may also acquire the policy by gift, sale, exchange, or bequest.

The owner is usually the purchaser of the policy. However, the owner may also acquire the policy by gift, sale, exchange, or bequest. Annuity Ownership Considerations What is an annuity owner? What are the owner's rights? Who should be the owner? What if the owner dies? Is the annuity includable in the owner's estate? What risks does

More information

Prepared For: The Client Family

Prepared For: The Client Family Annuity Maximization Estate Planning and Deferred Annuities - Annuitization Prepared For: The Client Family Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA and

More information

Take a step in the right direction. Protect your family and plan for the future with life insurance. Nationwide YourLife Current Assumption UL

Take a step in the right direction. Protect your family and plan for the future with life insurance. Nationwide YourLife Current Assumption UL Nationwide YourLife Current Assumption UL Client guide Take a step in the right direction. Protect your family and plan for the future with life insurance. Nothing says security like knowing you and your

More information

Chapter16. Managing Short-Term Liabilities (Financing)

Chapter16. Managing Short-Term Liabilities (Financing) Chapter16 Managing Short-Term Liabilities (Financing) 1 Learning Outcomes Chapter 16 Describe the characteristics of the various sources of short-term credit, including Accruals trade credit bank loans

More information

National Association of. Professionals Presents: The Power of Leverage

National Association of. Professionals Presents: The Power of Leverage National Association of Accredited Advanced Insurance Markets Professionals Presents: The Power of Leverage David Gordon Vice President NAAIP Tel: (800)770-0492 Email: david (at) naaip.org I. Introduction

More information

Ex e c u t i ve Bo n u s Pl a n

Ex e c u t i ve Bo n u s Pl a n Ex e c u t i ve Bo n u s Pl a n Program Highlights & Fact Finder A Rewarding Way to Retain Key Executives In today s highly competitive business landscape, it is increasingly difficult to attract and retain

More information

Flexible protection to help meet a lifetime of needs

Flexible protection to help meet a lifetime of needs TIAA-CREF Life Insurance Company Flexible protection to help meet a lifetime of needs Intelligent Life Universal Life Insurance and Intelligent Life Survivorship Universal Life Insurance Designed to meet

More information

401(k) Overlay Executive Benefit Plan. A Customized Life Insurance Strategy to Help Recruit, Retain and Reward Key Executives

401(k) Overlay Executive Benefit Plan. A Customized Life Insurance Strategy to Help Recruit, Retain and Reward Key Executives INDIVIDUAL LIFE INSURANCE 401(k) Overlay Executive Benefit Plan A Customized Life Insurance Strategy to Help Recruit, Retain and Reward Key Executives INSURANCE PRODUCTS: NOT INSURED BY FDIC OR ANY FEDERAL

More information

Make an informed choice

Make an informed choice Producer Information I Index Universal Life Insurance Make an informed choice Long Term Care or Chronic Illness Rider? As our population ages, obtaining financial protection against long term care (LTC)

More information

What s the blueprint for keeping good employees?

What s the blueprint for keeping good employees? Small Business Planning Executive Bonus Plan Using Life Insurance Restrictive Executive Bonus Arrangement (REBA) Using Life Insurance What s the blueprint for keeping good employees? 2 Add life to your

More information

Recourse vs. Nonrecourse: Commercial Real Estate Financing Which One is Right for You?

Recourse vs. Nonrecourse: Commercial Real Estate Financing Which One is Right for You? Recourse vs. Nonrecourse: Commercial Real Estate Financing Which One is Right for You? Prepared by Bill White Director of Commercial Real Estate Lending In this white paper 1 Commercial real estate lenders

More information

PHOENIX JOINT ADVANTAGE UL

PHOENIX JOINT ADVANTAGE UL PHOENIX JOINT ADVANTAGE UL SM A dual coverage policy that pays a death benefit on the first death, featuring flexible premiums and cash accumulation Phoenix helps people with diverse financial needs find

More information

Hundreds of thousands from a forgotten document just laying around your home?

Hundreds of thousands from a forgotten document just laying around your home? Hundreds of thousands from a forgotten document just laying around your home? Somewhere in your house there could be a forgotten document. This document could be worth a lot of money. This document is

More information

Payouts. Protection. In One Place.

Payouts. Protection. In One Place. Payouts. Protection. In One Place. ING Single Premium Immediate Annuity issued by ING USA Annuity and Life Insurance Company Your future. Made easier. Payouts. Protection. In today s financial world, some

More information

Lincoln life insurance portfolio at-a-glance

Lincoln life insurance portfolio at-a-glance Tax-efficiency Guarantees Protection life insurance portfolio at-a-glance Cash flow Growth potential Estate planning Business protection The National Life Insurance Company Not a deposit Not FDIC-insured

More information

Understanding the Income Taxation of Life Insurance

Understanding the Income Taxation of Life Insurance A Reference Guide for Individuals and Businesses Understanding the Income Taxation of Life Insurance Answers to Frequently Asked Questions Tax Insights Contents 1 General Questions 4 Non-MEC Policy Questions

More information

Life Insurance in Retirement Planning

Life Insurance in Retirement Planning Life Insurance in Retirement Planning HOW PERMANENT LIFE INSURANCE CAN HELP MEET YOUR DEATH BENEFIT NEEDS AND ENHANCE YOUR RETIREMENT. 0251133-00002-00 Did You Know? Many high-income and high-net worth

More information

looking to protect your business client s most valued assets?

looking to protect your business client s most valued assets? Advanced Markets key person producer guide looking to protect your business client s most valued assets? business owned life insurance Life Insurance: Is Not a Deposit of Any Bank Is Not FDIC Insured Is

More information

Personal retirement account A retirement savings strategy. Show clients a tax-preferred solution to enhance retirement income

Personal retirement account A retirement savings strategy. Show clients a tax-preferred solution to enhance retirement income Personal retirement account A retirement savings strategy using PARTICIPATING life insurance Show clients a tax-preferred solution to enhance retirement income 2 Personal retirement account Here s the

More information

AG Secure Survivor GUL II. Powerful guarantees and flexibility. Help them guarantee a legacy with Optionality. Producer Guide

AG Secure Survivor GUL II. Powerful guarantees and flexibility. Help them guarantee a legacy with Optionality. Producer Guide Producer Guide Powerful guarantees and flexibility Help them guarantee a legacy with Optionality AG Secure Survivor GUL II Individual joint and last survivor flexible premium, universal life insurance

More information

FI 341 Principles of Risk Management & Insurance Review for Exam 3 Chapters 11, 12, 13, 14

FI 341 Principles of Risk Management & Insurance Review for Exam 3 Chapters 11, 12, 13, 14 FI 341 Principles of Risk Management & Insurance Review for Exam 3 Chapters 11, 12, 13, 14 * It is important for you to know all the Key Concepts and Terms for every Chapter. Chapter 11 Life Insurance

More information

Help your clients take a step toward a stronger financial future.

Help your clients take a step toward a stronger financial future. Nationwide YourLife Current Assumption UL Sales guide Help your clients take a step toward a stronger financial future. Reasonably priced permanent life insurance with the potential for growth. FOR INSURANCE

More information

Payouts. Protection. In One Place.

Payouts. Protection. In One Place. Payouts. Protection. In One Place. ING Single Premium Immediate Annuity ANNUITIES Your future. Made easier. Payouts. Protection. In today s financial world, some products provide payout options. Others

More information