First to Die (Joint Life)

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "First to Die (Joint Life)"

Transcription

1 WD & Associates WILLIAM DELMAGE President 22 Hemingway Drive East Providence, RI (401) First to Die (Joint Life)

2 WD & Associates Page 2 First to Die (Joint Life) What is a joint life first-to-die policy? A joint life first-to-die life insurance policy insures more than one life under one insurance contract. While a joint life policy can cover an unlimited number of lives, insurance companies usually limit the number of people covered. The death benefit is paid at the first death. After the first death, coverage would cease unless a guaranteed insurability rider was purchased with the policy. When can it be used? A joint life first-to-die policy may be appropriate when the proceeds are most needed at the first death. Working couples Joint life first-to-die policies can be used to cover a two-income husband and wife. The policy would provide a benefit to replace the loss of income from the death of the first spouse or to fund a goal or objective that would depend on the presence of both incomes, such as repayment of a mortgage or payment for a child's college education. Often, a joint life first-to-die policy is used along with a second-to-die (survivorship) life insurance policy. Business use Buy-sell agreement funding--when used to fund a buy-sell agreement, a joint life first-to-die policy can guarantee that funds are available for the buyout, regardless of which party dies first, while also reducing premium costs. Riders can be purchased with the policy to allow continued coverage for the surviving business owners. Key person protection--joint life first-to-die policies can be used to cover a selected group of key employees so that at the loss of any one employee, the company will receive insurance proceeds that can be used to find, recruit, and train a replacement employee. A joint life policy can be significantly easier to manage and more cost-efficient than separate policies on all key employees. Some insurers have started selling joint life policies designed specifically for these types of business use. Strengths Joint life policy can provide higher death benefit for same premium than multiple individual policies with same face amount A joint life policy can provide a higher death benefit than possible under multiple individual policies. Example(s): A joint life policy covering two lives with a death benefit of $500,000 would be less expensive than two individual policies, each with a death benefit of $500,000. Coverage offered in variety of forms Joint life first-to-die policies are generally offered in many forms, including term life, whole life, current assumption whole life, or universal life. Of these options, term life is perhaps the least commonly used form, as separate term policies on each life would probably cost about the same amount and would not provide the benefit of continued insurance coverage for the survivor(s).

3 WD & Associates Page 3 Coverage can generally be continued after first death--see Tradeoffs A joint life first-to-die policy can generally be continued after the first death occurs. When the original policy covered a married couple, the surviving spouse may be able to buy an individual policy. If the original coverage was for more than two people, generally another first-to-die policy can be purchased. Caution: It is possible that the survivor may have become uninsurable since the original policy was taken out, which could make it difficult or impossible to get continued coverage. Tip: When considering a joint life first-to-die policy, look for one with a guaranteed insurability rider. This rider allows the surviving insured to buy additional coverage even if they have become uninsurable since the original policy was issued. Tradeoffs IRS may try to include proceeds in estate of first to die Due to the joint ownership of the policy, the insured parties always hold incidents of ownership in the policy. The IRS could try to include the policy proceeds in the estate of the first person to die even though the estate does not receive the proceeds. However, if the proceeds are payable to the surviving spouse, they should qualify for the unlimited marital deduction. Original policy terminates after first death After the first death occurs and the death benefit is paid, the policy terminates. The survivor(s) could be left without insurance and may have become uninsurable. When coverage continued for survivor, premiums may be higher If continued insurance coverage is allowed for the survivor under a joint life policy, the premiums are based on that person's attained age, not the person's age when the original policy was issued. Premiums become more expensive with age, so continued coverage might be prohibitively expensive. How to do it Determine your life insurance need and overall financial goals Before you buy life insurance, you need to know how much insurance you need. Insurance need is based on numerous factors, including your current age and income, marital status, number of incomes in the household, number of dependents, long-term financial goals, level of outstanding debt, and existing insurance and other assets. Your overall financial, estate, and tax-planning goals and your planning horizon should be considered as part of your insurance need evaluation. Tip: Consult with your financial advisor concerning your need for insurance. Some of the calculations can be complicated. Complete the insurance application and name your beneficiary Before the insurance company can issue your policy, it must receive a completed application form. The application includes general health questions, and the process may include a physical examination, which is usually paid for by the insurance company. A critical part of the application is the beneficiary designation--the naming of the person or persons to receive the policy proceeds when you die. Unless you make an irrevocable beneficiary designation, you can change the beneficiary designation by adding or removing a beneficiary or by changing the percentages of the proceeds distribution.

4 WD & Associates Page 4 Buy the policy and pay your premium It is all well and good to know how much insurance and what type of policy is appropriate for your particular situation. But if you don't actually buy the policy, you haven't accomplished your goal! Not only that, but insurance becomes more expensive with age, so you won't be doing your wallet any favors by delaying. An additional risk of delaying is that your health could change adversely. In other words, just because you are healthy and insurable today doesn't mean you will be that way later. Deterioration in your health can mean higher premiums or an insurer considering you to be uninsurable. Review your insurance need periodically The amount of life insurance you need may change over time and with the occurrence of lifetime events. As a result, you should periodically review your life insurance coverage. As a rule, you should review your coverage every three years. Major lifetime events (such as the purchase of a home, birth or adoption of a child, marriage, or divorce) are also appropriate times to review your coverage. By routinely checking your insurance need, you can prevent the mistake you can't fix after you die: not having enough life insurance. Tax considerations Income Tax Premium payments not deductible Life insurance premium payments are generally not tax-deductible expenses. Cash withdrawals may not be taxable Life insurance policy cash value withdrawals are considered a nontaxable recovery of your policy basis until the entire policy basis has been withdrawn. Example(s): You own a life insurance policy with a cash value of $15,000. Your basis in the policy equals $12,500. You plan to take a withdrawal of $7,000 now to pay for part of your son's tuition. You won't have to pay tax on this withdrawal amount because it will be considered a return of your basis. Balances before Withdrawal Withdrawal Amounts Cash Value $15,000 - $7,000 $8,000 Balances after Withdrawal Your Basis $12,500 - $7,000 $5,500 $0 Withdrawal Subject to Tax Caution: Withdrawals in excess of your basis are treated as taxable distributions of interest or gain. Caution: Cash value withdrawals that occur in the first 15 years of the policy and are accompanied by a reduction in the death benefit may be treated as first coming from interest. Policy loan proceeds generally not taxable When you take out a loan against your life insurance policy (except a policy classified as a modified endowment contract, or MEC), the amount you receive is not considered taxable income. This rule applies even when the loan is larger than the amount of premiums you have paid in.

5 WD & Associates Page 5 Example(s): You own a life insurance policy (not an MEC) with a cash value of $20,000. Your basis in the policy is $14,000. You decide to take a policy loan to pay your daughter's college tuition. Under the terms of your policy, you are allowed to take a loan for an amount up to 90 percent of the policy cash value--in this case, $18,000 ($20,000 x.90). You are not currently subject to tax on the amount of the loan, even though the loan is larger than your basis. Caution: If you cancel your policy while there is a loan balance outstanding, you could be subject to income tax on the amount of the loan that exceeds the investment or basis in the contract (plus any accrued but unpaid interest). Policy loan interest not deductible Inerest you pay on a policy loan is generally not a tax-deductible expense (under certain circumstances, interest on loans used for business or investment purposes may be deductible). Policy cancellation may be taxable If you cancel (surrender) your policy for cash, the gain on the policy is subject to federal income tax. The gain on a canceled policy is the difference between the net cash value and loan forgiveness amounts and your policy basis. Caution: You may be subject to surrender charges. Check your policy. Caution: Policy fees and expenses are usually charged against the policy in the first few years. As a result, policy surrenders during the first few years of the policy may provide little cash value. Caution: If you surrender your policy while there is a loan balance outstanding, you could be subject to income tax on the amount of the loan that exceeds the investment or basis in the contract (plus any accrued but unpaid interest). Policy lapse may be taxable If you allow your policy to lapse, you could be subject to income tax even if you don't receive any cash from the policy. A policy lapse can occur when you stop paying premiums and don't have cash values available that can be used to pay the premiums. If you have an outstanding policy loan, it is possible you could be subject to tax on the amount of the loan plus any accrued but unpaid interest. Death benefits generally not subject to federal income tax Policy death benefits are generally not subject to federal income tax. One notable exception is when the policy has been sold by one policyowner to another, subjecting it to the transfer-for-value rule. Gift Tax Policy proceeds not considered gift to beneficiary When the proceeds of your life insurance policy are paid to a beneficiary, they are not treated as a gift for gift tax purposes. Policy premium payments generally not subject to gift tax When you are the owner of a policy on your own life, with another party as the beneficiary, premium payments made by you are not considered a gift to the beneficiary for gift tax purposes. If, however, someone else pays the premiums on a policy you own, the premium payments are considered a gift to you and may be subject to gift tax. However, policy premiums generally qualify for the annual gift tax exclusion.

6 WD & Associates Page 6 Estate Tax Policy proceeds included in estate value in some cases The proceeds of a life insurance policy are included in the value of your estate if you held any incidents of ownership at any time during the three years before your death or if the proceeds are payable to you or your estate or executor. Incidents of ownership include (among other things) the right to change the beneficiary, take out policy loans, or surrender the policy for cash. If you are an owner on the joint life first-to-die policy, it is possible that the IRS may try to have the value of the death proceeds included in the value of your estate. However, proceeds payable to a surviving spouse qualify for the estate tax unlimited marital deduction. In the case of a jointly covered unmarried couple, the proceeds would be included in the estate of the first to die, and the unlimited marital deduction is not available. Policy proceeds often exempt from state inheritance tax In many states, life insurance proceeds are exempt from state inheritance taxes.

7 Page 7 WD & Associates WILLIAM DELMAGE President 22 Hemingway Drive East Providence, RI (401) Forefield Inc. does not provide legal, tax, or investment advice. All content provided by Forefield is protected by copyright. Forefield is not responsible for any modifications made to its materials, or for the accuracy of information provided by other sources. Prepared by Forefield Inc. Copyright 2010 Forefield Inc.

First to Die (Joint Life)

First to Die (Joint Life) First to Die (Joint Life) What is a joint life first-to-die policy? A joint life first-to-die life insurance policy insures more than one life under one insurance contract. While a joint life policy can

More information

Second to Die (Survivorship)

Second to Die (Survivorship) WD & Associates WILLIAM DELMAGE President 22 Hemingway Drive East Providence, RI 02915 (401) 435-4239 103 wmd@wdandassociates.com www.wdandassociates.com Second to Die (Survivorship) WD & Associates Page

More information

You have a long-term cash accumulation need (10 to 15 years)

You have a long-term cash accumulation need (10 to 15 years) Universal Life What is it? Permanent (cash value life) insurance with flexible premiums Universal life is a form of permanent (cash value) insurance. Your cash value receives a guaranteed minimum interest

More information

Like all other permanent (cash value) policies, a whole life policy contains the following features:

Like all other permanent (cash value) policies, a whole life policy contains the following features: Whole Life What is it? Permanent (cash value) life insurance Whole life insurance is called permanent protection, meaning the coverage (and possibly the premiums) lasts for your entire (whole) life, as

More information

Variable Universal Life (VUL)

Variable Universal Life (VUL) Variable Universal Life (VUL) What is it? Permanent (cash value) life insurance with maximum flexibility Variable universal life (VUL) is considered the most flexible type of permanent (cash value) life

More information

Types of Life Insurance Products

Types of Life Insurance Products Types of Life Insurance Products Page 1 of 16, see disclaimer on final page Table of Contents Term Life Insurance...3 Who should buy term life insurance?...3 Advantages of term life insurance... 3 Disadvantages

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

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

Claiming Life Insurance Benefits

Claiming Life Insurance Benefits WD & Associates WILLIAM DELMAGE President 22 Hemingway Drive East Providence, RI 02915 (401) 435-4239 103 wmd@wdandassociates.com www.wdandassociates.com Claiming Life Insurance Benefits WD & Associates

More information

Understanding Life Insurance: A Lesson in Life Insurance

Understanding Life Insurance: A Lesson in Life Insurance Understanding Life Insurance: A Lesson in Life Insurance If something happens to you, how will your family replace your earning power? Table of Contents Page Your Earning Power 2 Life Insurance Questions

More information

THE CONSTRUCTION OF A SURVIVORSHIP LIFE INSURANCE POLICY

THE CONSTRUCTION OF A SURVIVORSHIP LIFE INSURANCE POLICY THE CONSTRUCTION OF A SURVIVORSHIP LIFE INSURANCE POLICY PERTINENT INFORMATION Mr. and Mrs. Kugler are considering $1,000,000 of life insurance to provide estate liquidity at the survivor s death to cover

More information

Understanding Life Insurance: A Lesson in Life Insurance

Understanding Life Insurance: A Lesson in Life Insurance Understanding Life : A Lesson in Life If something happens to you, how will your family replace your earning power? Table of Contents Page Your Earning Power 2 Life Questions 3 Types of Term 4 Term Variations

More information

Understanding Life Insurance

Understanding Life Insurance Understanding Life Insurance A Lesson in Traditional and Indexed Life Insurance 2012 VSA, LP Valid only if used prior to January 1, 2013. The information, general principles and conclusions presented in

More information

Understanding Life Insurance: A Lesson in Life Insurance

Understanding Life Insurance: A Lesson in Life Insurance Understanding Life : A Lesson in Life If something happens to you, how will your family replace your earning power? Table of Contents Page Your Earning Power 2 Life Questions 3 Types of Term 4 Term Variations

More information

Income, Gift, And Estate Tax Planning With Life Insurance. Farhad Aghdami Williams Mullen Richmond, Virginia

Income, Gift, And Estate Tax Planning With Life Insurance. Farhad Aghdami Williams Mullen Richmond, Virginia Income, Gift, And Estate Tax Planning With Life Insurance Farhad Aghdami Williams Mullen Richmond, Virginia Income, Gift, And Estate Tax Planning With Life Insurance Farhad Aghdami Williams, Mullen, Clark

More information

Funding Your Buy-Sell Agreement with Life Insurance

Funding Your Buy-Sell Agreement with Life Insurance Element Insurance Partners 13520 California Street Suite 290 Omaha, NE 68154 402-614-2661 dhenry@elementinsurancepartners.com www.elementinsurancepartners.com Funding Your Buy-Sell Agreement with Life

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

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

Family Business Succession Planning

Family Business Succession Planning WILLIAM DELMAGE President 22 Hemingway Drive East Providence, RI 02915 (401) 435-4239 103 wmd@wdandassociates.com www.wdandassociates.com Family Business Succession Planning Page 2 of 9 Transferring Your

More information

Life Insurance and Estate Tax

Life Insurance and Estate Tax WILLIAM DELMAGE President 22 Hemingway Drive East Providence, RI 02915 (401) 435-4239 103 wmd@wdandassociates.com www.wdandassociates.com Life Insurance and Estate Tax Page 2 of 7 Life Insurance and Estate

More information

Life Insurance. The Benefits of Protection and Preparation

Life Insurance. The Benefits of Protection and Preparation Life Insurance The Benefits of Protection and Preparation life insurance,in all its varied forms, is quite simply a method for handling financial risk in the event of death. Instead of trying to amass

More information

Caring for longer than a lifetime

Caring for longer than a lifetime Life insurance Caring for longer than a lifetime Your 5-minute Guide Life goes on prepare for it Your love for your family will live forever. However, we all know we won t live forever. Life insurance

More information

Insurance. Survivorship Life. Insurance. The Company You Keep

Insurance. Survivorship Life. Insurance. The Company You Keep Insurance Survivorship Life Insurance The Company You Keep Permanent Life Insurance Protection for Two People You ve built a legacy, but who will be the recipients your heirs or the IRS? 1 Now is the time

More information

Chapter 10. Life Insurance

Chapter 10. Life Insurance Life Insurance Role of Life Insurance Insurance Program A life insurance program should be an integral part of the overall estate plan. The estate planner should review all of the forest owner s policies,

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

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

Life Insurance Gifts: Planning Considerations

Life Insurance Gifts: Planning Considerations Life Insurance Gifts: Planning Considerations Gifts of life insurance are an additional option for charitable giving. While life insurance is not the answer to every financial planning and estate planning

More information

Irrevocable Life Insurance Trust

Irrevocable Life Insurance Trust Davis & Graves CPA LLP Jerry Davis, CPA/PFS 700 N Main Gresham, OR 97009 503-665-0173 jerryd@davisgraves.com www.jjdcpa.com Irrevocable Life Insurance Trust Page 1 of 9, see disclaimer on final page Irrevocable

More information

Life Insurance and Estate Planning

Life Insurance and Estate Planning EBNY Financial, LLC Kevin Kautzmann, CFP Certified Financial Planner 80 Fifth Avenue #1403 New York, NY 212-269-2625 kevin@ebnyfinancial.com www.ebnyfinancial.com Life Insurance and Estate Planning Page

More information

Business Uses of Life Insurance

Business Uses of Life Insurance Select Portfolio Management, Inc. David M. Jones, MBA Wealth Advisor 120 Vantis, Suite 430 Aliso Viejo, CA 92656 949-975-7900 dave.jones@selectportfolio.com www.selectportfolio.com Business Uses of Life

More information

Advanced Markets Estate Planning for Non-Citizens in the United States

Advanced Markets Estate Planning for Non-Citizens in the United States Estate Planning for Non-Citizens in the United States SINGLE LIFE SPOUSAL ACCESS TRUSTS: A LIFE INSURANCE ALTERNATIVE As large numbers of people from other countries settle in the United States (U.S.),

More information

IRREVOCABLE LIFE INSURANCE TRUSTS FOR ESTATE AND TAX PLANNING (Estate Planning Advisory No. 1)

IRREVOCABLE LIFE INSURANCE TRUSTS FOR ESTATE AND TAX PLANNING (Estate Planning Advisory No. 1) IRREVOCABLE LIFE INSURANCE TRUSTS FOR ESTATE AND TAX PLANNING (Estate Planning Advisory No. 1) This Advisory discusses the general estate planning and asset protection benefits of an irrevocable life insurance

More information

Life Insurance Review. helping to ensure your life insurance coverage meets today s goals

Life Insurance Review. helping to ensure your life insurance coverage meets today s goals Life Insurance Review helping to ensure your life insurance coverage meets today s goals Life. your way Strive to live your dream and plan for the if in life. Discover the flexibility of life insurance

More information

A Sole Proprietor Insured Buy-Sell Plan

A Sole Proprietor Insured Buy-Sell Plan A Sole Proprietor Insured Buy-Sell Plan At a sole proprietor s death, the business is dissolved and all business assets and liabilities become part of the sole proprietor's personal estate. Have you evaluated

More information

Life Insurance Basics

Life Insurance Basics Next Plateau Consulting LLC Frank Washelesky 455 N. Cityfront Plaza Dr. NBC Tower - Suite 2600 Chicago, IL 60611-5379 312-670-0500 fwashelesky@next-plateau.com www.next-plateau.com Life Insurance Basics

More information

Bypass Trust (also called B Trust or Credit Shelter Trust)

Bypass Trust (also called B Trust or Credit Shelter Trust) Davis & Graves CPA LLP Jerry Davis, CPA/PFS 700 N Main Gresham, OR 97009 503-665-0173 jerryd@davisgraves.com www.jjdcpa.com Bypass Trust (also called B Trust or Credit Shelter Trust) Page 1 of 9, see disclaimer

More information

W3 Wealth Management, LLC Shelby Morgan 90 N. Miller Road Akron, OH 44313 330-836-3805 Shelby@W3wealth.com. Key Employee Insurance

W3 Wealth Management, LLC Shelby Morgan 90 N. Miller Road Akron, OH 44313 330-836-3805 Shelby@W3wealth.com. Key Employee Insurance W3 Wealth Management, LLC Shelby Morgan 90 N. Miller Road Akron, OH 44313 330-836-3805 Shelby@W3wealth.com Key Employee Insurance W3 Wealth Management, LLC Page 2 of 9 Table of Contents Life Insurance

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

BASICS * Irrevocable Life Insurance Trusts

BASICS * Irrevocable Life Insurance Trusts KAREN S. GERSTNER & ASSOCIATES, P.C. 5615 Kirby Drive, Suite 306 Houston, Texas 77005-2448 Telephone (713) 520-5205 Fax (713) 520-5235 www.gerstnerlaw.com BASICS * Irrevocable Life Insurance Trusts Synopsis

More information

Estate Planning. Farm Credit East, ACA Stephen Makarevich

Estate Planning. Farm Credit East, ACA Stephen Makarevich Estate Planning Farm Credit East, ACA Stephen Makarevich Farm Business Consultant 9 County Road 618 Lebanon, NJ 08833 1.800.787.3276 stephen.makarevich@farmcrediteast.com 1 What is Estate Planning? 2 Estate

More information

ADVISING CLIENTS ABOUT LIFE INSURANCE: A PRIMER 1. By Andrew J. Willms, J.D. LL.M. John C. Zimdars, Jr., CLU ChFC. Introduction

ADVISING CLIENTS ABOUT LIFE INSURANCE: A PRIMER 1. By Andrew J. Willms, J.D. LL.M. John C. Zimdars, Jr., CLU ChFC. Introduction ADVISING CLIENTS ABOUT LIFE INSURANCE: A PRIMER 1 By Andrew J. Willms, J.D. LL.M. John C. Zimdars, Jr., CLU ChFC Introduction Over the last several years, tax reform has made tax planning increasingly

More information

Sales Strategy Estate Planning for Non-Citizens in the United States

Sales Strategy Estate Planning for Non-Citizens in the United States Sales Strategy Estate Planning for Non-Citizens in the United States SINGLE LIFE SPOUSAL ACCESS TRUST: A LIFE INSURANCE ALTERNATIVE As large numbers of people from other countries settle in the United

More information

Life Insurance Review. Ensuring life insurance coverage meets today s goals. Life. your way

Life Insurance Review. Ensuring life insurance coverage meets today s goals. Life. your way Life Insurance Review Ensuring life insurance coverage meets today s goals Life. your way SM Life. your way Strive to live your dream and plan for the if in life. Discover the flexibility of life insurance

More information

White Paper Tax Planning with Life Insurance

White Paper Tax Planning with Life Insurance White Paper www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member FINRA, SIPC, MSRB Page 2 Table of Contents... 3 What

More information

Spousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning

Spousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning SALES STRATEGY Guiding you through life. ESTATE PLANNING Spousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning The Concerns Many clients who are concerned about maximizing

More information

Two lives. One legacy. Permanent protection for two people. Nationwide YourLife No-Lapse Guarantee Survivorship Universal Life II.

Two lives. One legacy. Permanent protection for two people. Nationwide YourLife No-Lapse Guarantee Survivorship Universal Life II. Nationwide YourLife No-Lapse Guarantee Survivorship Universal Life II Product overview Two lives. One legacy. Permanent protection for two people. NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY Be sure

More information

Tax Planning with Life Insurance

Tax Planning with Life Insurance Antell & Company Financial Strategies Jim Antell, CLU, ChFC, REBC 150 Bank Street Burlington, VT 05401 802-318-9149 802-318-9148 jim.antell@lpl.com www.antellcompany.com Tax Planning with Life Insurance

More information

Transferring Your Business Interest with a Buy-Sell Agreement

Transferring Your Business Interest with a Buy-Sell Agreement Besselman & Associates Patricia Ann Besselman CFP James M. Besselman, CLU, ChFC 111 Veterans Blvd. Ste. 360 Metairie, LA 70005 504-831-3506 pbesselman@besselmanandassoc.com Transferring Your Business Interest

More information

Maximizing your Pension with Life Insurance

Maximizing your Pension with Life Insurance 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 Maximizing your Pension with Life Insurance Page 2 of 6 Maximizing

More information

Life Insurance Basics

Life Insurance Basics Craig Chapman, CFP Director - Investments 500 108th Avenue NE Suite 2100 Bellevue, WA 98004 425-709-0520 craig.chapman@opco.com http://fa.opco.com/craig.chapman/ Life Insurance Basics Page 2 of 9 Life

More information

20 Ways to Reduce and Effectively Use Insurance Premiums

20 Ways to Reduce and Effectively Use Insurance Premiums Free Review: Compliments of YourBusinessLibrary.com For Your Individual Use Only The Business Library Resource Report #41 20 Ways to Reduce and Effectively Use Insurance Premiums Getting the Most Bang

More information

Estate Planning. And The Second To Die Program. www.infarmbureau.com

Estate Planning. And The Second To Die Program. www.infarmbureau.com Estate Planning And The Second To Die Program www.infarmbureau.com Estate Planning and the Second to Die Program from Indiana Farm Bureau Insurance A source of satisfaction for most married couples is

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

Life Insurance in Estate Planning

Life Insurance in Estate Planning Life Insurance in Estate Planning 1327 South 800 East, Orem Utah 84097 801-226-0800 800-470-9177 www.keelerthomas.com Life Insurance in Estate Planning What is life insurance? Life insurance, sometimes

More information

Life Insurance and Estate Planning for Retirement Plans

Life Insurance and Estate Planning for Retirement Plans Reynolds Financial Group LLC A Registered Investment Advisory Firm 216 Chaucer Drive Irwin, PA 15642 724-863-5005 Phone 724-863-8031 Fax wendyl@reynoldsfinancialgroup.net Life Insurance and Estate Planning

More information

Marital Residence 32D09701224090248

Marital Residence 32D09701224090248 Brian Rockwell, CFP, ChFC, CDFA Associate Vice President, Investments Trinity Town Center 9040 Tryfon Blvd A-104 Trinity, FL 34655 727-372-2530 x:2224 877-486-2183 brian.rockwell@raymondjames.com Website:

More information

The Possibilities of Estate Planning

The Possibilities of Estate Planning The Possibilities of Estate Planning Richard D. Landsberg, JD, LLM, CLU, ChFC, RFC, APM, AIF Direcr Advanced Consulting Group Nationwide Financial Services Some things you need know This presentation was

More information

HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015

HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015 HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015 I. Overview of federal, Connecticut, and New York estate and gift taxes. A. Federal 1. 40% tax rate. 2. Unlimited estate and gift tax

More information

Life Insurance Income Taxation in brief

Life Insurance Income Taxation in brief Life Insurance Income Taxation in brief Income Tax Treatment of Life Insurance Tax deferred growth Tax favored withdrawals Tax free death benefit Tax Deferred Growth Gain due to cash value growth in life

More information

Irrevocable Life Insurance Trust

Irrevocable Life Insurance Trust What exactly is an ILIT? An ILIT, like most trusts, is simply a holding device. It owns your life insurance policy for you, removing it from your estate. As its name suggests, the ILIT is irrevocable.

More information

Your guide to participating life insurance SUN PAR PROTECTOR SUN PAR ACCUMULATOR

Your guide to participating life insurance SUN PAR PROTECTOR SUN PAR ACCUMULATOR Your guide to participating life insurance SUN PAR PROTECTOR SUN PAR ACCUMULATOR Participate in your brighter future with Sun Life Financial. Participating life insurance is a powerful tool that protects

More information

Complimentary Financial Planner

Complimentary Financial Planner Complimentary Financial Planner Creating Wealth Since 1922 PERSONAL INFORMATION Name Social Security Number Date of Birth Home Street Address You Your Spouse City, State, Zip Home Telephone Marital Status

More information

YOUR GUIDE TO YOUR UNITED AMERICAN IRA

YOUR GUIDE TO YOUR UNITED AMERICAN IRA 3700 S. STONEBRIDGE DRIVE POST OFFICE BOX 8080 MCKINNEY, TEXAS 75070-8080 YOUR GUIDE TO YOUR UNITED AMERICAN IRA PLAN CODE: E91 UASA DF PC E91 UAI1422 1209 Your Guide to Your United American IRA This Guide

More information

Life Insurance Review

Life Insurance Review Life Insurance Review A Sales Tool for All Clients Agenda Why a Life Insurance Review Typical Client Situations MetLife Support 1 Why a Life Insurance Review Role of Life Insurance Central in Completion

More information

Annuities. Fixed Annuity: An annuity which the amount paid out is fixed sum and is usually guaranteed.

Annuities. Fixed Annuity: An annuity which the amount paid out is fixed sum and is usually guaranteed. Annuities Fixed Annuity: An annuity which the amount paid out is fixed sum and is usually guaranteed. Loads: The fees or charges paid when you purchase an annuity. Includes sales commissions. Author: Douglas

More information

Life Insurance Review. helping to ensure your life insurance coverage meets today s goals

Life Insurance Review. helping to ensure your life insurance coverage meets today s goals Life Insurance Review helping to ensure your life insurance coverage meets today s goals Life. your way Strive to live your dream and plan for the if in life. Discover the flexibility of life insurance

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

Questions and Answers about Medicaid for Those Receiving Long-Term Care in Idaho

Questions and Answers about Medicaid for Those Receiving Long-Term Care in Idaho Questions and Answers about Medicaid for Those Receiving Long-Term Care in Idaho Question 1: What is Medicaid? Answer: Medicaid is a government program that pays for medical services, including long-term

More information

Claiming Life Insurance Benefits

Claiming Life Insurance Benefits O'Keefe Investment Management, LLC Tom O'Keefe, AIF 1 West Boylston Street Suite LL08 Worcester, MA 01605 508-852-1888 877-852-1889 tpo@okeefeinvest.com www.okeefeinvest.com Claiming Life Insurance Benefits

More information

Divorce and Life Insurance. in brief

Divorce and Life Insurance. in brief Divorce and Life Insurance in brief Divorce and Life Insurance Introduction In a divorce, property is divided between the spouses. In addition, a divorce decree may require that one spouse pay alimony

More information

Succession and Exit Planning Using Life Insurance. June 2011 1 Hour CE MKTG-OC-841A For Insurance Professional Use Only. Not for Use with the Public.

Succession and Exit Planning Using Life Insurance. June 2011 1 Hour CE MKTG-OC-841A For Insurance Professional Use Only. Not for Use with the Public. Succession and Exit Planning Using Life Insurance June 2011 1 Hour CE MKTG-OC-841A Agenda Role of business succession planning in overall business strategy Impact life insurance has on a business Case

More information

Twelve Life Insurance Mistakes They Aren t Cheaper By the Dozen

Twelve Life Insurance Mistakes They Aren t Cheaper By the Dozen ESTATE PLANNING THE PRUDENTIAL LIFE INSURANCE COMPANY OF AMERICA Twelve Life Insurance Mistakes They Aren t Cheaper By the Dozen Life is full of mistakes. They are part of life s learning experiences.

More information

White Paper Life Insurance Policy Provisions

White Paper Life Insurance Policy Provisions White Paper www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member FINRA, SIPC, MSRB Page 2 Table of Contents... 3 What

More information

Individual Joint Life Insurance Product Outline

Individual Joint Life Insurance Product Outline Andrew M. Cuomo Benjamin M. Lawsky Governor Superintendent (including Joint Life First-to-Die Products and Joint Life Survivorship Products) (Last Updated October 29, 2012) Table of Contents I) Scope...

More information

Beneficiary Designations for Life Insurance: Estate Planning

Beneficiary Designations for Life Insurance: Estate Planning Vertex Wealth Management, LLC Michael J. Aluotto, CRPC President Private Wealth Manager 1325 Franklin Ave., Ste. 335 Garden City, NY 11530 516-294-8200 mjaluotto@1stallied.com Beneficiary Designations

More information

Spousal Lifetime Access Trust (SLAT)

Spousal Lifetime Access Trust (SLAT) Spousal Lifetime Access Trust (SLAT) Concept A Spousal Lifetime Access Trust (SLAT) is an irrevocable trust that can own permanent life insurance and/or other assets. A SLAT permits the non-insured spouse

More information

Advanced Designs. Pocket Guide. Private Split-Dollar Life Insurance Designs AD-OC-724B

Advanced Designs. Pocket Guide. Private Split-Dollar Life Insurance Designs AD-OC-724B Advanced Designs Pocket Guide Private Split-Dollar Life Insurance Designs AD-OC-724B This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal,

More information

Social Security Survivor's Benefits and the Lump-Sum Death Benefit

Social Security Survivor's Benefits and the Lump-Sum Death Benefit Milestone Financial Group David Hunt, CFP Financial Advisor 205-B Plaza Drive Greenville, NC 27858 252-756-7005 TF 877.706.7005 dave@milestonefinancialgroup.com Social Security Survivor's Benefits and

More information

Flexible Life Plan Key Features

Flexible Life Plan Key Features Flexible Life Plan Flexible Life Plan Key Features This document shows the main points about your plan. Please read it with your personal illustration and keep it with the other documents relating to your

More information

White Paper Estate Freeze Technique: Private Annuity

White Paper Estate Freeze Technique: Private Annuity White Paper Estate Freeze Technique: Private Annuity www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member FINRA, SIPC,

More information

Life Insurance Review Using Legacy Advantage SUL Insurance Policy

Life Insurance Review Using Legacy Advantage SUL Insurance Policy Using Legacy Advantage SUL Insurance Policy Supplemental Illustration Prepared by: MetLife Agent 200 Park Ave. New York, NY 10166 Insurance Products: Not A Deposit Not FDIC-Insured Not Insured By Any Federal

More information

Estate Tax Concepts. for Edward and Tina Collins

Estate Tax Concepts. for Edward and Tina Collins Estate Tax Concepts for Edward and Tina Collins Joseph Davis, CLU, ChFC 215 Broad Street Charlotte, North Carolina 26292 Phone: 704-927-5555 Mobile Phone: 704-549-5555 Fax: 704-549-6666 Email: joseph.davis@aol.com

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

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

A Technical Guide for Individuals. The Whole Story. Understanding the features and benefits of whole life insurance. Insurance Strategies

A Technical Guide for Individuals. The Whole Story. Understanding the features and benefits of whole life insurance. Insurance Strategies A Technical Guide for Individuals The Whole Story Understanding the features and benefits of whole life insurance Insurance Strategies Contents 1 Insurance for Your Lifetime 3 How Does Whole Life Insurance

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

Funding Options. Life Insurance:

Funding Options. Life Insurance: Living Trusts There are several disadvantages of wills. Wills go through probate and probate can be expensive. It can cause lengthy delays in the distribution of property to your heirs. Your will is open

More information

London Life term life insurance

London Life term life insurance Your guide to London Life term life insurance C o v e r a g e t h a t c a n c h a n g e w i t h y o u Term life insurance from London Life London Life term life insurance enables you to buy the protection

More information

An Introduction to Life Insurance

An Introduction to Life Insurance Manning & Napier Advisors, LLC An Introduction to Life Insurance May 2011 Approved CAG-CM PUB022-R (10/11) Table of Contents Introduction... 1 Assessment... 1 Policy Types... 3 Special Provisions & Riders...

More information

Harry's Goals and Objectives: After meeting with his team of advisors, Harry has defined his goals and objectives as: From Randall Fisher

Harry's Goals and Objectives: After meeting with his team of advisors, Harry has defined his goals and objectives as: From Randall Fisher Transferring Business Interests to Family Members: Sale of Non- Voting Stock Interests to Grantor Dynasty Trusts Volume 5, Issue 9 Some of my clients have family-owned or closely held business interests

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

LIFE INSURANCE BASICS FOR LEGAL AND TAX PROFESSIONALS CPAs Attorneys Enrolled Agents Tax Professionals

LIFE INSURANCE BASICS FOR LEGAL AND TAX PROFESSIONALS CPAs Attorneys Enrolled Agents Tax Professionals LIFE INSURANCE BASICS FOR LEGAL AND TAX PROFESSIONALS CPAs Attorneys Enrolled Agents Tax Professionals Professional Education Network TM CONTENTS 1 Introduction 2 Basics of Life Insurance 3 Insurance Planning

More information

LIFE INSURANCE BASICS FOR LEGAL AND TAX PROFESSIONALS CPAs Attorneys Enrolled Agents Tax Professionals

LIFE INSURANCE BASICS FOR LEGAL AND TAX PROFESSIONALS CPAs Attorneys Enrolled Agents Tax Professionals LIFE INSURANCE BASICS FOR LEGAL AND TAX PROFESSIONALS CPAs Attorneys Enrolled Agents Tax Professionals Professional Education Network TM www.edwardjones.com/teamwork CONTENTS 1 Introduction 2 Basics of

More information

Life Insurance: Business Applications

Life Insurance: Business Applications Life Insurance: Business Applications What is business life insurance? Life insurance is an important part of a business. It may be used as a funding mechanism for your buy-sell agreement and as business

More information

Life Insurance Coverage on a Key Employee

Life Insurance Coverage on a Key Employee Raymond James Financial Services Bill Poland, CRPS, CRPC Financial Advisor 108 State Street Suite 200 Greensboro, NC 27408 336-272-7584 800-821-5941 bill.poland@raymondjames.com Life Insurance Coverage

More information

helping your client to choose the right life insurance

helping your client to choose the right life insurance helping your client to choose the right life insurance Andrew J. Willms and John C. Zimdars, Jr., published in The Practical Lawyer, October 1996. The variety and versatility of life insurance products

More information

MetLife Investors. Life Insurance Review. Ensuring life insurance coverage meets today s goals. Life. your way

MetLife Investors. Life Insurance Review. Ensuring life insurance coverage meets today s goals. Life. your way MetLife Investors Life Insurance Review Ensuring life insurance coverage meets today s goals Life. your way SM Life. your way Preserve your lifestyle. Live your dream. Build financial freedom with confidence

More information

CHARITABLE GIVING: DOING WELL BY DOING GOOD AND THE LAWYER S ROLE IN THE CHARITABLE GIVING PROCESS

CHARITABLE GIVING: DOING WELL BY DOING GOOD AND THE LAWYER S ROLE IN THE CHARITABLE GIVING PROCESS CHARITABLE GIVING: DOING WELL BY DOING GOOD AND THE LAWYER S ROLE IN THE CHARITABLE GIVING PROCESS James C. Provenza, J.D., CPA Attorney At Law Chicago phone: 847-729-3939 Rockford phone: 815-298-0664

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