Split dollar techniques: getting out isn't so easy

Article Abstract:

Life insurance agents should consider ending split dollar agreements to avoid the rate acceleration that takes place as the policy matures, resulting in benefits that can surpass the value of the premium. Ideally, the split dollar agreements should be terminated before this point. Split dollar agreements are often chosen by concept-driven financial planners, but once they have met their objectives, ended such agreements can be difficult.

Methods, Financial planning, Column, Split-dollar life insurance, Split dollar life insurance

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Home delivery

Article Abstract:

The home service distribution service is the insurance industry segment which serves low- and moderate-income families with monthly client visits for review, advice, and premium collection. The home service area is comprised of 28,000 agents employed by 80 insurance carriers. In any year these agents sell 29% of all life policies which represent 14% of industry premiums, with permanent, cash-value policies are 75% of the policies sold.

Insurance industry, Life insurance industry

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Don't invite the tax man to estate settlements

Article Abstract:

Qualified retirement plan accumulations are subject to significant taxes that can be triggered by a number of events. Over 80% of a pension accumulation can be lost due to state and federal taxes and other penalties. The purchase of a life insurance policy outside of a plan can provide income tax-free and estate tax-free death benefits that replace the amount lost to taxes.

Taxation, Qualified benefit plans, Correction Notice

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