Brokerage Unlimited, Inc.
P.O. Box 419006
St. Louis, MO 63141
marketing@brokerageunlimited.com
314-392-2841 / 800-645-2841
brokerageunlimited.com
For Broker Use Only!
Not intended for use by the general public. |
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Latest Carrier & Product News |
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American National Life
ANICO Indexed Universal Life has been introduced with a number of attractive features. The product offers a 100% participation rate with a 3% minimum guarantee, and a 14% cap. The fixed account is currently earning 5%. the product also uses an annual point-to-point calculation on the S&P 500 index.
In addition, the product uses "age last birthday" and contains rolling target premiums for greater compensation.
Aviva Life and Annuity Co.
Aviva has adjusted rates for its Guaranteed UL Solution product. While some rates have increased, the product remains very competitive. This product also still offers its very popular Wellness For Life Rider, with which the policyholder can reduce future premiums by visiting their doctor regularly, and controlling their weight.
AXA-Equitable
A new series, Term 151X, replaces the previous version. This series includes durations for 10, 15, 20, and 30 years.
Banner Life
New lower term rates being rolled out in March, 2010. A new Life Choice UL plan, which permits a dial-a-guarantee has been introduced.
Genworth Companies
Paperwork package has been released that makes it easy for advisors to assist their clients to take advantage of the PPA '06 provisions allowing 1035 tax free exchanges from non-qualified annuities to long term care insurance products.
ING Reliastar Life
ING TermSmart rates were adjusted effective March 15, 2010. Though the policy fee has increased to $68 (under $1 million) and to $98 (over $1 million), rates themselves have been lowered at many ages for all term periods.
A new 25-year plan has also been introduced to add to the existing 10, 15, 20 and 30-year plans. Higher maximum issue ages are also effective with the new rates. Contact your BUI New Business Consultant for transition information.
Lincoln Benefit Life
TrueTerm rates are being reduced effective April 12th. Contact your New Business Consultant for transition information.
Prudential
PruLife Universal Life Plus 2010 will become effective May 1st where approved. The new version of this cash accumulation UL product will generate greater cash accumulations.
Savings Bank Life (SBLI)
New term rates were effective March 1, 2010. Reductions for 20 & 30-year term periods at both preferred underwriting categories.
West Coast Life
WCL ModLife, a guaranteed UL with a modified premium schedule now available. Offers premiums up to 50% lower for the first 5 years. Beginning in year 6, the premium gradually increases through year 10. In year 11, the premium stops increasing and remains level and guaranteed for life. Product has a rolling 24 month target premium. Product is available in most states. |
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IRS Circular 230 Disclosure:
To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice (whether U.S. federal, state, local or otherwise) contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties that may be imposed on any taxpayer (under the Internal Revenue Code, state tax law, local tax law or otherwise) or (2) promoting, marketing or recommending to another party any transaction or matter addressed herein. | |
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USING IRC SECTION 1035 TO FUND LONG TERM CARE PREMIUMS |
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On January 1, 2010, new provisions contained in the Pension Protection Act of 2006 took effect. These provisions will have a large impact in planning for the purchase of long term care insurance. The provisions offer a significant opportunity to use non-qualified annuity cash values that would otherwise be subject to ordinary income taxation, for the purpose of funding traditional long term care insurance premiums, free of federal income tax.
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NEW OPPORTUNITIES FOR FUNDING LONG TERM CARE: LINKED BENEFIT PRODUCTS |
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New provisions in the Pension Protection Act of 2006 took effect January 1, 2010, which had a positive impact on the funding for long term care. Both types of long term care products, traditional indemnity and reimbursement plans, as well as life insurance and annuity Linked Benefit plans were positively impacted by the new provisions.
In the case of both types of products, these provisions offer a significant opportunity to use funds that would otherwise by subject to ordinary income taxation, for the purpose of funding long term care benefits on a federal income tax free basis. The tax benefit for traditional long term care plans are discussed in another article in this publication.
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ANTI-MONEY LAUNDERING UPDATE |
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Most insurance carriers require advisors to update their Anti-Money Laundering training every two years. If you completed your last AML training in 2008, you may be due for an update. If you are due for an update and fail to complete it, a carrier may delay the processing of your business and the payment of commissions.
To learn if you are due for an AML Training update, go to the LIMRA AML Web Site. Once there, log in*, click next, and it will take you to the "Training" page where it will show if there are updates you are required to complete.
*As a reminder, your username is the first four letters of your last name and the last six digits of your Social Security number. For example, John Smith would be "Smit456789". |
DEATH TAXES ARE NOT DEAD:
(For residents of some states) While the focus in Congress has centered on the federal estate and gift tax system, state inheritance and estate taxes have emerged as the new concern for many individuals. A little background may help in the understanding of when they apply.
There are two types of state death taxes. An inheritance tax is an assessment made on the portion of an estate received by a beneficiary. It differs from an estate tax, which is a tax on the entire estate and is levied before it passes to the beneficiaries. |
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| ESTATE TAX PLANNING: WHAT NOW?
While the estate tax has disappeared for 2010, estate planning has never been more important.
As I am sure you are aware, the federal estate tax rules changed radically on January 1, 2010, and could change radically again on January 1, 2011 unless Congress passes new legislation during this year. Most of the former prognosticators have "retired" their crystal balls, as it has become impossible to predict what a stalemated Congress will or will not do with respect to the estate tax situation. The bottom line is to encourage a discussion with your clients, and for you to ask if they are reevaluating their existing estate plans in consultation with their legal and tax advisors. |
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| Click here for full article |
| UNDERWRITING CORNER |
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By Bob Halsted, BUI Chief Underwriter
Among the most common issues advisors want to discuss are clients who fall into the following categories. Because many carriers changed their underwriting posture, the following may be helpful to you:
- Nicotine usage (other than cigarettes)
- One carrier will offer all non-cigarette nicotine users a non-nicotine rate. This includes cigars, chewing tobacco, nicotine gum, etc. The applicant can even have nicotine in their urine specimen.
- Aviation (private pilots)
- Several carriers will consider amateur pilots without extra premium or exclusion at better than standard rates (if they qualify medically).
- Build (height and weight)
- We've seen some favorable movement in the right direction with more liberal build requirements for the preferred rate category.
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