Brokerage Unlimited, Inc.

BUI Brokerage Briefs
  April 2009 
Please visit the new www.brokerageunlimited.com
Welcome to the April 2009 edition of the BUI Brokerage Briefs. You are receiving this communication because of your business relationship with BUI or due to your registration as a BUI web site user.  Previous editions are archived on the BUI web site at www.brokerageunlimited.com. 
 
We hope you find the material in this communication valuable.
In The April 2009 Issue
Latest Carrier & Product News
Coming Next Issue
Carrier Financial Issues
BUI Launches New Web Site
How Much Life Insurance is Enough?
Legislative Update
Advanced Marketing
Wealth Transfer Planning
Innovative Insurance Solutions
LATEST CARRIER & PRODUCT NEWS
 
Carriers continue to introduce new products, revise term and universal life rates, and announce other changes they deem necessary to operate in today's extreme environment.  BUI is working hard to keep you updated as conditions continue to change.
 
The launch of the new BUI Web Site is an important part of this effort.  The new site gives us the capability to provide more timely updates on our home page.  Be sure to check the Latest News column often for news of significant announcements (www.brokerageunlimited.com). 
 
Financial ratings are also changing all too rapidly and it is proving difficult to stay abreast of the changes.  BUI has created a document (click here) listing the ratings of our major carriers.  This document is updated when necessary and is archived on the web site so you can downloaded it when you need an update. 
 
As always, details may be obtained from the BUI Marketing Team by email.  
Marketing@brokerageunlimited.com. 
COMING IN OUR NEXT ISSUE
Performance Evaluation is a process designed to evaluate the performance of a client's or prospect's existing life insurance portfolio and to confirm goals and objectives.  After careful review, BUI will provide advisors with a detailed analysis of the client's portfolio, and if appropriate, offer options so an informed decision can be made about potential changes. 
 
In many cases, the process results in;
  1. A reduced premium outlay for the same coverage,
  2. An increase in death benefit for the same premium outlay,
  3. An extension of the coverage guarantee, and/or
  4. A move to a carrier offering greater financial stability.  
The next BUI Brokerage Briefs will be dedicated to this important business building process with a series of articles outlining in detail how this process works, and how you can seamlessly incorporate it into your daily activity.  Watch for it!
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Brokerage Unlimited, Inc.

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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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.

CARRIER FINANCIAL STABILITY
Michael Tessler, President, Brokerage Unlimited, Inc. Comments on Carrier Financial Stability
 
Michael recently attended an industry meeting that included a large number of carrier CEO's, Presidents, and Chief Marketing Officers.  Read his comments with respect to what is happening in the market place. 
 
Michael's comments are located on the BUI Web Site Home Page under "Latest News" (no log on is required to access this document). 
 
Brokerage Unlimited Launches New Web Site Design
 
Frequent visitors to the BUI web site have undoubtedly noticed the significant changes recently made to our web site.  The changes are intended to make the site more pleasing to the eye, more user friendly, as well as easier for us to update.  This ease of updating allows BUI to offer users more content in a much more timely fashion.  In fact, you may see changes to the site several times per week. 
 
 
To go to our new web site: www.brokerageunlimited.com
 
How Much Life Insurance is Enough?
  
The importance of life insurance to protect the financial security of a family cannot be overstated.  But, we frequently are asked "how much life insurance is enough?  Advisors want to be able to help their clients determine the appropriate amount without purchasing too little, or too much coverage. 

While there is no single best method for determining the amount of life insurance needed to protect a family, it is useful to be familiar with several different ways to look at this question.  The object is to help your client make the right decision for their situation. 
 
LEGISLATIVE UPDATE: 
Federal Estate Tax
During these times of economic uncertainty, discussion of the federal estate tax has taken a back seat to our overall economic problems.  However, Congress has the estate tax issue near the top of its list, and change in the estate tax law is likely to occur during 2009. 
 
Under current estate tax law, decedents dying in 2009 have an estate tax exemption of $3.5 million and will be taxed at a 45% rate on the estate value in excess of that exemption amount.  If Congress fails to enact new estate and gift tax legislation in 2009, the estate tax will be repealed for 2010 and, in 2011, the estate tax will return with a $1 million exemption per individual and a maximum tax rate of 55%.
ADVANCED MARKETING: Business Continuation Planning
 
Business continuation planning is as important for family or privately held businesses as it is for Fortune 1000 companies - perhaps more so.  Consider the competing priorities of the remaining owners and the survivors when a business owner dies:
 
What the Beneficiaires Want:
  • To be paid fair value for the business
  • Prompt settlement of the estate
  • Fix the value for estate tax purposes
  • Eliminate the claims of any creditors

What the Surviving Owners Want:

  • To pay fair value for the business interest
  • Prompt transfer of the business interest
  • Full control with no interference from heirs
  • Continued line of credit
  • Retain customers & employees  
WEALTH TRANSFER PLANNING:
Life Insurance As An Asset Class: A Predictable Asset for Unpredictable Times
 
Just when you thought the market for life insurance liquidity in estate planning was going to go away for all but your wealthiest clients, a new and very powerful opportunity is becoming a hot topic among advisors who are "in the know".  It should be recognized that Wealth Transfer (or Estate) Planning involves many facets beyond the payment of estate taxes. 
 
The efficient transfer of assets at death to those you designate must be planned with great care to avoid unnecessary expenses, and life insurance plays an integral part in this planning due to its predictability, liquidity, tax-favored status, and many other benefits. 
 
INNOVATIVE INSURANCE SOLUTIONS:
 
Life Insurance as an Alternative to a QDOT for Non-Citizen Spouses 
(A Life Insurance Strategy to Consider When One Spouse is Not a U.S. Citizen)

TAX PLANNING for a non-citizen spouse presents additional challenges to those encountered when planning for U.S. citizen spouses.  In 2009, a U.S. citizen may transfer up to $3,500,000 free of estate and gift tax to non-spouse beneficiaries upon the U.S. citizen's death.  Additionally, a U.S. citizen may generally make unlimited post-death transfers to a spouse free of estate and gift taxes.  This is called the unlimited marital deduction. 
 
A U.S. citizen spouse also may transfer up to $3,500,000 estate and gift tax free to a non-citizen spouse upon the non-citizen's death in 2009.  However, a U.S. citizen spouse may not make unlimited post-death transfers to a non-citizen spouse free of estate and gift taxes.  Post-death transfers to a non-citizen spouse are not entitled to the unlimited marital deduction.
 
Click here for entire article 
 
For more information about this and other advanced marketing concepts, contact BUI's Advanced Planning Attorney, Brian Seigel, JD.