|
OLD INDUSTRY TERMS WITH A NEW MEANING: |
|
|
Product Re-Pricing
Regular readers of this publication might recall that this space normally contains a list of product changes and important carrier news. To accurately and completely list the product changes that have occurred in just the past 2 months would take a very long column that few of you would care to read. To understand why, I encourage you to read the article to the right of this column, "A New Danger Lurking". It will provide you with an important perspective on what is happening in today's marketplace.
Suffice it to say that virtually every carrier either has or will very soon introduce a "Re-Priced" version of their term and permanent plans. Some have even withdrawn plans (i.e. Return of Premium Term).
The lesson here is to stay alert and try to avoid showing your clients outdated rates and product information. BUI is attempting to keep you updated on product pricing changes by emailing short and concise "Special Bulletins". All of these Bulletins are also archived in the Latest News column on the front page of the BUI web site.
Your BUI marketing team is prepared to requote your case if you suspect that the illustrations you have may be outdated. Just contact us at marketing@brokerageunlimited.com. |
|
If this e-mail was forwarded to you by a friend or colleague, we encourage you to join our e-mail list
|
|
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.
------------------------------------------
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. | |
|
| BUI IS ON THE MOVE! |
|
Among the exciting things happening at BUI, the team is looking forward to moving to our new office. After ten years in our current location, we are making a change that will afford us significant upgrades to our technology platforms and environment.
We are currently planning to move on Friday, October 16, 2009. We will close the office early on the afternoon of Thursday, October 15, 2009 to prepare for the move. This schedule should allow us to fully re-open for business, in our new location, on Monday, October 19, 2009, at 8:30 a.m.
There will be no changes to our post office box mailing address, telephone or e-mail contact data. More information will be shared in the near future as we approach this exciting transition. |
|
A NEW DANGER LURKING: |
|
| Prices Are Going Up
If you are accustomed to selling LTC insurance or health insurance, increasing premiums are not news to you and you probably have a procedure in place for handling client meetings and setting client expectations. If you primarily sell life insurance and have been in the business for the past 10 years, 20 years or more, the current environment is likely presenting some real challenges.
|
| SURVIVORSHIP TERM INSURANCE: |
|
What you should know about this uncommon product
When thinking about survivorship or second-to-die insurance products, most think automatically of the most popular version of this product, guaranteed death benefit universal life. Generally term insurance is not thought of with respect to this product, and for good reason. Liquidity needs for estate settlement costs are virtually always a permanent problem requiring a permanent solution. No argument there.
|
| ESTATE LIQUIDITY STRIKEOUT: |
|
The Disastrous Failure to Plan for the Continuation of a Family Business
Philip Wrigley, owner of the Chicago Cubs from 1932 until 1977, believed that Cubs baseball was all about selling a day at beautiful Wrigley Field. This vision of Cubs baseball was in direct contrast to the estate tax storm he left for his family by failing to plan his estate.
|
WHAT IS ANNUITY FUNDED LIFE? |
|
|
Many clients hold non-qualified fixed, variable, or indexed deferred annuities that they will never need to tap for retirement income purposes. Even with market fluctuations, many of these clients have annuities with appreciation that they hope to someday transfer to their beneficiaries. However, these clients and their beneficiaries may see large portions of their annuity values eroded by taxes. First, by the client's estate tax and, later by income taxes when annuity gains are taxed to the beneficiaries. This erosion may consume 60% to 70% or more of an annuity's value, often called the "Double Tax" problem.
Many clients are unaware of this tax erosion issue and the impact it will have on their beneficiaries. However, by combining their existing annuity with life insurance, clients can boost, often significantly, the benefits available to their beneficiaries.
|
|
FROM YOUR NEW BUSINESS CONSULTANT:
Hints On How To Avoid Delays And Speed The Processing Of Your Business
Top Five Illustration Tips:
- Shows correct age and appropriate backdating (if applicable),
- All riders and modes must be accurately illustrated,
- Advisor address shown (in NAIC states only),
- Full name of client and advisor,
- Illustration carriers recent date (rates have been changing often and quotes older than a few weeks should be rerun).
Top Five Application tips:
- Agent Licensed/appointed in the state where the business is solicited,
- All questions on the application answered,
- Information matches between application and signed illustration being submitted,
- All documents properly signed and dated,
- Completed Agent Report
- All questions answered and signed
- Agent name and SSN included
Top Five Replacement tips:
- Sign the replacement forms at the same time the application is completed,
- Answer every question and check all appropriate boxes on the application and replacement forms,
- Ensure Owner and Insured are identical to the existing coverage for a 1035 Exchange,
- Include Trustee/Corporate Office titles next to corresponding signature,
- Complete replacement forms anytime the client intends to terminate or alter coverage as a result of the placement of the new coverage.
For more information or assistance with the completion of your application, contact your BUI New Business Consultant. You will find a list of telephone extensions and email addresses on the BUI website (www.brokerageunlimited.com). Click on "About" on the Main Menu and "Staff" on the drop down menu. | | |
|
|
|