As part of our December 2014 Newsletter, we are featuring a special “Best Of” issue. Below, you will find a list of our Top 10 Articles on Financial & Life Insurance Planning. These articles are written by a variety of financial and estate planning professionals, as noted below. Some Magical Aspects of Life Insurance by Jonathan G. Blattmachr & Matthew D. Blattmachr Insurance as the Key Ingredient of the “New” Estate Planning Summary of a Live Presentation by Martin M. Shenkman, J.D., CPA/PFS, MBA, AEP (Distinguished) Life Insurance from the Estate Planning Attorney’s Viewpoint by Steven J. Oshins, J.D., AEP…
Some Magical Aspects of Life Insurance
By Jonathan G. Blattmachr & Matthew D. Blattmachr Life insurance is one of the least understood financial products in the world. In just a few minutes of study, one can reasonably grasp the concept of equity interests in a business (e.g., common stock, preferred stock), bonds and other forms of debt. Even more complicated financial products, such as derivatives and options can be readily understood. However, even some people who have spent a career in the life insurance industry do not really understand the financial aspects of this product. Indeed, after finishing a lecture on how life insurance “works,” a…
What’s the Truth About Life Settlements?
By Daxton Fryer, Senior Life Settlement Analyst Whether you call it a life settlement, a lifetime settlement or a senior settlement, Life Settlements have become a very popular option for today’s financial planners and trusted advisors and their clients who may want to cash out their life insurance policies. Life Settlements have also become a powerful option for corporations, trusts and individuals who have poorly performing or thinly funded senior client policies. This specialty is fast becoming a mainstream financial planning tool for insurance agents, CPA’s, tax attorneys, estate planners, elder law attorneys and trust companies. As a financial professional,…
Top Five Life Insurance Myths
By Steven J. Oshins, J.D., AEP (Distinguished) Understanding life insurance is important for everybody in the estate planning industry. Whether you are a financial advisor, an attorney, an accountant or a banker, you have plenty of opportunities to help your clients make good life insurance decisions. With any complex topic, there are always myths that exist that cause people to make bad purchase decisions. The life insurance industry is no different than other industries in that numerous myths have been repeated over and over through the years. MYTH #1- Buying term insurance and investing the difference is better than buying…
The Importance of Periodic Life Insurance Policy Reviews
By Martin M. Shenkman, CPA, MBA, J.D. | Volume 2, Issue 2 (February 2014) Everyone who owns an insurance policy should be certain to conduct insurance reviews. A recent study found that in 75% of cases, the person insured could have reduced their premium outlay by an average of 40%, or increased their coverage by an average of 40% for the same outlay. These changes occur because insurance policies have evolved over time. Mortality rates have improved, people are living longer, and since insurance companies are going to pay claims later, newer policies will be cheaper than older policies even…
Whole Life as a Unique Planning Tool
By Jason Oshins, Financial Advisor, MBA Given the financial condition of many families today, we’d be remiss not to explore whether more powerful retirement strategies exist than the ones typically employed. The traditional retirement strategy involves funding various financial vehicles during working years and then living off the income generated by these assets during retirement. As a result, each year retirees spend only the interest earned on their assets because they fear running out of money or preserving adequate legacy. At some point, they either sacrifice principal to maintain lifestyle or sacrifice lifestyle to maintain principal. Either way, they must…
Sell More Life Insurance by Showing Prospects How to Avoid Income Tax
By Philip J. Kavesh, CFP®, ChFC, J.D., LL.M. (Taxation) The 2012 American Taxpayer Relief Act (“ATRA”) may have reduced the need for life insurance in estate tax planning, but it has opened numerous opportunities to utilize life insurance as an income tax planning tool. A big concern for taxpayers who may want to sell their home, stocks, rental property or business is the huge jump in capital gains taxes. The top federal rate bracket has moved from 15% to 20%, but when you add in the combined effect of the 3.8% Net Investment Income (“Obamacare”) Surtax, the itemized deduction phaseout or…
Phil Kavesh to Present at the AVIVA 2013 Sales Expo in Arizona
Today, our President, Philip J. Kavesh, is in Arizona for AVIVA USA’s Sales Expo 2013 speaking on the topic, “The Top 22 Overlooked Uses of Life Insurance in 2013” before a select group of AVIVA’s finest brokers and agents. According to Phil, they’ve made some pretty big announcements here and there are some exciting things coming to AVIVA in 2014! Thanks again AVIVA for this wonderful opportunity to help educate your agents!
New Trustee Liability: Failure to Review Trust-Owned Life Insurance
By Richard Gilman, CFP® and Philip J. Kavesh, J.D., LL.M. (Taxation), CFP®, ChFC, California State Bar Certified Specialist in Estate Planning, Trust & Probate Law The Uniform Prudent Investor Act (UPIA) requires trustees of Irrevocable Life Insurance Trusts (ILIT) to evaluate the appropriateness of the Trust Owned Life Insurance (TOLI) and to manage ILIT assets in a manner that minimizes costs and maximizes benefits to trust beneficiaries. This equates to a duty to not only acquire the right policy, but to review it periodically to be sure it still is in the best interests of the beneficiaries. (Be aware that…
Life Insurance from the Estate Planning Attorney’s Viewpoint
By Steven J. Oshins, J.D., AEP (Distinguished) Estate planning attorneys are often known for “killing” life insurance sales. Since the attorney owes the client a duty to do what is in the client’s best interest, if the attorney truly believes that the client does not need the insurance policy, then the attorney is arguably satisfying his or her ethical responsibilities to the client. However, the attorney often automatically says “no” to the client’s detriment. Perhaps the problem is that many attorneys just don’t understand the different life insurance products. And human nature is often such that if you don’t understand…