December 8, 2016

A Family Affair: Succession Strategies 
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Why Life Insurance Should Be Part of your Family Business 


According to the Conway Center for Family Business, "Family-owned businesses are the backbone of the American economy. Studies have shown about 35 percent of Fortune 500 companies are family-controlled and represent the full spectrum of 
American companies from small business to major corporations." 


Many advisors take part in business succession planning for their clients, but just as many fail to capitalize on the opportunity of including life insurance in that plan. Not only is this important for all business owners, but specifically for family-owned businesses.
The 10-10-10 Plan     
With AIG's Lifestyle Income Solution 
       
While term insurance is the most popular form of a life insurance policy, it only provides temporary coverage. However for more permanent needs, there are a variety of choices - with the most secure and least expensive option being Guaranteed Universal Life (GUL). 



For example, George is 50 years old and looking for $1,000,000 of

coverage for his family. He wants to provide life insurance for his spouse well into

retirement, but sees that need dropping as he approaches the latter retirement years. He is also concerned about the impact of a chronic illness on his retirement.


Solution: He pays $24K/year for 10 years. Then, he pays nothing for 10 years. Then he takes $24K out of the policy for 10 years (tax free!) 



                                       
                         
    
New Rules on the Rise? 
New York Regulators Look to Life Insurance Premiums



Financial Services Superintendent Maria T. Vullo announced that the New York State Department of Financial Services (DFS) has proposed a new regulation to govern life insurance company practices regarding increases in the premiums of certain life insurance and annuity policies. 


The proposed regulation will offer DFS the opportunity to review increases prior to implementation and require life insurers to notify DFS at least 120 days prior to an alteration in non-guaranteed elements of an in-force life insurance or annuity policy. 
Settle On a Strategy 


5 Advisor Benefits to Life Settlements 
                                   
Each year, more than $100 billion face value of life insurance lapses by seniors over the age of 65, mostly caused by a lack of knowledge that an unneeded or unaffordable policy may be sold. 


A life settlement is a strategy for helping your client capture some of those benefits, rather than forfeiting them back to the insurance companies. In addition to client benefits, financial advisors themselves can benefit from clients pursuing a life settlement in the following areas: 


1. Enhance client relationships. 
2. Garner commissions. 
3. Set competitive differentiation. 
4. Obtain new business. 
5, Build trust with families. 
For Free


The TBA Mobile App was designed to give advisors the ability to be more efficient while away from the desk. This app has all of the tools needed to create sales as well as process paperwork more efficiently. It can be downloaded on your phone or tablet. It is available for download for free from the app stores of apple, android and kindle.
Available Tools Include:
  • Instant Term Quotes 
  • Online Application 
  • Needs Analysis
  • Licensing 
  • Direct Dial TBA Employees
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