A trusteed cross purchase buy-sell agreement works well for clients who want a cross purchase buy-sell arrangement, but there are three or more business owners.
For clients who have maxed out retirement plans and are not eligible for a Roth IRA or have already contributed to one, this strategy can provide a way to save additional funds for retirement – with tax-free accumulation and distributions, and no RMDs.
Clients who are interested in getting the largest life insurance benefit for the least out-of-pocket cost may want to consider purchasing life insurance within their qualified retirement plan.
An entity purchase buy-sell agreement may work well for businesses with multiple owners, where the owners are different ages or the business wants to keep assets on the books.
Take a three-pronged approach to reviewing your clients' life insurance policies and to determining whether they should be adjusted.
Your clients can use life insurance to maximize their pension benefits and help provide financial independence for their surviving spouse.
Performing a capital needs analysis can help your clients determine how much life insurance protection they need and better prepare them for the future.
If your clients own deferred annuities that they don’t need for retirement and want to pass along without their family paying both estate and income taxes, they can use life insurance to help maximize the wealth transfer.
Pro athletes and other high-profile clients often need special treatment. That’s why we offer white glove, confidential service and a 1-and-done underwriting process.
If your business owner clients have important, highly paid executives who need to save more for retirement, they may want to consider offering a Bonus and Tax Loan (BATL) Plan® – an Executive Bonus plan combined with loans from the employer to pay the taxes on the bonuses.
Life insurance can offer both death benefit protection and cash value potential that can be used as a “private reserve” of cash for your clients, their families, and their businesses.
If your high-net worth clients need life insurance protection but don’t want to liquidate potentially high-performing assets, they may be able to finance the premiums.
If your clients employ key people who are critical to their business’s success, they may want to consider protecting the business in case something happens to those employees. One way to do that is through Key Person life insurance.
Your clients might be surprised at how much a stay-at-home parent “earns” – and how little term life insurance costs in comparison.
Highlighted Product(s) with this concept:Term Series
If your business-owner clients worry about what could happen if they pass away unexpectedly, they may want to use a Stay Bonus to retain their key employees and help stabilize and maintain the business through that difficult time.
By placing AXA’s 1040 and Schedule A overlay pages on top of your clients’ most recent tax returns, you, in cooperation with their CPAs, may be able to discover planning opportunities you never knew existed.
Successful businesses need to attract, retain, and reward key employees. One way to do this is through non-qualified executive bonus plans, funded with permanent life insurance.
Do your clients need to put together a buyout agreement for their business? For two business owners, a simple cross purchase buy-sell can work well.
Clients who need both life insurance and long-term care protection may want to consider combining them into one policy: life insurance with a long-term care rider.
Using the 3-bucket approach, you can help your clients ensure their family’s legacy, have money for retirement and for other financial contingencies.
For clients who have a heavy concentration of one stock in their portfolio, you may want to suggest using life insurance to help diversify and transfer wealth efficiently.
High net-worth families can use life insurance as an asset to transfer a pre-determined amount of money to their beneficiaries at death, regardless of how their other assets perform.
Highlighted Product(s) with this concept:IUL Protect
During retirement, your clients can help keep their tax bill down by accessing additional funds from cash value life insurance.
Market performance in the earliest years can make or break a client's long-term retirement. But, with cash value life insurance, clients can take available withdrawals during down-market years to help preserve their assets.
When a business co-owner needs more flexibility in how life insurance funds will be used, you may want to consider this strategy.
Highlighted Product(s) with this concept:BrightLife® Grow
If you have older clients with substantial wealth, you may be able to use the children’s projected inheritance to justify life insurance for the next generation.
If your clients don’t need their Social Security benefits for retirement, they may use a portion to help maximize their legacy by purchasing life insurance.