Posts by Marc Schwartz and Paul Falletta

The popularity of Index Universal Life products has stirred up the creative talents of many professional financial advisors, and nowhere has that creativity been more apparent than in the area of policy loan rescues.  No question this is a significant opportunity to bring value to clients and generate a new sale, but it requires a high degree of expertise to navigate successfully.  This article will review rescue strategies so that you have a better idea of what works and what doesn't.  In addition, the Windsor case design team is fully conversant on the options and approaches t...

  New Section 199A Makes Pass-Through Deductions Available for Small Business Owners and Life Insurance Professionals The Internal Revenue Service (IRS) recently issued its final regulations describing the rules pertaining to section 199A. For those who are unfamiliar with 199A, the section provides for a new deduction of up to 20 percent of qualified domestic business income for pass through entities such as sole-proprietorships, partnerships, S-corporations, trusts, and estates. AALU provided this summary in its January 30, 2019 WR Newswire: "By way of background refresher on section 19...

Ready for some quick sales ideas that you can take from start to finish before December 31?  Here are some of the best from Windsor and our carriers!   Year-End Tax Deductions!  American National ​As we enter the last two months of the year we are at the very peak of the pension season. Now is the time to contact prospects who couldn't pull the trigger on planning earlier in the year. There is much greater urgency to establish a plan now than back in March when no deadlines were looming. Contact accountants and let them know that you can help them and their client...

A major life insurer recently shared significant premium results that they've realized in the business planning marketplace over the last couple of years. The average size case represents $18,000 in new premium. And that's $18,000 of traditional individual life premium - not COLI or spread compensation type products. If that number and the resulting revenue grabs your attention, then you'll want to invest some of your time to realize this kind of ROI - because the results are real, business owners are buying, and advisors are successfully using permanent life insurance to alleviate a host of w...

Introducing Caitlin Peterson -  Earlier this year, Windsor participated in the Life Happens "Life Lessons Scholarship Program" for young people whose lives were dramatically changed by the death of a parent. The participants were asked to tell their stories and, as you would expect, all of their experiences were tragic and powerful.   Windsor selected Caitlin's story as the most compelling, and as a result Caitlin was awarded a scholarship for her ongoing education.    We recommend that you take a few minutes to read Caitlin's inspirational story here. ​ September is L...

For life insurance industry veterans, using cash value life insurance to supplement retirement savings is as old as the rate book. Overfunding premiums and enjoying the advantages of both insurance protection and tax-free accumulation (without the burden of qualified plan rules) is what makes our product so unique. And with the potential for tax-free income down the road, we really have an unmatched solution for clients wanting to enhance their retirement in a very tax-efficient way. If life insurance is new to you, or if you just need a refresher on the Life Insurance Retirement Plan (LIRP) c...

Interested in offering clients additional products and services while enjoying the compensation that comes with it? How would you like to strengthen and secure your client relationship by helping the business retain and reward key people? Could your practice benefit from another source of current and future revenue by providing innovative life insurance solutions without the "noise" associated with this line of business (underwriting and ongoing administration)? What if the only invasive question was "are you actively at work?" And finally, any "white collar" client with existing group term in...

The business planning market has never been riper. While the more traditional estate planning market may be a bigger stretch for many advisors, there are close to 30 million small businesses that need your help and they need it now. The issues keeping business owners awake at night have not changed: Concern over losing critical assets – people – themselves or key employeesThe ability to recruit, retain and reward those key employeesEnsuring business continuity and successionRetirement income needsGrowing and protecting personal wealth, with that wealth typically tied up in the business What ha...

The Tax Cuts and Jobs Act of 2017 introduced some big changes in the tax law, creating both confusion and opportunity for financial planning professionals. You will find links at the end of this blog to several excellent resources that will help you navigate through the three broad categories of life insurance planning that are most dramatically impacted by the new tax laws: Personal insuranceEstate planningBusiness-related insurance But to begin, a review of important tax laws that didn't change. Life insurance death benefits remain income tax-free, with rare exceptions (e.g. transfer for val...

The July 20, 2017 Wall Street Journal article, "Happy 100th Birthday! There Goes Your Life Insurance," points out a major hidden flaw in older life insurance contracts: the risk of living too long. In the mid-20th century, the life insurance industry, along with government regulators and actuaries, did not expect or anticipate that more than a handful of policyholders would reach age 100. But today, some insureds fortunate enough to approach these "golden" ages are surprised to learn that their policies will "endow"– that is, coverage will end and any cash values will be paid to the policy own...

A 2014 study by the RAND Corporation estimated the cost of informal caregiving in the US at $522 billion: "Across America, people spend an estimated 30 billion hours every year providing care to elderly relatives and friends. The cost is measured by valuing the times caregivers have given up in order to be able to provide care." Those numbers continue to grow in 2017, as the baby boomer generation ages and creates greater demand for long-term care services. Numbers like this get everyone's attention, and long-term care (LTC) is a concern that is at once personal, cultural and political. Those ...

In our previous two blogs, Marc Schwartz talked about how pricing adjustments among a few life insurers had created an "out-of-control" environment for some of our clients. In part two of "Putting Clients Back in Control," Marc explored several product solutions that can help put your clients back in control – but for you, what's most important is knowing first what your clients want out of their life insurance policies. Here, Marc and DuWayne Kilbo discuss why you need to review your clients' policies now. The idea and process of Policy Review has been around forever. Why is it so important n...

In our previous blog we explained how many of our clients feel as though what they want and expect from their life insurance policy is no longer in their control. Because some life companies have taken actions that create additional uncertainty and expense for their customers, it's up to us, as experienced professionals, to find a way to put our clients back in control. The key is to know what's important to your clients and then find the products and features that deliver the predictability and value they expect. No Lapse Guarantees (NLG) No question that we've seen a dramatic retraction of t...

You've probably noticed that life insurance has been making headlines recently – which is rarely a good thing. When both the Wall Street Journal and the New York Times sound off on how life insurance companies today are facing lawsuits from some of their customers, it's clearly cause for concern. The legal actions have mostly been prompted by increased premium requirements on universal life and long term care contracts. According to the companies, there are many reasons for the actions that result in the increases, including slow growth, a shrinking sales force, increased compliance requiremen...

Selling is a creative and dynamic process, at times requiring fresh thinking and a different approach to engage customers. In the case of business owners, substantial monies are spent to attract and retain talented employees who can get the job done. However, often overlooked by business owners may be one of their better employees–the minimum wage employee. This is the lowest paid employee in the company who, if given the opportunity, has the ability to contribute significantly to a business owner's success and well-being. The "minimum wage employee" conversation is a creative and fresh way fo...