Maturity Age for an Insurance Policy

On July 21, 2017, the Wall Street Journal published an article titled “This Life Insurance Isn’t So Permanent”, which discussed instances where an insurance policy is paid out prior to the death of the insured per the terms of the contract. Specifically, they refer to the situation that a 99-year-old is currently in; his family will lose out of $3,200,000 in death benefit proceeds when he turns 100 years old in September. His Transamerica policy states that the policy’s cash surrender value will be paid out to the policy-owner upon the insured reaching maturity age (age 100 in this case). Many policy-owners are probably unaware that this could be a clause of their insurance policy and are in for an unpleasant surprise when their policy is paid out before their passing.

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WealthPoint Announces New Insurance Partner

DENVER, March 16, 2017 – WealthPoint, a leading provider of business and life insurance advisory services with a focus on succession, exit and wealth transfer planning to entrepreneurial family groups and affluent clients throughout the U.S., expands into the Denver market with the hiring of Kevin McMahon, its newest Insurance Partner. “Adding Kevin to our team enables us to provide our insurance and business advisory services to the Denver market,” said WealthPoint’s Managing Partner, Ryan Barradas. “Kevin brings a tremendous amount of respect within the Advisor community. His reputation and experience in the insurance industry put us in a position for sustained success.”

Kevin brings a wealth of experience in both employee benefits and life insurance. In 1980, Kevin founded McMahon & Co., an employee benefits consulting business, and successfully managed it for 30 years until he sold it. Since then, he founded KMM, LLC, an independent, client focused insurance practice. He has a proven track record of consistently identifying the best solutions for his clients, which he has demonstrated throughout his successful career. His core belief and determination to put his client’s needs first, are directly aligned with WealthPoint’s mantra, Know your story.

“I’m excited to take the next step in my career with WealthPoint,” says Kevin. “I look forward to joining a firm that has the staff, processes and resources in place to allow me to best service our entrepreneurial and affluent clientele.”

Government funding and tax extenders legislation affects investors

After weeks of negotiations, Congress reached agreement on a bipartisan bill to fund the government through September 2016.  Following are provisions of particular interest to investors.

The legislation makes permanent (including retroactively for 2015) some provisions that previously had expired every few years:

  • IRA / charitable contribution provision for account holders over age 70-1/2
  • Tax credit for research and development expenditures
  • Enhanced write-off of small business capital expenses under section 179

The legislation extends (including retroactively for 2015) other provisions:

  • Extension and phase out of bonus depreciation through 2019

The legislation includes a number of new provisions:

  • Repeals the forty-year-old prohibition on exports of domestically produced crude oil
  • Expands 529 plan qualifying distributions to include student computers and technology

The legislation delays sources of funding and government reimbursements under the Affordable Care Act:

  • “Cadillac tax”(40%)  imposed on high cost employer health plans delayed until 2020; thereafter tax becomes deductible
  • Medical device tax delayed until 2018
  • Annual fee on health insurance provider premiums written (“belly button tax”) delayed until 2018
  • Government reimbursements for insurance company losses limited to amounts collected from profitable insurers (reimbursement fund must be revenue neutral)

Of interest to financial advisors, the legislation:

  • Does not prevent the Department of Labor from finalizing and implementing the proposed IRA account fiduciary rules
  • Does not make significant changes to Dodd-Frank

 


Andrew H. Friedman is the principal of The Washington Update LLC and a former senior partner in a Washington, D.C. law firm.  He and his colleague Jeff Bush speak regularly on legislative and regulatory developments and trends affecting investment, insurance, and retirement products.  They may be reached at www.TheWashingtonUpdate.com.

The authors of this paper are not providing legal or tax advice as to the matters discussed herein.  The discussion herein is general in nature and is provided for informational purposes only.  There is no guarantee as to its accuracy or completeness.  It is not intended as legal or tax advice and individuals may not rely upon it (including for purposes of avoiding tax penalties imposed by the IRS or state and local tax authorities).  Individuals should consult their own legal and tax counsel as to matters discussed herein and before entering into any estate planning, trust, investment, retirement, or insurance arrangement.

Copyright Andrew H. Friedman 2015.  Reprinted by permission.  All rights reserved.

What is the Generation Skipping Transfer Tax?

Recently, M Financial posted a brief blog on the generation skipping transfer tax.  Please copy and paste the link below into your internet browser to read.Transfer Tax

http://mfin.com/m-intelligence-details/Understanding the Generation Skipping Transfer Tax

 

Life Insurance in a Rising Tax Environment

In March, we posted an article about investing in a rising tax environment.  We at WealthPoint thought the article in the link below would be a good follow up to that article.  Please take a moment to read through it.

Rising Tax Environment

Please click the link below.

WP_Marketing Intelligence Report – Life Insurance in a Rising Tax Environment

Life Insurance Basics

M Financial put together a piece on life insurance basics that we thought our readers would find educational.  Please take a moment to read through it and use it as a reference.

To view the file, select the link below:

WP_Life Insurance Basics

Life Insurance Policy

 

Common Life Insurance Mistakes

We at WealthPoint continually strive to provide insight to our clients and advisory community.  The attached piece was written by M Financial and discusses life insurance policy issues that have been encountered through the years.  Please click the link to review the white paper.

 

 WP_AMI_Common Life Insurance MistakesMistake

Importance of Life Insurance Policy Reviews

M Financial is constantly writing material for member firms to share with the advisor community and clients on the subject of life insurance.  WealthPoint is a member firm of M Financial and we wanted to make this article available.

WP_AMI_May 2014_Importance of Life Insurance Policy Reviews

Click on the link above to view the full article (PDF)

M Financial – A Step Ahead

M Member Firms are entrepreneurial, fiercely independent, and understand that consistently exceeding client expectations is the true measure of success. WealthPoint is a Member Firm of M Financial Group. Recently there was a write-up in Private Wealth Magazine about how M Financial has grown its ultra-affluent life insurance business since the 2008 crash by anticipating demand…

Private Wealth – M Financial: A Step Ahead

Click on the link above to view the full article (PDF)