Chubb Life receives 2017 Most Innovative Product Award at the 19th “Insurance Faith, Hope & Love” Award in Taiwan

TAIPEI, Taiwan, Sept. 26, 2017 /PRNewswire/ — The Risk Management, Insurance and Finance Foundation in Taiwan honored Chubb Life (Chubb Tempest Life Reinsurance Limited, Taiwan Branch) with the 2017 Most Innovative Product Award at its 19th “Insurance Faith, Hope & Love” Gala Award Event  on 7th August.

The “Insurance Faith, Hope & Love” Awards recognize individuals’ and companies’ contributions to advancing the insurance industry, exemplifying the highest quality of service, innovation, and professionalism of insurance in Taiwan. This award recognized Chubb Life for its innovative investment-linked product “Jan-Liue-Ying-Jia VUL”, according to criteria such as creativity of product design, value to customers, distribution, product performance and claims ratio.

Chubb Life’s “Jan-Liue-Ying-Jia VUL” is an investment-linked insurance product which protects and manages customers’ risks and wealth leveraging the special CAPE® Ratio¹ developed by Nobel  Prize Winner Professor Robert Shiller. Chubb Life is the first insurer in Taiwan, and second globally, to launch an investment-linked insurance product leveraging the CAPE® Ratio as a reference indicator for its investment strategy. Chubb Life is also the only exclusive insurer in Taiwan to be officially licensed to use the CAPE® Ratio methodology of Professor Robert Shiller’s “Sector CAPE® Index Family”.

The “Select, Attack, Defend” strategy of this product provides a controlled mechanism to reduce investment risk and stabilize the financial return of the product. The protection, risk control, and market-sensitive nature of the product, differentiate Chubb Life with the rest of the market.

Chubb Life is dedicated to crafting a comprehensive array of quality life insurance products and services,” said Kristine Ung, Country President of Chubb Life in Taiwan. “We will continue to craft innovative insurance solutions to meet the changing financial protection and risk management needs of our customers in Taiwan.”

About Chubb Life in Taiwan

Chubb is the world’s largest publicly traded property and casualty insurance company. With operations in 54 countries, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London and other locations, and employs approximately 31,000 people worldwide. 

Chubb Life, the life insurance division of Chubb, operates in 30 countries around the world. In Asia, Chubb Life operates in Hong Kong, Indonesia, Korea, Taiwan, Thailand and Vietnam, and participates in a joint-venture in China. Chubb Life has been in Taiwan since 2005, and launched its Offshore Insurance Unit business in 2016. To meet the financial protection and risk management needs of its broad range of customers, Chubb Life in Taiwan (Chubb Tempest Life Reinsurance Limited, Taiwan Branch) offers a range of life insurance and wealth planning solutions through banks and brokers.

Additional information can be found at:

Media Contacts

Madeline Chang

Chubb Tempest Life Reinsurance Limited, Taiwan Branch
Manager, Marketing and Communications
+886 2 81611988 #8801
rel=”nofollow”>Madeline.Chang@chubb.com

Sarah Tam

Chubb Life
Head of Communications
+852 2185 0207   
rel=”nofollow”>Sarah.Tam@chubb.com

¹ “CAPE®” are trademarks of Barclays Bank PLC or its affiliates (“Barclays”) and have been licensed solely for use by the Licensee in connection with the operation of the “Chubb Tempest Life – Fuh Hwa US and European value investment–acc / Chubb Tempest Life-Fuh Hwa US and European value investment-mon. dist”. The “Chubb Tempest Life – Fuh Hwa US and European value investment–acc / Chubb Tempest Life-Fuh Hwa US and European value investment-mon. dist” are not sponsored by, endorsed, sold or promoted by Barclays, and Barclays makes no representation regarding the advisability of investing in the “Chubb Tempest Life – Fuh Hwa US and European value investment–acc / Chubb Tempest Life-Fuh Hwa US and European value investment-mon. dist”.

SOURCE Chubb Life

American National Surpasses $100 Billion In Life Insurance In Force Nasdaq:ANAT






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| Source: American National Insurance Company


GALVESTON, Texas, Sept. 25, 2017 (GLOBE NEWSWIRE) — American National Insurance Company (American National) is proud to announce that it has reached a major milestone by surpassing more than $100 billion in life insurance in force. This achievement marks the culmination of more than a century devoted to the values of integrity and financial strength.

$100 billion is the total value of all life insurance policies American National has issued that are currently active. It represents 112 years of service to more than 5 million policyholders as well as valued shareholders.

American National was founded by W.L. Moody Jr. in 1905 with 10 employees, $100,000 in capital and the vision of becoming a leading provider of financial products and services for current and future generations. By focusing on the ideals of strong management and prudent investment, American National steadily built its business, reaching $1 billion in life insurance in force by 1943, $10 billion by the mid-1960s and $50 billion just before 2000. The pace picked up quickly from there, reaching $75 billion in 2013 and $90 billion in 2015.

Now, with more than 3,000 employees, plus a network of agents and distribution partners in all 50 states and Puerto Rico, American National looks forward to another century of excellent service to our policyholders and the achievement of many more milestones along the way.

About American National
American National Insurance Company (American National), headquartered in Galveston, Texas, was founded in 1905 and is licensed in all states except New York. American National and its subsidiaries offer a broad line of products and services, which include life insurance, annuities, health insurance, credit insurance, pension products, and property and casualty insurance for personal lines, agribusiness and certain commercial exposures. American National companies operate in all 50 states. For corporate and investor relations information, please visit American National’s website at www.AmericanNational.com.

CONTACT: Jason Broussard,
Assistant Vice President, Corporate Office
(409) 621-7809
AMERICAN NATIONAL
One Moody Plaza  I  Galveston, TX 77550
Jason.Broussard@AmericanNational.com 




American Equity Investment Life Insurance Company Announces Transition of National Guard and Fire Fighter Group Insurance to Armed Forces Benefit Association

WEST DES MOINES, Iowa & ALEXANDRIA, Va.–(BUSINESS WIRE)–American Equity Investment Life Insurance Company (“American Equity”), a
leading provider of fixed index annuities, and Armed Forces Benefit
Association (“AFBA”) today announced that they will partner to
transition American Equity’s National Guard and Fire Fighter group life
insurance coverage to AFBA effective January 1, 2018.

“We are excited to work with AFBA. With its long-standing commitment to
service members and first responders, we are confident AFBA is the ideal
partner as we transition our group life insurance business,” said John
Matovina, Chief Executive Officer of American Equity. “We have been in
the National Guard and Fire Fighter business since day 1 at American
Equity. Supporting those who serve our country and communities is, and
will continue to be, part of our culture and identity. As our annuity
business continues to grow, we believe our service members and fire
fighters will be well-served by an organization strategically focused on
providing products and services meeting their needs.”

American Equity currently insures over 65,000 National Guard members and
over 13,000 fire fighters serving in 106 locals throughout the United
States. AFBA provides life insurance to over 140,000 National Guard
members, retirees and family members and over 130,000 First Responders,
retirees and family members.

General Ralph E. “Ed” Eberhart, USAF (Ret.), Chairman and President of
AFBA, added “For 70 years, AFBA has been committed to serving those who
serve this great nation. Our focus is on providing life insurance
products and services tailored for service members and first responders.
American Equity has been the pathfinder in serving the citizen Soldiers
and Airmen of our nation and we are honored to work with their National
Guard and Fire Fighter customers to provide excellent life insurance
solutions and service.”

ABOUT AMERICAN EQUITY
American Equity Investment Life
Insurance Company® is a full-service underwriter of fixed annuity and
life insurance products with a primary emphasis on the sale of index and
fixed rate annuities. Headquartered in West Des Moines, Iowa, American
Equity Investment Life Insurance Company is committed to providing
products with integrity as well as superior service to the agents they
partner with and their policyholders. For more information, please visit www.american-equity.com.

About Armed Forces Benefit Association
The Armed Forces
Benefit Association (AFBA) was established in 1947 in the basement of
the Pentagon with the support of the General of the Army, Dwight D.
Eisenhower to ease the strain on military members and their families
who, at the time, could not purchase life insurance that would pay a
death benefit if the member was killed in combat. Today, headquartered
in Alexandria, VA, AFBA continues to honor its mission, in war and
peace, promoting the welfare of its members as a market leader providing
high-quality, affordable life insurance and other benefits to those who
serve this great nation, including members of the uniformed services,
first responders, government employees, and their families. AFBA has
more than 450,000 members with $36 billion of life insurance in force
and has paid nearly $2 billion of claims paid since inception. AFBA
products are underwritten by its affiliate, 5Star Life Insurance Company
(a Baton Rouge, Louisiana domiciled company).

Shopping for Life Insurance with PolicyGenius

Finding the best life insurance policy is not something that should be taken lightly.  Ensuring you take care of your loved ones in the event of a tragedy is as crucial as any personal finance decision.  PolicyGenius offers an online search engine designed specifically to help you find an affordable term life insurance policy.

I’m going to show you just how easy it is to use in this review. The first thing you can do on PolicyGenius is figure out just how much life insurance you need.  They have a very handy calculator that estimates your families future needs based on the answers of a few simple questions.

  1. What are your plans for your children’s education?
  2. How much is your current income?
  3. How much debt do you currently have?
  4. How long will it take you to pay off your current debt?

After a few minutes of answering questions about your finances, PolicyGenius spits out the amount of life insurance you’re likely to need.  It will look something like this: What you see above is an estimation of my financial situation.  I have two children under the age of four and a mortgage with credit card debt.  With limited savings and liquid assets, PolicyGenius proposed a term life insurance policy for $1.93MM.  From here, PolicyGenius allows me to take the next step, and complete an application.  The application includes the term and the amount. It also provided me a list of available underwriters.

PolicyGenius Application Process

Policy Genius asks fairly general questions during the application process.  Do you have a family history of heart disease or mental illness?  Have you ever been diagnosed with high cholesterol?  What is your height, weight, and age?  The application from start to finish takes all of three minutes. If you’re quick with your answers, you can complete it in under two minutes.  Using the estimation above, PolicyGenius will provide you a plethora of available insurers, each showcasing the monthly cost.  The cheapest plan will be highlighted at the top of your search along with the second cheapest plan. When looking at the different policies available to you, you may want to adjust your coverage amounts.  You can do this by looking at the left sidebar of the page.  You’ll be able to toggle the coverage amount, the length of term and whether or not you want to pay monthly or annually.  Paying once a year will save you money on your overall premium.  For example, the numbers you see above are for $2MM in coverage and a term of 30 years.  If I only wanted a 10-year term for the same coverage amount, my monthly cost would only be $41.

PolicyGenius Resources and Help

If you’re having trouble deciding on the right insurer, PolicyGenius has amassed a bevy of information on each and every policy.  When you select “More about this Insurer” underneath the insurer’s name, you’re taken to a page with a LOT of information.  This page includes reviews, unique features, and a full video review on the company you’ve selected, created by PolicyGenius.  For example, they created this video to discuss AIG:

Completing the Application

After selecting the policy you want, on the terms you want, you have one final step to submit your application.  The last step includes basic contact information such as mailing address, phone number and email address.  30 seconds later, you’re ready to complete your application.  Within 48 hours, you can expect to hear from the insurance provider you have selected.  PolicyGenius will approve your application and ask for paymetn or ask for additional information.  That generally means one of two scenarios:

  1. Your application requires a physical to be approved.  This is what happened to me when I submitted an application.  The physical is scheduled by the insurance underwriter, and takes about 10 minutes.  You can have someone come to your home, or go to a local office.  Physicals include blood samples, urine samples and a check of your blood pressure.
  2. Your application needs fixing.  For some reason, the information you entered was flagged and step by step and agent will ask you to fill out a new application over the phone.  Sometimes this takes care of the problem, other times you may need to select a new provider.

You can create an account with PolicyGenius after completing an application.  This account will allow you to track your application status, communicate securely with your agent and provide you an insurance to-do list should more information be required. If you ever get lost along the way, PolicyGenius does a nice job of offering assistance.  They have a live chat feature that follows you around the site, as well as a phone number plastered on the top right of the screen.  That number is 1.855.695.2255.

Call them anytime to ask for help, and they’ll give it. PolicyGenius also has other types of insurance available, including Health Insurance, Renters Insurance and Disability Insurance.  Their quote engine isn’t quite as refined for these products as it is for life insurance but the quality of results is just as good.

Be Responsible About Your Family’s Future

Sitting down and planning out your death is not fun.  Quite frankly, it’s eerily unsettling to know that you’re plugging hard earned money away on something you’ll pray you never take advantage of.  But ensuring the security of your family should the worst happen is 100% necessary.  Take the responsible action and consider what happens to your family if you’re not around.  That might mean a hard look at the quality life insurance policies that PolicyGenius has to offer.

Topics: Life Insurance

American National Surpasses $100 Billion In Life Insurance In Force

GALVESTON, Texas, Sept. 25, 2017 (GLOBE NEWSWIRE) — American National Insurance Company (American National) is proud to announce that it has reached a major milestone by surpassing more than $100 billion in life insurance in force. This achievement marks the culmination of more than a century devoted to the values of integrity and financial strength.

$100 billion is the total value of all life insurance policies American National has issued that are currently active. It represents 112 years of service to more than 5 million policyholders as well as valued shareholders.

American National was founded by W.L. Moody Jr. in 1905 with 10 employees, $100,000 in capital and the vision of becoming a leading provider of financial products and services for current and future generations. By focusing on the ideals of strong management and prudent investment, American National steadily built its business, reaching $1 billion in life insurance in force by 1943, $10 billion by the mid-1960s and $50 billion just before 2000. The pace picked up quickly from there, reaching $75 billion in 2013 and $90 billion in 2015.

Now, with more than 3,000 employees, plus a network of agents and distribution partners in all 50 states and Puerto Rico, American National looks forward to another century of excellent service to our policyholders and the achievement of many more milestones along the way.

About American National
American National Insurance Company (American National), headquartered in Galveston, Texas, was founded in 1905 and is licensed in all states except New York. American National and its subsidiaries offer a broad line of products and services, which include life insurance, annuities, health insurance, credit insurance, pension products, and property and casualty insurance for personal lines, agribusiness and certain commercial exposures. American National companies operate in all 50 states. For corporate and investor relations information, please visit American National’s website at www.AmericanNational.com.

CONTACT: Jason Broussard,
Assistant Vice President, Corporate Office
(409) 621-7809
AMERICAN NATIONAL
One Moody Plaza  I  Galveston, TX 77550
Jason.Broussard@AmericanNational.com 

How life insurance helps you fulfill your financial goals



Navneet Dubey

Moneycontrol News

Life insurance is not limited to providing protection only, but can also act as an important tool for financial planning and meeting one’s life’s goals. These goals may be related to child’s education, wedding planning, buying of home or car, retirement planning for self, etc.

“Term Plans, which are pure risk policies without a savings element, can be used to protect one’s financial goals in conjunction with a well-structured and disciplined SIP-based savings plan. In the event of an unfortunate eventuality, the policy proceeds may be reinvested by a trustworthy appointee for the time remaining until the goal date, thereby ensuring that uncompromisable goals such as your child’s education get fulfilled even in your absence,” said Aniruddha Bose, Chief Information Officer, FinEdge.

Let us have a look at the insurance plan suitable for different life stages

When you plan to get married

Term insurance should be in your financial portfolio when you plan to get married. The earlier you buy the lesser premium you pay for the same cover. A term cover would protect your spouse’s financial need should anything unfortunate happens to you.

“The minimum age to buy a term plan is 18 years and the maximum could go up to 65 years. The best time is to buy when you are in the prime of your health and career, as with increasing age the risk factors go up resulting in higher premiums. The basic calculation is done based on your present salary, and the sum assured is usually 15 to 20 times of your annual income,” said Santosh Agarwal- Head of Life Insurance, Policybazaar.com.

When you become a parent

The purpose of term cover is to protect your family, especially if you are the only earning member in your family and have dependents. Also if you have liabilities such as home loans or any other kind of payments, you need to buy a term plan so that in case of your death the burden doesn’t fall on your family. A term plan with riders can also help you if you meet any unfortunate accident or end up with any kind of disability due to any unforeseen circumstance.

On the other hand, if you are planning for child education, you may go for Unit Linked Insurance Plans (ULIPs) also. It offers flexibility to choose the fund option while buying it to link it with a desired financial goal. You can even change the life cover as when required which in turn help you to change your premium amount.

“The best time to invest for a child’s future is when they are born or within a year of their birth so that you have next 18-20 years to save up a bigger amount for their higher education. For example, if your child is an-year-old and you start investing Rs 10,000 per month from today for the next 18 years, after maturity you will receive around Rs 38 Lakhs which you can use for college fees. A few child plans that you can check out are IPru Smart Kid Solution from ICICI Prudential, Sampoorn Nivesh – classic waiver benefit from HDFC Life, Aegon Life iMaximize Plan- Option II and Future Gain-WOP (waiver of premium) from Bajaj Allianz. The final amount is calculated assuming the inflation rate as 4 percent per year, so it will turn out to be a sufficient fund for your child’s education,” said Agarwal.

When you are nearing retirement

If you want financial independence even after your retirement, you need to plan well in advance. Planning should be done in such a way that you can easily meet your medical expenses and living expenses. Also, make sure that post-retirement you have protected your wealth so that you may not lose what you gained during pre-retirement. Try and invest in equities to get high returns during early working life and as you move towards retirement age, transfer the holdings to debt ULIPs to safeguard the maturity corpus from any unfavourable market movements.

Ankur Agrawal, Category Head, Life Insurance said that normally, ULIP plans come with an end date or maturity date like endowment plans. However, there are ULIP Pension plans in the market where you can have a monthly income scheme.

“From a retirement perspective, the best option is to take a long-term ULIP plan. This works similar to a mutual fund. You pay monthly and accumulate your corpus that you can use at the end of the term. So, if you are in your 30s, you could take a 20-30 year ULIP. The corpus that gets accumulated at the end of the period can be used to buy an annuity that can give you a monthly income. The advantage of such a ULIP is that it will give you equity returns, so they will be higher in the long term,” said Agrawal.

Our View: Don’t bury life insurance company records; override governor’s veto – Opinion – Journal Standard

The Illinois Legislature should override Gov. Bruce Rauner’s partial veto of House Bill 302, which requires life insurance companies to open their records back to 2000 so the state treasurer can audit them in search of unclaimed death benefits.

The “Life Insurance Reform Act” authorized the treasurer to bring in outside auditors to help in the search.

If you are tempted to think this is not a big problem, you are wrong.

State Treasurer Michael Frerichs, chief backer of the bill, points out the scope of the rip-off.

“Currently, some life insurance companies do not pay death benefits when they know, or should have known, a customer died,” Frerichs said in a news release. “Between 2011 and 2015, the treasurer’s office audits found more than $550 million in death benefits that were not paid to grieving families in Illinois.”

The bill would have allowed the treasurer’s office to contract outside auditors to comb through insurance company records in search of unclaimed death benefits going back to 2000.

The governor’s veto banned the practice, citing the expense and saying that money used to hire outside auditors should be used to pay down the state’s massive pension debt.

Frerichs counters “that unpaid life insurance benefits are considered unclaimed property and returning unclaimed property to owners is among the duties of the Illinois state treasurer. Illinois holds unclaimed property until the items or funds are claimed by the owner or heir.”

Thanks to the governor’s veto, Illinois is the only state that allows insurance companies to bury records of unclaimed benefits.

We agree with the state treasurer. The override is a must.

It will take a three-fifths vote in both the House and the Senate to override the governor’s partial veto. Our fervent hope is that lawmakers muster the courage to help Frerichs’ office do its job properly by tracking down unclaimed property and returning it to its rightful owners instead of allowing insurance companies to keep what at its essence is stolen property.

Frerichs says it isn’t just life insurance death benefits that are at stake. The governor’s partial veto also prevents the treasurer’s office from searching bank and business records to look effectively at the books of large banks, “such as Wells Fargo to confirm it did not inappropriately keep funds from bank customers, or the ability to look at Sprint and Radio Shack to confirm each has paid out all rebate checks issued as an incentive to make a purchase.”

Call your legislators today. Urge them to override Gov. Rauner’s partial veto of House Bill 302.

Our View: Don’t bury life insurance company records; override governor’s veto – Opinion – Rockford Register Star

The Illinois Legislature should override Gov. Bruce Rauner’s partial veto of House Bill 302, which requires life insurance companies to open their records back to 2000 so the state treasurer can audit them in search of unclaimed death benefits.

The “Life Insurance Reform Act” authorized the treasurer to bring in outside auditors to help in the search.

If you are tempted to think this is not a big problem, you are wrong.

State Treasurer Michael Frerichs, chief backer of the bill, points out the scope of the rip-off.

“Currently, some life insurance companies do not pay death benefits when they know, or should have known, a customer died,” Frerichs said in a news release. “Between 2011 and 2015, the treasurer’s office audits found more than $550 million in death benefits that were not paid to grieving families in Illinois.”

The bill would have allowed the treasurer’s office to contract outside auditors to comb through insurance company records in search of unclaimed death benefits going back to 2000.

The governor’s veto banned the practice, citing the expense and saying that money used to hire outside auditors should be used to pay down the state’s massive pension debt.

Frerichs counters “that unpaid life insurance benefits are considered unclaimed property and returning unclaimed property to owners is among the duties of the Illinois state treasurer. Illinois holds unclaimed property until the items or funds are claimed by the owner or heir.”

Thanks to the governor’s veto, Illinois is the only state that allows insurance companies to bury records of unclaimed benefits.

We agree with the state treasurer. The override is a must.

It will take a three-fifths vote in both the House and the Senate to override the governor’s partial veto. Our fervent hope is that lawmakers muster the courage to help Frerichs’ office do its job properly by tracking down unclaimed property and returning it to its rightful owners instead of allowing insurance companies to keep what at its essence is stolen property.

Frerichs says it isn’t just life insurance death benefits that are at stake. The governor’s partial veto also prevents the treasurer’s office from searching bank and business records to look effectively at the books of large banks, “such as Wells Fargo to confirm it did not inappropriately keep funds from bank customers, or the ability to look at Sprint and Radio Shack to confirm each has paid out all rebate checks issued as an incentive to make a purchase.”

Call your legislators today. Urge them to override Gov. Rauner’s partial veto of House Bill 302.

Danica Patrick is the face of Life Insurance Awareness Month

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Americans die with an average debt of $62,000. Here are some ways to manage that debt before it’s too late.
USA TODAY

Most people don’t think about life insurance until they really need it. But when your day job involves driving over 200 miles per hour caged inside concrete walls, financial planning becomes a serious priority.

For Danica Patrick, one of the few female drivers competing at NASCAR’s top level, having life insurance is just another part of being “financially fit.”

“You prepare your body for life and you prepare your mind for life, why wouldn’t you prepare your money for life?” she asks.

For the second year in a row, Patrick is the face of Life Insurance Awareness Month.

The annual campaign, which runs each September by the non-profit organization Life Happens, seeks to educate people about financially protecting themselves and their loved ones if the worse should happen.

“In this dangerous sport of racing, tragedy can happen,” Patrick says. “It’s a good reason to be prepared.”

Although taking out a life insurance policy is common practice for race car drivers, Patrick has a family connection to the cause.

Both of her parents lost their fathers at a young age and neither had life insurance.

“They ended up having to sell the family farm as a result,” she says. “It just creates another challenge, having to argue about money. That’s nothing anybody really wants to do.”

Patrick’s parents always encouraged her to be financially responsible, and now she’s helping others do the same.

Without life insurance, one in four households would have immediate difficulty paying their bills if their primary wage earner died, according to the Life Insurance Barometer Study conducted by Life Happens in 2017.

Despite this, the study found that more than 40% of Americans still don’t have life insurance.

More: 5 things single parents need to consider about life insurance

More: Term vs. whole life insurance: Which is best for you?

More: Impending death of the life insurance medical exam

“Most people put off things they don’t know how to do,” Patrick says. “Think about how awful it will be for those around you to then have to figure it all out.”

Popular misconceptions about the industry often deter people from purchasing life insurance, according to Marvin Feldman, CEO and president of Life Happens.

“They find the process of buying life insurance to be very complicated and very invasive,” Feldman says.

Although there are still improvements to be made, Feldman says the process of buying life insurance is no longer the maze it once was. Life Happens has an online calculator that can help determine how much coverage people need.

Depending on your health, you can get a policy without a medical exam in under a week in some cases, according to Feldman.

Even if you aren’t in a dangerous line of work like Patrick’s, Feldman says the campaign’s message still rings true.

For Patrick, life insurance is all about peace of mind.

Her message of being financially prepared for the future is especially relevant as she moves onto the next stage in her career after announcing last week that she will be leaving Stewart-Haas racing.

“Things are changing in my world,” Patrick says. “My team is working on what comes next for me.”

“It’s always a good idea to be prepared, especially when it comes to money,” she says.

Follow N’dea Yancey-Bragg on Twitter @NdeaYanceyBragg

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Are the paparazzi making you miserable? Danica Patrick shows you how to get away in this funny commercial for the Can-Am Spyder “escape vehicle.”

 

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Things life insurance companies don’t want you to know

Irv Blackman, Columnist
Published 7:37 a.m. ET Sept. 24, 2017

Why is life insurance such a powerful weapon (strategy) that it enriches my clients at the expense of the IRS? My brilliant law school professor, who taught advanced estate planning, had this answer: He said, “Life insurance – properly structured – in estate planning is the bedrock of beating up the IRS; legally.”

Unfortunately, the life insurance law is complex and if you don’t use the law properly, it will eat your lunch.

The rest of this article shows you how to take advantage of the law.

More: Tax Secrets: We win; tax court clobbers IRS

Following are three basic facts about life insurance premiums you must burn into your mind:

Premiums become significantly higher as you age. (The lesson – invest in life insurance as soon as you can afford it.)

Smokers are punished with high premiums.

Second-to-die insurance (usually on a husband and wife) is a true bargain, receiving about a 40 percent discount.

Comment: If you don’t intend to keep the policy to the day you die, don’t buy it in the first place.

We have learned that real-life examples are the best way to teach how to get a life insurance victory. As you read the examples, pick out the one (or more) that fits your personal circumstances.

That dull old stuff – life insurance – is the tax hero in every example.

Example #1. Life insurance no longer needed on husband.

Cal (59) and Cindy (55) are married. Cal has insurance on his life: death benefit of $788,000; cash surrender value (CSV) of $213,000; and an annual premium of $9,000. They are worth over $9.5 million (mostly cash or cash-like investments). Cal earns more each year than they spend: so don’t need life insurance on Cal.

My network insurance consultant used the $213,000 CSV, continuing the $9,000 annual premium to purchase a second-to-die policy with a $1.6 million death benefit; almost double the amount of the old policy. Powerful!

Example #2. Using life insurance as a tax-advantaged investment.

Wendy, a 76-year-old widow, is worth over $12 million, mostly liquid investments. Her investment income far exceeds her lifestyle costs. Following is a wealth-increasing, two-step strategy.

Step #1. Wendy paid $2 million for a single premium immediate annuity (the insurance company will pay Wendy the same dollar amount every year for as long as she lives).

Step #2. Wendy bought a $5.6 million insurance policy (actually owned by an irrevocable life insurance trust, so the death benefit will go to her kids tax-free). How are the premiums paid?

The annuity payments pay the policy premiums. We turned $2 million (which would have been subject to estate tax) into $5.6 million (tax-free); guaranteed. Awesome!

Example #3. You have an old policy and are no longer paying premiums out-of-pocket.

I saved the best for last. If you have a so called “paid-up-policy” (no longer writing checks to pay premiums), for sure you are getting ripped off… can be either a single-life policy or a second-to-die policy.

What follows is a classic example: Alfred (71) had a policy with a death benefit of $4.2 million, with a CSV of $1.7 million. He no longer pays out-of-pocket premiums because the

annual earnings on the CSV are large enough to pay the premiums. Alfred simply traded in the old policy (a tax-free transaction) for a new policy with a huge $7 million death benefit (all tax-free). Wow!

How can one or more of those insurance company secrets benefit you? I twisted my insurance guru’s arm into agreeing to audit the insurance policies of readers of this column without any obligation. Or maybe you are just looking for a new policy.

 

Either way, send me a fax (on your letterhead if in business) at 847-227-9008 or email me (irv@irvblackman.com) just three bits of information for each policy – (1) name of insurance company; (2) death benefit; and cash surrender value. Include all of your phone numbers: business, cell and home. Mark “Eagle Life Insurance” on your fax or email.

Or if you have a question involving your life insurance, call me (Irv) at 847-803-7796.

 

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