Generational Split-Dollar (“GSD”) White PaperJuly 10, 2019
As discussed in this memorandum, a properly structured and administered Generational Split-Dollar (“GSD”) plan may provide the following key benefits: Potential estate tax savings, pass significant wealth (in the form of life insurance benefits) to younger generations and tax free growth of the cash surrender value of the policy.
Non-Equity Split-DollarJune 5, 2019
In addition to purchasing new second-to-die policies inside a new ILIT, you may also wish to consider entering into a split-dollar arrangement with the ILIT. One of the principal benefits of this technique is that the gift between yourself and the ILIT as a result of you paying the premiums pursuant to a split-dollar arrangement should be considerable less than if you were to just gift cash directly to the ILIT allowing the ILIT to pay the premiums itself.
Case Study: Mr. ExecutiveMay 9, 2019
Mr. Executive had a close relationship with a high-end life insurance and estate planning firm from whom he acquired a recommendation, which included stacking multiple life insurance policies across six different carriers. Mr. Executive’s estate planning attorney encouraged him to obtain a second opinion from TDC Life, seeking our recommendations for improvements to the other adviser’s strategy.
Case Study: Multi-Life Guaranteed Standard IssueApril 12, 2019
Situation: National attorney firm with over 250 of the firm’s partners earning more than $1.2 million. The firm’s current Group LTD and Supplemental IDI Plan provided a $60,000/month benefit. With such a robust foundational plan already in place, the firm sought to provide a voluntary disability insurance plan as an additional benefit for those partners who were underinsured. Our advisor sought to design a solution to provide a 60% income replacement ratio for those partners.
Succession: Are You Ready?March 14, 2019
A recent survey of advisors showed that 83% consider their business part of their retirement plan. However, 65% of those advisors have no succession plan in place and 89% have not appraised the value of their business. Couple this with an aging agent population trend and the result is an overwhelming need for many advisors to evaluate their succession plan. AdvisorNews’ John Hilton highlights several key succession planning strategies advisors should consider when planning for their ideal transition.
Obtaining The Most Favorable Medical Exam ResultsMarch 7, 2019
A life insurance exam is typically quick and straight forward. Please be prepared to go through a medical history questionnaire, blood draw, urine sample, height weight and sometimes a resting EKG. The exam takes 30 minutes for a basic exam and allow another 30 minutes if an EKG is required.
Mr. Monte CarloMarch 6, 2019
Situation: Mr. Monte Carlo is a business owner client of TDC who wants to retire. To feel more comfortable making this life decision, Mr. Monte Carlo requested TDC evaluate the income available from his portfolio through retirement. His ultimate goal is to leave $6 million to his kids upon his death. Mr. Monte Carlo is worried that he would not have enough assets to support his current lifestyle through retirement and accomplish his goal of a $6 million legacy for his children.
Mr. Family Business OwnerFebruary 15, 2019
Situation: Mr. (57 years old) and Mrs. (56 years old) Family Business Owner purchased a $5M Survivorship Universal Life (SUL) policy paying an annual premium of $48,000 a year. The policy has an Option 2 death benefit meaning the death benefit increases as the policy’s cash value grows. When purchased, the agent showed the cash value performing at a rate of 8% annually.
Key Person Disability Protection (Video and Case Study)January 24, 2019
A private equity firm lost a CEO of one of their key portfolio companies to a disability after he suffered a stroke. While the firm had purchased key person life insurance, yet this coverage did not protect them in the event of the stroke. They incurred a significant financial loss as the CEO can no longer perform his duties.