Designing Our Future

 

Table of Contents

 

Chapter 1: The Future is Nearer than You Think

5

      Knowledgeable Agents

5

      Acquiring Assets

6

      Estate Planning

7

      Wasted Dollars

9

      Wishing our Way Into Retirement

10

      Goal Setting

11

      Accurate Information Required

13

           Wealth Distribution

15

           Estate Control

15

      All Estates Need a Will

18

      Determining an Asset’s Value

22

           Income Capitalization

24

           Reproduction-Cost-Minus-Depreciation

24

           Comparative Sales

24

      Determining the Dollar Amount

24

Chapter 2: Will You Outlive Your Assets?

27

      Buying Power

27

      The Federal Reserve

28

      Permanent and Variable Portfolios

30

Chapter 3: Using Financial Tools

36

      The First Step: Record Keeping

37

      Establishing a Budget

38

      What Records and Where?

39

      Wills

44

Chapter 4: Trusts

47

      Defining a Trust

48

      Irrevocable and Revocable Trusts

50

           Irrevocable Trusts

50

           Revocable Trusts

52

           Present Interest Trusts

57

           Crummey Trusts

58

           Totten Trusts

59

           Life Insurance Trusts

59

           Grantor Retained Annuity Trusts (GRAT)

61

      Money Management Tool

62

           Probate Considerations

62

      Trust Language

70

           Trust Creator & Trust Types

71

           Trust Distribution for Minors

72

      Selecting Trustees

73

      Probate Protection

74

           Proper Trust Use

74

      Not Everyone Needs A trust

76

      Taxation

87

           Estate Taxes & Inheritance Taxes

88

           Bankruptcy Protection

89

           Medicaid Qualification

89

      Avoiding Probate Proceedings

90

           Estate Privacy

90

           Generation Skipping

91

           Asset Management, Conservation, and Distribution

92

      In Conclusion

95

Chapter 5: Life Insurance

96

      How Much is Enough?

97

      The Life Insurance Trust

102

      Term or Cash Value?

103

           Term Insurance

104

           Cash Value Insurance

106

           Whole Life Policies

107

           Universal Life Policies

109

           Variable Life Policies

109

           Endowment Life Policies

110

           Survivorship Life Policies

111

           Single Premium Whole Life Policies

111

      Policy Options

112

           Nonforfeiture Options & Disability Waivers

113

           Cash Values

114

      Insuring the Life of a Child

114

      The Agent’s Role

115

Chapter 6: Annuities

117

      Retirement Risks

117

      A Payment of Money

118

      Annuity History

120

      Do Annuities Make Sense?

124

           Commission Surrender Periods

126

      An Estate and Retirement Planning Tool

127

      Annuity Facts

128

      Tax Deferred Status

130

           Time is Money

131

      Periodic Withdrawals

132

      Annuitization Options

134

      Annuity Models

137

           Accumulation Deferred Annuities

137

           Single Pay Immediate Annuities

137

           Variable Annuities

137

      Investment and Insurance Component

138

      The Variable Annuity’s Introduction

140

           Wrap-Around Annuities

140

           CD-Like Annuities

141

      Retirement Advantages

141

      Estate Advantages

142

      Competition

146

      Investment Expenses and Loads

150

      Similarities

153

Chapter 7: Retirement Funding

157

      Pension Plan Players

158

      How Much Money Will You Need?

162

      Inflation

165

      Company Sponsored Pension Plans

167

      Defined Benefit Plans

169

      Defined Contribution Plans

172

      401(k) Plans

175

      Collecting Pension Funds

176

      At Retirement

183

Chapter 8: Other Financial Options

188

      Individual Retirement Accounts (IRA)

188

      Keogh Plans

189

      Simplified Employees Pension Plan

190

      Incorporation

191

      S-Corporations

196

      Estate Planning Tools

197

      When Death Occurs

200

Chapter 9: Ethics and Other Myths

209

      Industry Knowledge

212

      Due Diligence

216

           Understanding the Products

217

           Catastrophic Loss on a Large Scale

219

      Insurer Rating Companies

221

           AM Best’s Ratings

222

                Strength Ratings

222

                Quantitative Evaluation From A.M. Best

224

Qualitative Evaluation By A.M. Best

226

                Understanding the Rating System

227

                Performance Modifiers

230

                Affiliation Modifiers

230

                Ratings “Not Assigned” Categories

231

           Continuing Education Requirements

234

Agents Personal Responsibility

236

Professional Representation

238

                Appointments

238

Getting in the Door

239

            Making the Sale (Or Not)

242

            Product Over Commission

243

Organization

244

Full Disclosure      

244

Product Replacement

246

Product Delivery

247

Yearly Reviews

248

Revisiting The Sale

248

Does the Product Still Meet Their Goals

249

Errors & Omissions                    

249

Agent Liability Risk

249

Giving Our Clients What Is Due Them

253

Criteria

256

           Claims-Made Policies & Occurrence Policies

256

           Unfair Trade Practices Act

259

Legislative History

259

Insurance Activities Other than Sales

264

Financial Activities Other than Insurance

264

Nondiscrimination

265

           Limitation & Developing Legislations

266

           Key Points

268

Is it Still Relevant?

271

Redlining

273

           Section 5. Favored Agent or Insurer, Coercion of Debtor

275

           Section 7. Defined and Undefined Practices

276

Section 8. Cease and Desist and Penalty Orders

277

           Section 9. Judicial Review of Order

278

Section 11. Penalty for Violation of Cease-and-Desist       

278

           Section 12. Regulations

279

           Defining Unfair Trade Practices

279

Section 4: G. Unfair Discrimination

281

Rebates

285

Marketing & Performance Records

285

Failure to Maintain Complaint Procedures

287

Misrepresentation on Insurance Applications

287

Unfair Financial Planning Practices

288

Failure to File or Certify LTC Sales

289

Failure to Provide Claims History

289

Favored Agent or Insurer

290

 

 

 

United Insurance Educators, Inc.

8213 – 352nd Street East

Eatonville, Washington 98328-8638

(253) 846-1155