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

21

           Income Capitalization

23

           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

           Creditor Protection

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

110

           Endowment Life Policies

111

           Survivorship Life Policies

111

           Single Premium Whole Life Policies

112

      Policy Options

113

           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

          Group Annuities

120

123

      Do Annuities Make Sense?

124

           Commission Surrender Periods

127

      An Estate and Retirement Planning Tool

127

      Annuity Facts

129

      Tax Deferred Status

131

      Time is Money

131

      Periodic Withdrawals

133

      Annuitization Options

135

      Annuity Models

137

           Accumulation Deferred Annuities

137

           Single Pay Immediate Annuities

138

           Variable Annuities

138

      Investment and Insurance Component

139

      The Variable Annuity’s Introduction

140

           Wrap-Around Annuities

141

           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

213

      Due Diligence

216

           Competency

216

           Understanding the Products

217

           Catastrophic Loss on a Large Scale

219

      Insurer Rating Companies

221

           Business Profile

223

           Financial Profile

223

           Operating Environment

224

           Market Brand & Position

225

      Lines in Business as a Risk Factor

226

      Insurer Assets

226

      Gross Underwriting Leverage

228

      Financial Flexibility

229

      Corporate Governance

231

      Special Rating Situations

231

      Insurers & Climate Change

232

      Continuing Education Requirements

235

An Agent's Personal Responsibility

238

Professional Representation

239

                Appointments

239

    Getting in the Door

241

            Making the Sale (Or Not)

243

                Product Over Commission

244

    Organization

245

    Full Disclosure      

246

    Product Replacement

246

    Policy Application

247

    Product Delivery

248

Yearly Reviews

249

Revisiting The Sale

250

     Does the Product Still Meet Their Goals

250

Errors & Omissions Insurance                

251

     Agent Liability Risk

251

Giving Our Clients What Is Due Them

255

     Criteria

257

                 Claims-Made Policies & Occurrence Policies

258

 Unfair Trade Practices Act / Legislative History

261

Insurance Activities Other than Sales

265

Financial Activities Other than Insurance

266

Nondiscrimination

266

           Limitation

267

           Definitions

267

           United States v Southeastern Underwriters Association

268

           Developing Legislation

271

                    Key Points

273

Is it Still Relevant?

275

        Section 4. Unfair Trade Practices Defined

280

        Section 5. Favored Agent or Insurer, Coercion of Debtor

307

        Section 7. Defined and Undefined Practices

308

        Section 8. Cease and Desist and Penalty Orders

309

        Section 9. Judicial Review of Order

310

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

310

        Section 12. Regulations

311

         Unfair Travel Discrimination

311

Life insurance companies classify countries into four categories

315

  “A” “B” “C” “D” Countries

316

         Favored Agent or Insurer

320

 

Thank you,

United Insurance Educators, Inc.