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Owner Bene 2008

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Sample presentations in Case Management training camp

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Owner Bene 2008

  1. 1. 8
  2. 2. 7
  3. 3. 6
  4. 4. 5
  5. 5. 4
  6. 6. 3
  7. 7. 2
  8. 8. Welcome To our class
  9. 9. OWNER
  10. 10. WHAT IS POLICY OWNER? Applicant  Payer  Exercise any rights contained in the policy  Why would a person own a policy on someone else’s life?  Owner pays for the policy  Ability to make changes to the policy  Avoid tax consequences  What if PI calls and asks for a change of beneficiary, can they do  that? No, only the owner  Who can borrow cash values, Owner or PI?  Owner  >> 0 >> 1 >> 2 >> 3 >> 4 >>
  11. 11. OTHER THAN THE INDIVIDUAL, WHO OR WHAT CAN BE AN OWNER? •Business •Trust party Owner (ex. charitable orgs) •Third Can more than one individual own a policy? Is there a limit? No limit Charitable Organization owning a life insurance policy on someone’s life? Why would anyone do this? Financial loss >> 0 >> 1 >> 2 >> 3 >> 4 >>
  12. 12. WHAT SIGNATURE REQUIREMENTS DOES THE CARRIER REQUIRE? the insured is the owner – Insured signature •If •Individual other than the insured is the owner – The insured and other individual signature • If the insured is a minor – The insured and the insured’s parent or guardian signature is required (if PI is under 15 no signature is required). •If a trust is the owner – The insured and the trustee •If a Business is the owner – The insured and the officer of the company (title must follow the signature) What happens if PI and Owner are in different states? >> 0 >> 1 >> 2 >> 3 >> 4 >>
  13. 13. WHAT IS THE UNDERWRITER LOOKING FOR ON BUSINESS OWNERS? What is the purpose of the insurance?  To identify scenario What types of business policies they are?  Key person, Buy/Sell, Loan Collateral Why do we need the business finances?  Measure risk Why the underwriter is looking for the history of the  business? Financial stability >> 0 >> 1 >> 2 >> 3 >> 4 >>
  14. 14. NAMING THE TRUST AS THE OWNER What is ILIT? & Why is the ILIT important?  Irrevocable Life Insurance Trust What makes (ILIT) different from the others? Can’t change, amend, rescinded, etc. Revocable  Living Trust  Testamentary  **VTA form is needed on all Irrevocable Trust applications. >> 0 >> 1 >> 2 >> 3 >> 4 >>
  15. 15. IF THE TRUST IS THE OWNER? It must be the original owner. (listed on application not  added during underwriting and amended for) Application has to be signed by the trustee after the trust  date. Hold of issuing or sending the policy if the trust is not  established What is the risk to the PI and AQ if we make a mistake?  >> 0 >> 1 >> 2 >> 3 >> 4 >>
  16. 16. BENEFICIARY
  17. 17. HOW IS THE BENEFICIARY DETERMINED? leave money to a person, trust, business or estate? •Why It is all about customer needs do you decide which of those possibilities you should •How choose? What is the financial loss…. PI name anyone they want as a beneficiary? •Can Give the customer options We can always change the beneficiary after the policy is in force. >> 0 >> 1 >> 2 >> 3 >> 4 >>
  18. 18. NAMING THE BENEFICIARY Features naming an Individual?  Features naming the estate of the  insured? Features naming a Trust?  >> 0 >> 1 >> 2 >> 3 >> 4 >>
  19. 19. CARRIER REQUIREMENTS ON BENEFICIARIES Naming an individual – What requirements do we need?  Why? Naming a Trust?  Is the % share important? Why?  Naming a Business?  >> 0 >> 1 >> 2 >> 3 >> 4 >>

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