Blog #138: The Quickest Way To Learn InsMark

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Bob Ritter's Blog #138: The Quickest Way To Learn InsMark

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Note from Bob:  The new concepts presented in this Blog are the brainchild of Don Prehn, a Board Member and Senior Advisor for InsMark.  Don serves as one of the editors of this Blog and provides guidance on the overall web-based client service and education and sales strategies for InsMark’s suite of software products.

DO WE HAVE A TREAT FOR YOU!

We frequently get one of the following questions from our InsMark software users or Blog readers:

  • “I haven’t used InsMark for a while . . . can you help me learn to do more things with the software?”
  • “Can you help me learn how to create a presentation that was shown in one of the Blogs?”
  • “I have producers in my agency and/or staff that need to learn how to use the InsMark software.  What’s the best way to proceed?”

For answers to these questions, just click on the image above (the “dog reading the book”).  This will take you to a web page entitled “The Quickest Way To Learn InsMark”.  Once there, as you scroll down a little, you will also see a video with the caption (“Easy As 1, 2, 3”).  Watch this video! It will explain the powerful new training resources we have that will give you the “keys to the safe” on how to use InsMark like a pro for virtually any situation.

As you watch the “Easy As 1, 2, 3” video noted above, it also explains the importance of using InsMark’s Digital Workbook files which are the source of all InsMark presentations (discussed in the instructional video below).  That said, we strongly encourage you to watch the “Easy As 1, 2, 3” video first before viewing the one below.

 

This Blog #138 has no InsMark presentations or accompanying Workbook files.

 

We’ve tested “The Quickest Way To Learn InsMark” with several of our individual and independent marketing organization licensees, and the feedback has been tremendous — and uniformly positive.  If you’ll spend a few minutes watching the videos (described above), you’ll see how this new process literally takes all of the guesswork out of creating customized InsMark presentations for your clients.

We’re thrilled to provide this new sales and training resource and hope you find it useful.

(Click here for Blog Archive)
(Click here for Blog Index)

Licensing InsMark Systems

To license any of the InsMark software products, visit our Product Center or contact Julie Nayeri at Julien@insmark.com or 888-InsMark (467-6275).  Institutional inquiries should be directed to David Grant, Senior Vice President – Sales, at dag@insmark.com or (925) 543-0513.

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources as they have promised to take special care of my readers.  My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration!

Testimonials

“InsMark has created without question the best suite of software for our industry that has ever existed. I personally have been using their software for almost 30 years, and it changed my career.  This unique and user friendly software will add many thousands to your income for as long as you’re in business. InsMark makes me look good, and it will you as well.”
Simon Singer, CFP®, CAP®, RFC®, Past President International Forum, InsMark Platinum Power Producer®, Encino, CA

“InsMark is the Picasso of the financial services world — their marketing savvy never fails to amaze me.”
Doug Peete, Past President, Top of the Table, InsMark Silver Power Producer®, Overland Park, KS

“I really thought I knew all the sales techniques that affect my business, but I do now, thanks to InsMark.”
Sam Keck, MBA, CLU, CFP, LUTCF, InsMark Platinum Power Producer®, Financial Planner, Denver, CO

“For three decades, InsMark software has been the leader in presentation software for life insurance.  Nothing holds a candle to it.  If you are in the retirement, estate or charitable planning arena, this is the easiest AND most powerful software on the planet.  I highly recommend it.”
Scott Keffer, Advisor Coach, Best Selling Author, Creator of Double Your Affluent Clients®, Pittsburgh, PA

 

Important Note:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

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More Recent Blogs:

Blog #137: More On “The Best Policy for My Client”

Blog #136: Taking Care of a Rainmaker

Blog #135: Merging College and Retirement Planning

Blog #134: Best Strategy for an IRA (Part 2 of 2)

Blog #133: Best Strategy for an IRA (Part 1 of 2)

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive

 

Blog #137: More On “The Best Policy for My Client”

(Click here for Blog Archive)
(Click here for Blog Index)

(Presentations in this blog were created using the InsMark Illustration System)

Getting Started with InsMark Training Video

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Note from Bob:  “Best policy for my client” cannot be established by a standard that applies to all clients.  Rather, it must be determined by an objective analysis that is unique to each client as to the type of policy as well as each client’s personal comfort with different levels of death benefit, cash value, cash flow, and interest or dividend assumptions.

This week we have a guest Blog presented by Brian Manderscheid, Vice President and Advanced Case Designer for LifePro Financial Services, Inc., San Diego, CA, that addresses these critical issues featuring InsMark Compare, our new spreadsheet module that compares various policy types and benefits.

 

Brian-Manderscheid-Vice-President-LifePro-Financial-Services imageBob - as we discussed last week, we have had a lot of success with the InsMark Compare report in the InsMark Illustration System.  Specifically, we are able to help our agents work with their clients in more of an advisory role and less as a salesman or ‘product pusher.’  The InsMark Compare report is very timely due to the new Department of Labor (DOL) ruling on fiduciary standards and best interest contracts pertaining to retirement advice.

While this new ruling will most likely affect advisors who work in the rollover market, it may also prompt a shift in how financial products in general are sold.

My idea for this Blog is to help show the power of the InsMark Compare report but also help advisors avoid the ‘product pusher salesman’ trap.  By offering non-biased advice based on what’s best for the client, our advisors are able to ‘sell’ more insurance than most other groups.  Additionally, this level of service produces more referred leads than the salesman type approach which is mostly transactional.

Below, I broke down three advisory-type sales methods using the InsMark Compare report.

Proposal #1 - Risk Spectrum

Rather than lumping every client who walks in the door as someone who should buy a specific product, we can match up our product offerings to each of our prospects individual level of risk.  The InsMark Compare report allows us to illustrate up to 4 different product types side by side in a customizable, comprehensive, yet easy to understand report.  This allows us to present products from the most conservative Whole Life to the most aggressive Variable Universal Life and, of course, products in-between.

Below is one of the InsMark Compare graphics from this analysis:

Image 1
Proposal #1 - Risk Spectrum
Summary Analysis of
Cumulative After Tax Loan Proceeds

blog-137-image-1-proposal-1-risk-spectrum-summary-analysis image

Click here to review the entire InsMark Compare report for Proposal #1 - Risk Spectrum.

In addition to the full report, InsMark provides a comprehensive risk questionnaire from Back Room Technician (Advisys) that can be used in a pre-appointment conversation in order to determine your prospect’s risk tolerance.  Once we have determined our prospect’s level of risk, we can then match up the product that best matches their risk tolerance.  For example, a prospect with a Moderate to Moderately Aggressive risk tolerance may be best suited for Indexed Universal Life rather than a more conservative Whole Life.

Note for advisors who aren’t securities-licensed: The Variable Universal Life illustration can be eliminated from any InsMark Compare evaluation.  Other products such as Guaranteed Universal Life, Guaranteed Indexed Universal Life or Non-Participating or Interest Sensitive Whole Life could be added and located on the left side of the illustration in a Conservative risk tolerance category.

Proposal #2 - Carrier Compare

After determining the appropriate product type for our prospect, we can then move to a carrier comparison.  Using the InsMark Compare report we can contrast up to 4 different carriers side by side rather than sifting through 4 carrier proposals (upwards of 40 pages each).  We can compare certain variables such as illustrated rates as well as performance measures such as cash value, income and death benefit.  In our example our prospect’s risk tolerance from Backroom Technician matches up best to Indexed Universal Life.  We then hand-selected 4 carriers that offer very competitive IULs to show the client we did our due diligence in carrier selection.  Again, this helps our agent act in an advisory role rather than pushing one specific carrier.

Below is one of the InsMark Compare graphics from this analysis:

Image 2
Proposal #2 - Carrier Compare
Summary Analysis of
Cumulative After Tax Loan Proceeds

blog-137-image-2-proposal-2-carrier-compare-summary-analysis image

Click here to review the entire InsMark Compare report for Proposal #2 - Carrier Compare.

As you can see in this InsMark Compare report, ‘Carrier A’ provides the highest illustrated income even though it has the 3rd lowest Actuarial Guide 49 (AG49) illustrated rate.  With discussion of additional important variables such as loan rates, indexed crediting strategies, interest rate bonuses, carrier financials and renewal rates, we were able to narrow down ‘Carrier A’ as the best product for our prospect.

Note:  This report was run at each carrier’s AG49 rate to take into consideration each carrier’s current cap rates.  It can be modified to show each carrier earning the same illustrated rate such as 6% or 7% (depending upon each carrier’s AG49 rate).

Proposal #3 - Illustrated Rates

Far too many times we’ve seen agents try to prove or justify high illustrated rates to their prospects and lose sales as a result.  While AG49 has helped minimize ‘too good to be true’ illustrations, some agents still illustrate at the maximum rates and argue there is no way the product will perform any less.  To avoid this salesman trap, we can again use InsMark Compare to provide the client with a range of illustrated performance.  Showing the client 4 separate carrier illustrations may not only be cumbersome, it can also prove to be a waste of paper.  In this example, we illustrated IUL ‘Carrier A’ at 4 different illustrated rates of 7%, 6%, 5%, and 4%.  At these rates the projected tax free retirement income ranges from a low of $36,379 to a high of $99,936.  While just shy of six figures of annual tax free income looks the most enticing, our clients need to understand past performance is no guarantee of future results.  Providing the client a range of performance demonstrates your credentials as a trusted adviser, it also helps reduce any potential future liability from claims such as “I didn’t know the cash flow from the policy could be less than illustrated”.

Below is one of the InsMark Compare graphics from this analysis:

Image 3
Proposal #3 - Illustrated Rates
Summary Analysis of
Cumulative After Tax Loan Proceeds

blog-137-image-3-proposal-3-illustrated-rates-summary-analysis image

Click here to review the entire InsMark Compare report for Proposal #3 - Illustrated Rates.

This InsMark Compare report can also be run with the same income for each illustrated rate but with shorter income durations for lower rates.  While the $99,936 illustrated income will last to age 100 with a 7% illustrated rate, it may only last to age 72 at a 4% illustrated rate.

In addition to providing valuable advisory process on how to sell more life insurance, there are several other great uses of the InsMark Compare report:

  • Comparing different face amounts or price points with the same product or multiple products;
  • Comparing different premium funding amounts, funding options or funding durations with the same product or multiple products;
  • Comparing taking income from an IUL at different ages such as 62, 66, 70 and 75;
  • Comparing single life products on each spouse vs. a survivorship life;
  • Comparing a premium financed program vs. a non-financed program.

Conclusion

With the power of the InsMark software system and the techniques outlined above, you can become your prospects trusted advisor, increase referrals, and just about eliminate any competition.  Likewise, with the fiduciary standards imposed by DOL on retirement advice, the InsMark Compare report ensures you are not only providing suitable advice but also offering the best products available.  While the reach of the DOL ruling may not be fully understood, it is important that as advisors we start to shift our focus from product selling to offering trusted advice.

Carrier A turned out to be pretty much the leader in all the comparisons.  To find out which company is Carrier A, please contact LifePro Financial Services at 888-543-3776 or IMCaseDesign@Lifepro.com.  We would be pleased to prepare a customized InsMark Compare for you.

LifePro is a premier marketing partner that assists InsMark producers on getting in front of qualified prospects so they can present reports much like the ones discussed above.  If you’re interested in learning how to sell more and larger IUL cases to the right audience, LifePro is holding an IUL Sales Academy on July 20th and 21st in San Diego, CA. Visit www.lifeprowealthbuilder.com for more information.

Licensing InsMark Systems

To license the InsMark Illustration System, visit InsMark online or contact Julie Nayeri at julien@insmark.com or 888-InsMark (467-6275).  Institutional inquiries should be directed to David Grant, Senior Vice President - Sales, at dag@insmark.com or (925) 543-0513.

 

InsMark’s Digital Workbook Files

If you would like some help creating customized versions of the presentations in this Blog for your clients, watch the video below on how to download and use InsMark’s Digital Workbook Files.

New Zip File Downloaders
Watch the video.

Digital Workbook Files For This Blog

Blog137.zip

Download all workbook files for all blogs

Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.

Note:  If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System.  Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed.

 

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources as they have promised to take special care of my readers.  My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration!

Testimonials

“I really thought I knew all the sales techniques that affect my business, but I do now, thanks to InsMark.”
Sam Keck, MBA, CLU, CFP, LUTCF, InsMark Platinum Power Producer®, Financial Planner, Denver, CO

“InsMark provides incredible tools to give clients a visual of how they can optimize their wealth.  It’s great for deciding which road to go down.”
Jim Heafner, MBA, CFP, Heafner Financial Solutions, Inc., Charlotte, NC

“InsMark’s Checkmate® Selling strategy is still one of the most compelling tools to bring a client to a definitive decision, based on their best case alternatives!!!  Solid mathematical comparisons that prove the validity of our insurance solution!!!”
Frank Dunaway, III, CLU, Legacy Advisory Services, Carthage, MO

 

Important Note #1:  The hypothetical values associated with this Blog assume the nonguaranteed values shown continue in all years.  This is not likely, and actual results may be more or less favorable.

Important Note #2:  Many of you are rightly concerned about the potential tax bomb in life insurance that can accidentally be triggered by a careless policyowner.  Click here to read Blog #51: Avoiding the Tax Bomb in Life Insurance.

Important Note #3:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

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More Recent Blogs:

Blog #136: Taking Care of a Rainmaker

Blog #135: Merging College and Retirement Planning

Blog #134: Best Strategy for an IRA (Part 2 of 2)

Blog #133: Best Strategy for an IRA (Part 1 of 2)

Blog #132: The Calculation Magic of Wealthy and Wise®

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive

 

Blog #136: Taking Care of a Rainmaker

IUL – An Alternative to Stock Options

(Click here for Blog Archive)
(Click here for Blog Index)

(Presentations in this blog were created using the InsMark Illustration System)

Getting Started with InsMark Training Video

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Assuming there are sufficient profits, almost all forward-thinking companies reward important key executives with special benefits, e.g., bonus plans, split dollar, salary continuation, stock options, etc.

If executives are valuable enough to be provided with a significant fringe benefit, they should also be covered with a business-owned key executive policy to indemnify the business against losses created by their death.  There is a very efficient way to accomplish both issues.

Executive Trifecta®

“Trifecta” refers to a winning sequence of three and is typically associated with a pari-mutuel bet in horse racing that involves picking the exact order of which horses will finish first, second, and third in a given race.

We have given the name Executive Trifecta to the trifecta of benefits described in this Blog, and this plan can be illustrated in the InsMark Illustration System (located on the Executive Benefits tab).

Executive Trifecta is highly suitable for non-owner key executives of any business (profit-making or tax exempt), but it is also effective for principals of C Corporations, S Corporations, LLCs, LLPs, and Partnerships.  It may surprise you that it works better for principals of an S Corporation and even better for principals of an LLC, LLP or Partnership.  (More on this appears below.)

The Case Study that follows examines how Executive Trifecta can work for an important executive of an S Corporation who has no ownership interests in the company.

Case Study

Tony Jamison is Executive Vice President and General Manager of Town and Country Auto Group, Inc., a multi-brand, multi-city, new car dealership operating as an S Corporation.  Tony is a classic rainmaker of corporate revenue for Town and Country Auto, and the company is vitally interested in providing him with an irresistible executive benefit that will ensure his employment for at least the next 10 years.

“Trifecta” refers to a winning sequence of three -- and Executive Trifecta delivers three, very powerful, sequential benefits.  Here is how it works:

  • Selected key executives are insured in favor of the employer;
  • In pre-retirement years, a portion of each policy’s death benefit is allocated to provide survivor income benefits to the insured executive’s family;
  • At a designated age, ownership of the life insurance policy is contractually transferred to the executive (as a deferred bonus) thereby creating a supplemental retirement asset.

Key Executive Coverage

With Executive Trifecta, the face amount of the life insurance policy is established using either of the following two options:

Option 1: The employer makes an arbitrary decision as to the amount, or;

Option 2: The software calculates the appropriate amount using employer estimates as to:

  • The loss of revenue for the time it takes a replacement executive to match the performance of the current executive;
  • The expected compensation differences between the current and replacement executive;
  • Other replacement costs such as signing bonus, relocation package.

I used Option 1 in the following analysis in this Blog to establish coverage of $2,500,000 to be retained by Town and Country Auto Group (the Plan Sponsor) to indemnify it against the loss of Tony due to his death.  (See Blog #44 for an example of Option 2 where the executive is a non-owner of a Limited Liability Company.)

Survivor Income Benefit

The software has a “smart solve” Survivor Income Benefit Calculator which establishes the amount of coverage needed to fund the Plan Sponsor’s payments to Tony’s family.  In this Case Study, we illustrated a benefit of $300,000 a year for 10 years which included a 3.00% cost of living adjustment as hedge against inflation.  The Survivor Income Benefit Calculator indicated that $1,753,806 of coverage is needed to fund the present value of the employer’s after tax cost of this survivor benefit.  Tony’s family will receive income paid over 10 years totaling $3,439,164 should his death occur any time in the next 10 years.

This produces a policy death benefit of $4,253,806 -- the combination of the death benefit to be retained by the Plan Sponsor ($2,500,000) and the amount needed to fund the present value of the survivor income benefit ($1,753,806).

Policy Transfer - beginning of year 11
(Policy values are effectively the same as the end of year 10)

In our example, we scheduled the transfer of the policy to the executive at the beginning of year 11 at which time all policy values (accumulation values of $877,189 and death benefits of $4,253,806) become personally owned by Tony.  He owes income tax on the $877,189 which, in his 40% income tax bracket, costs him $350,875.  This is offset by a bonus from the Plan Sponsor of $350,875 requiring an out-of-pocket cost to Tony of $140,350 (40% of $350,875).

Note:  This is just one of many bonus options.  For example, a gross-up bonus (also known as a “double bonus”) could be used to offset all Tony’s costs for the transfer.

Below is the financial summary of what Town and Country Auto Group is providing Tony in exchange for his loyal employment over the next 10 years:

  • Almost $3,500,000 of survivor income benefits for his family if he dies anytime during the next 10 years;
  • Beginning in year 11, a personal life insurance policy with no further premiums due with a face amount of $4,253,806 and current cash values approaching $1,000,000;
  • After tax retirement cash flow of $260,000 a year that totals more than $9,000,000;
  • Long-range residual cash value of almost $2,500,000.

Tony’s cost for all this is $140,350 of income tax in year 11, and that tax could easily be funded by Tony using a participating loan on the policy after the transfer.

This transaction is a contractually guaranteed option to acquire a seasoned IUL policy, and I suspect you now understand why I sub-titled this Blog:

IUL – An Alternative to Stock Options

For a variety of reasons, many family-owned companies are unwilling to use classic stock options - not the least of which is a reluctance to deal with non-family, minority stockholders once the options are exercised.

Below is a graphic of the plan’s costs and benefits from Tony’s age 40 to 100:

Image 1
Summary of Costs and Benefits

blog-136-img-1-summary-of-costs-and-benefits

Details of the Plan

Click here to review Tony’s numbers on Page 1.  Note on Page 3 that he would need to earn a pre-tax rate of return in excess of 30.00% on his $140,350 cost in year 11 in order to match his results of the plan (and this ignores the value of the survivor income benefits in years 1-10 as well as the policy death benefit for his survivors thereafter).

Below is a graphic of Tony’s results:

Image 2
Trend Lines of Tony’s Costs and Benefits

blog-136-img-2-trend-lines-of-tonys-costs-and-benefits

Click here to review the costs and values for Town and Country Auto Group. Over 10 years, it costs this Plan Sponsor $700,000 in policy premiums offset by substantial cash values.  (At the end of 10 years cash values total $857,031, a gain of $157,031 over premiums paid.)  At the beginning of year 11, these values are transferred to Tony resulting in a small after tax gain to the Auto Group.  (See the Details of the Tax Consequences report down a few lines.)

Click here to review the funding for the survivor income benefits.  There is no additional cost to Town and Country Auto Group to provide this benefit as $1,753,806 of the policy death benefit is reserved for this purpose (see year 1, Column 3).  $1,753,806 is the present value at 6.00% of the after tax cost of providing the stream of survivor benefits shown in Column 1.

Click here to confirm “Details of the Tax Consequences” to both the Plan Sponsor and Tony that are associated with the transfer of the policy at the beginning of year 11 (reflecting end of year 10 values).  The income tax savings of $280,000 to the Plan Sponsor caused by the transfer of the policy to Tony are reduced by the $210,526 after tax cost of the bonus paid to Tony to assist with his tax cost of the transfer resulting in a gain of $69,474 which reduces the Plan Sponsor’s funding to $630,526 ($700,000 minus $69,474).  Click here to review those calculations.

It is unusual for me to show you pieces of the overall illustration one at a time.  I have done so because Executive Trifecta can appear very complex the first time you look at it, and I wanted to give you a preliminary heads-up before you review it in its entirety.

Click here to review all the reports associated with this benefit plan.  Executive Trifecta has a composite feature where costs and benefits for several executives can be illustrated.  While you generally would not produce a composite for just one executive, I included the composite with this case because the summary numbers on illustration Pages 2, 3, 4, and 5 are so powerful - and probably welcome as this simplifies the moving parts of this benefit plan.

The detailed illustrations for Tony’s plan begin on illustration Page 10.  A Flow chart of the Executive Trifecta process is on illustration Page 11.  It may look complicated, but study it carefully as it will help guide you through the reports that follow.

A Benefit Summary -- sort of a road map -- appears on illustration Page 12 where highlights of each feature are listed along with the name of the specific report that illustrates each one.  Special thanks to Kerry Walker, InsMark Platinum Power Producer, for not only suggesting the Benefit Summary but also helping us design it.

Conclusion

Is the plan worthwhile for Tony?  This is easy -- absolutely yes!

Is the plan worthwhile for Town and Country Auto Group?  Assuming Tony’s high value to the company over the next ten years -- absolutely yes!

What if Tony is not interested in participating in the plan?  Some serious management information will have been discovered as Tony may be considering alternate employment.  Any advance notice of it - or even a suspicion of it - is a valuable management tool.

Repeat the Benefit Plan in Year 11?

What happens after ten years?  All Tony’s benefits are vested after ten years, so after that he can depart without penalty.  Can the Auto Group convince him to stay longer?  They likely can by duplicating the benefit plan over the following ten years!

Advantages of Executive Trifecta over Loan-Based Split Dollar:

  • No Applicable Federal Rates apply;
  • No compliance with split dollar regulations required;
  • No liability for the executive in the early years of the policy due to surrender charges;
  • No IRS issues with bonuses;
  • The plan is suitable for executives of a public business (i.e., no conflict with Sarbanes-Oxley as is the case with Loan-Based Split Dollar).

Business Types

The tax details are different depending on whether the executive is an owner or non-owner -- as well as whether the firm is a C Corporation, S Corporation, LLC, or Partnership.  The Sample Illustrations section for Executive Trifecta in the InsMark Illustration System contains illustrations for all these business entities.  You will be amazed at the efficiency of plans for owner-executives of S Corporation, LLCs, and Partnerships.  The transfer tax costs are significantly reduced for owners of S Corporations and are totally eliminated for owners of LLCs and Partnerships.  Executive Trifecta is one of the few benefit plans for pass-through entities with more leverage for owners than non-owners.  (We can also illustrate plans for executives of tax exempt organizations.)

Click here for remarks about Executive Trifecta and Section 409A.

Click here for Tax Notes detailing the income tax consequences of any of the referenced business types.

Click here for a comprehensive PowerPoint presentation with examples of all variations of Executive Trifecta for different business types and their executives.

Documentation

dod InsMark’s Cloud-Based Documents On A Disk™ has specimen documents for implementing Executive Trifecta located in both the Business Owner Benefit Plans and Key Employee Benefit Plans section of documents.  (Note: This link will take you to the DOD promo site.  If you are licensed for DOD, go to www.insmark.com and select My InsMark from the home page for access to the full version of DOD.)

Licensing InsMark Systems

To license the InsMark Illustration System, visit us online or contact Julie Nayeri at julien@insmark.com or 888-InsMark (467-6275).  Institutional inquiries should be directed to David Grant, Senior Vice President - Sales, at dag@insmark.com or (925) 543-0513.

 

InsMark’s Digital Workbook Files

If you would like some help creating customized versions of the presentations in this Blog for your clients, watch the video below on how to download and use InsMark’s Digital Workbook Files.

New Zip File Downloaders
Watch the video.

Digital Workbook Files For This Blog

Blog136.zip

Download all workbook files for all blogs

Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.

Note:  If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System.  Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed.

 

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources as they have promised to take special care of my readers.  My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration!

Testimonials

“My experience with InsMark’s Executive Trifecta is career changing.  Showing this idea to a business owner is a win-win-win!  The business owner wins by protecting and retaining one of his most valuable assets (a key executive).  The executive wins by being recognized and rewarded for efforts, results, and loyalty.  The financial professional wins by gaining the confidence and business of a new client.  This concept can revolutionize a financial services career.”
Kerry L. Walker CLU, ChFC, InsMark Platinum Power Producer®, The Walker Firm, Inc., Aurora, CO

“InsMark is the Picasso of the financial services world — their marketing savvy never fails to amaze me.”
Doug Peete, Past President, Top of the Table, InsMark Silver Power Producer®, Overland Park, KS

 

Important Note #1:  The hypothetical values associated with this Blog assume the nonguaranteed values shown continue in all years.  This is not likely, and actual results may be more or less favorable.

Important Note #2:  Many of you are rightly concerned about the potential tax bomb in life insurance that can accidentally be triggered by a careless policyowner.  Click here to read Blog #51: Avoiding the Tax Bomb in Life Insurance.

Important Note #3:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

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