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Ed Slott’s Words of Wisdom | Life Insurance is the New Stretch IRA

C.A.L.L.

I love acronyms and I have a slew of them in my head to help my thinking process at certain times.  I recently sat in on a webinar with guest speaker Ed Slott.  Ed discussed a few items and shared his C.A.L.L. acronym.  I thought I would share it with you as you continue to call your clients during today’s rapidly changing world.

C = Communicate with them (Don’t squander this critical time; capitalize on it by strengthening your relationships)

A = Assess their current situation

L = Learn (What planning should change going forward?)

L = Lay out a new plan 


The Importance of an Insurance Review

Understandably, most clients are concerned about their assets and income moving forward.  When you call them perhaps you can take the time to learn about the shape of their insurance assets.  Many clients own universal life policies and there continues to be pricing pressure on these plans.

The NY Times article below provides great insight to the situation.  The concerning part of the article is that it was written in April of 2016.  Today interest rates are lower, and we have an actual risk of higher mortality costs with the pandemic, giving us even more reason to review our client’s policies.

Why some life insurance premiums are skyrocketing (The New York Times)

We can help you review, analyze, and evaluate existing or proposed insurance coverage.  Launch our Life Insurance Review Kit to learn more.

Of course, any review would confirm ownership and beneficiary arrangements.  John Hancock’s BYA piece is a great beneficiary resource to help make sure things are set up correctly.


Life Insurance IS the new stretch IRA.

We were just digesting the SECURE act when suddenly the CARE act and stock market took our focus away. Ed Slott is a known retirement plan expert and when the stretch IRA was eliminated, he was quick to recognize and state that Life Insurance IS the new stretch IRA. Learn more in Ed’s article below.

Why life insurance is the new Stretch IRA

Some of your HNW clients with unneeded IRA’s may want to consider the life insurance sooner rather than later due to recent events.  Lower interest rates add pricing pressure on life insurance and many insurance companies are increasing prices, especially on guaranteed policies.  The bailout/stimulus is likely to cause a spike in taxes at some point and their health is not likely to improve with age.  We have software which can help you analyze if this idea makes sense for your client.

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