- Tax-Free Payment of Long-Term Care Benefits: The cost of any long-term care benefits charged against the cash value of an annuity contract will not be includible in gross income, but will reduce your investment in the contract.
- Tax-Free Exchanges of Existing Annuity Contracts: If you have an existing annuity contract that you do not need for other purposes, you can exchange it on a tax-free basis for an LTC hybrid plan. Tax-free Section 1035 exchange requirements can be complex. In order to avoid unforeseen and/or negative tax consequences, you should seek professional tax advice before implementing a Section 1035 exchange.
- You hear “No” a lot more.
- Cases that seemed a sure bet don’t happen.
- A nice app is withdrawn or declined.
- Your most recent referral stands you up.
- Nothing seems to go right.
I had a recent conversation with an agent that had submitted a life case and was getting frustrated that the carrier kept ordering APS’s from multiple doctors. Before he wrote the case he did the basic field underwriting questions, but did find out she was declined for coverage a few years back. The client could not remember why she was declined for coverage. I suggested the agent work with the client to request her MIB record to understand better why she was possibly declined. The agent was taken back by my statement, “people can get a copy of the MIB record”. Yes, they can request it online or by phone for FREE and it is mailed to them. It falls under the Fair Credit Reporting Act. So I ask you, what do you know about the MIB system? It is a major part of the underwriting decision on the business you write every day; so don’t you think you should know more about it? Here is the link to explore how the MIB system works. Click Here!