7702 – Product changes and transition rules

7702 changes Background With the passage of the Consolidated Appropriations Act of 2021 on December 27, 2020, a change was made to Section 7702 of the Internal Revenue Code. This change outlined several requirements permanent life insurance policies must meet in order to qualify as a life insurance contract for tax purposes The change affects the life insurance industry by replacing the statutory interest rate assumptions (from 1984) from a previously hard-coded 4% rate to a floating rate. These changes will impact the limits associated with definitions of life insurance in the Guideline Premium Test, Cash Value Accumulation Test and
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Categories: Industry News, Life Insurance, and Securian.

Securian: maximize your client’s LTC benefit pool

Pro tip: maximize your client’s LTC benefit pool When you’re trying to find the best LTC product for a client, there’s often a temptation to do an apples-to-apples comparison between different carriers. But when you design a SecureCare Universal Life policy to match a competitor’s, you may miss out on the sweet spots. SecureCare tends to offer clients the most value when it uses an even-year benefit duration – and our 6-year benefit duration does the best from there. Just to give you an idea, here’s a hypothetical example for a 62 y/o male (NT, single) showing a $100K single-pay
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Categories: Industry News, Life Insurance, and Securian.

View our Webinars Anytime!

We want to take a moment to thank all of those who are able to attend one or all of our first quarter webinars. We’re committed to helping you grow your disability income insurance sales with Mutual Income Solutions. This product will help your clients understand that disability income insurance is affordable coverage that helps replace the loss of an income. Did you miss one or all of our webinars? No worries, we have all of our webinars available for playback. In January, we talked about the need for income protection. When your clients may not realize that their income
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Categories: Disability Income Insurance, Industry News, and Mutual of Omaha (& Affiliates).

Priority Income Protection Discontinuation

Mutual of Omaha is committed to providing insurance solutions to help your clients protect their income and future. On October 15, 2020 we launched our new Disability Income product – Mutual Income Solutions. This product features expanded occupation classes, competitive product features and benefits and an all-electronic process allowing you to provide a valuable Disability Income solution to your clients. At this time, we will be discontinuing the Priority Income Protection (PIP) product. See below for more information. Effective Date March 1, 2021 Impacted States All States Transition Rules Priority Income Protection applications must be signed on or before February
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Categories: Disability Income Insurance, Industry News, and Mutual of Omaha (& Affiliates).

Changes to Section 7702

Changes to Section 7702 in COVID relief legislation Changes drive by low interest rate environment As part of The Consolidated Appropriations Act of 2021, signed into law on December 27, 2020, a change was made to Section 7702 of the Internal Revenue Code. This change outlined several requirements permanent life insurance policies must meet in order to qualify as a life insurance contract for tax purposes. Given the ultra-low interest rate environment, the change assists the life insurance industry by replacing the statutory interest rate assumptions (from 1984) from a previously hard coded 4% rate to a floating rate. These
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Categories: Industry News, Life Insurance, and Securian.

Action needed: Get email notifications for online documents

Action needed: Get email notifications for online documents Coming soon, Securian Financial will stop sending life in-force client service documents by mail and instead send email notifications, when documents are available online. Clients, however, will continue to receive their documents by mail as they do today. To make sure you receive these email notifications, here’s what we need from you: Please email idgwebaccess@securian.com with a preferred email address for life in-force communications for your firm. Contact Securian With Questions For any related questions, please call (833) 365-0322 or email idgwebaccess@securian.com.   #goldencareagent #minnesotalife #securian
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Categories: Industry News, Life Insurance, and Securian.

Administrative Alert! Changes to Indexed Life Portfolio

Administrative Alert! Changes to Indexed Life Portfolio Due to the continuing economic impact of the COVID-19 pandemic, it is necessary to reduce cap rates and participation rates on some of the accounts within our Indexed Universal Life product portfolio. These changes will take effect for all premium received and new indexed segments created after Friday, January 15, 2021. All premium received on or before January 15 for approved and existing policies will have current rates applied. Illustrations will be updated January 15, 2021. Many considerations go into determining the cap and participation rates – and we want to make sure
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Categories: Industry News, Life Insurance, and Securian.

Reminder: Holiday Hours for Securian’s SecureCare Team

SecureCare tele-interview and underwriting holiday hours Please take note of the following holiday office closures: Christmas Eve (Dec. 24): Closed at 3 p.m. CST Christmas Day (Dec. 25): Closed Boxing Day (Dec. 26): Closed New Year’s Eve (Dec. 31): Closed at 5 p.m. CST New Year’s Day (Jan. 1): Closed We hope that you and your loved ones stay safe and healthy.   #goldencareagent #minnesotalife #securian
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Categories: Industry News, Life Insurance, and Securian.

New SecureCare sales idea

SecureCare Funding Source: RMDs Since SecureCare Universal Life’s maximum payment age is now age 80 in most states, this allows older clients to take advantage of longer payment duration options and — potentially — a new premium funding strategy. If a client doesn’t need to rely on required minimum distributions (RMDs) from their qualified accounts for retirement income, they could use their RMDs to fund SecureCare. If you have older clients who are late to the long-term care (LTC) planning game, then this is a sales idea you’ll want in your repertoire! Get the flyer   Contact Us Questions? Please
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Categories: Industry News, Life Insurance, and Securian.

Mutual Income Solutions 2021 Training Webinars

Join us in 2021 for our training webinars to learn more about our Mutual Income Solutions product. Mark your calendars for the third Thursday of each month at 11:00am Central Time. We will be teaching about the need, product specific details and how to use the quote and e-application. View the Training Schedule Flyer   Mutual Income Solutions 2021 Training Webinars   #goldencareagent #mutualofomaha #disability
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Categories: Disability Income Insurance, Industry News, and Mutual of Omaha (& Affiliates).