Producer Use Only. Not for Use With the Public. Sales and DI Risk Management… Partners in success! C: 66742.

Slides:

Advertisements

Similar presentations

X100©2008 KEAW L3 Business Forms Professor Kenneth EA Wendeln Sole Proprietorships and Partnerships Sole Proprietorships and Partnerships X100 Introduction.

Advertisements

For rep/agent use only. Not for further distribution.

Tax and Business Entities Decisions, decisions, decisions!

Chapter 6 B ASICS OF B USINESS T AXATION EBD 301 Accounting and Finance for Entrepreneurs.

Risk and Return, Business Structures By R. S. Miolla.

Chapter 1: What is a Partnership A partnership is an association between two or more persons who carry on a trade or business for profit as co-owners.

For Producer Use Only. Not For Use With The Public. CRN Disability Income Insurance Radius® Executive Select.

For Producer use only. Not for use with clients..

Forming The Start Up Venture Which Structure is Right for You? Gregory W. Gribben, Esq. Woods Oviatt Gilman LLP October 9, 2012.

The ABC’s of DI. Provides Accurate and Authoritative Information Content Accuracy is not Guaranteed Does not Render Legal, Accounting, Tax or other Professional.

Chapter 4 Business Income & Expenses Part II

FORMS OF BUSINESS ORGANIZATION. Introduction and Understanding of  Three Principal Forms of Business Organization  Essential Attributes and Characteristics.

Stock Market Game.

Farm Business Arrangement Alternatives AAE 320 Based on work of Philip E. Harris Center for Dairy Profitability Dept. of Agricultural and Applied Economics.

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

©2005 Prentice Hall, Inc. Sole Proprietorships and Flow-Through Entities Chapter 10.

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 15 Entities Overview.

THE HOME OF THE PROFESSIONAL ADVISER Relevant Life Plans – Put Life Cover On Expenses Legal & General.

15-1 Individual Tax Consequences of Investment Activity  Timing issues in income recognition  Expenses related to investment activity  Tax basis of.

LifeMarketers Presents The ABC ’ s of Disability.

Chapter 4 Entities Overview Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

COPYRIGHT © 2011 BY JEFFREY PITTMAN Chapter 18 – Corporations.

How do you maintain a strong bottom line? Keep your profits. C:

Entity Types and Why it is Such an Important Decision Entity Types and Why it is Such an Important Decision Brian Miller Miller Grossbard Advisors, LLP.

Key financial underwriting concepts For Producer use only. Not for use with clients. DI

Business Entities Chapter 22 Tools & Techniques of Financial Planning Copyright 2007, The National Underwriter Company1 What is a Business Entity? A “business.

Business Entities Dr. John Abraham Professor University of Texas Pan American.

©The McGraw-Hill Companies, Inc. 2008McGraw-Hill/Irwin Chapter 15 Corporate Taxation “Corporations don’t pay taxes, they collect them.” -- Paul H. O’Neill.

4/2/08Version Adapted for use by ASFMRA 1 of 28 Ag Land Management Business Ownership Structure.

Supplement Chapter 11 © Jeffrey Pittman.  We begin our discussion of business organizations by examining issues of business and owner responsibility.

HFT 2401 Chapter 1 Introduction to Accounting. Accounting A Means to an End  Provides answers to questions  How much cash do we have  What was our.

Selecting the Right Structure for Your Business. Getting Started How should you operate and structure your business? It can be difficult, so ask for help.

Business Practice Models Minnesota Psychological Association September 18, 2015 Denise Kautzer, MA, LPCC, CPA

15084PPT DI 301 (3/10) ©2010 Standard Insurance Company DI 301 Effective corporate disability insurance solutions for benefits managers and employees For.

9-1 ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

C HAPTER 1: T AX D EFINITION OF A P ARTNERSHIP. P ARTNERSHIP A partnership is an association between two or more persons who join to carry on a trade.

Split-Dollar Life Insurance Chapter 42 Employee Benefit & Retirement Planning Copyright 2011, The National Underwriter Company1 An arrangement to share.

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. DI /12 Understanding Financial Documentation.

1 Chapter 9: Partnership Formation and Operation.

1 Chapter 9: Partnership Formation and Operation.

Forms of Business Ownership. “C” Corporation Unlimited owners (shareholders) No personal liability for shareholders Taxed on earnings at corporate level.

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Key Employee Life Insurance Chapter 31 Tools & Techniques of Life Insurance Planning  What is it?  Life insurance policy owned by and payable.

Chapter 16 Corporations. Learning Objectives Determine the types of entities that can be classified as a corporation for federal income tax purposes Calculate.

Understanding financial documentation for individual DI and business overhead expense (BOE) insurance For Producer use only. Not for use with clients.

Chapter 15 Entities Overview © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale.

Chapter 14 Choice of Business Entity: Operations and Distributions © 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated,

HFT 2401 Chapter 1 Introduction to Accounting. Accounting – A Means to an End  Provides answers to questions  How much cash do we have  What was our.

Sole Proprietorship-a business that is owned and operated by one person *

© 2015 National Life Group ® National Life Insurance Company ® | Life Insurance Company of the Southwest ® National Life Group is a trade name of National.

National Life Insurance Company ® | Life Insurance Company of the Southwest ® National Life Group is a trade name of National Life Insurance Company, Montpelier,

Business Ownership Structures

McGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin Copyright (c) 2002 by the McGraw-Hill Companies Inc Principles of Taxation: Advanced Strategies Chapter 11 Chapter 11 Dispositions of.

Types of Business Ownership Back to Table of Contents.

McGraw-Hill Education Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of.

2015 Tax Benefits for Long-Term Care Insurance

The One For Three Solution Making Retained Earnings Work For You Trying on the Solution [Trying on the solution is a tool for use with a client during.

Chapter 7 Investments.

Chapter 15 Entities Overview.

Principles of Taxation: Advanced Strategies

Chapter 7 Basics of Business Taxation

©2009 Pearson Education, Inc. Publishing as Prentice Hall

THE RETAINED EARNINGS TRIFECTA The One For Three Solution

Chapter 4 Entities Overview.

The One For Three Solution Making Retained Earnings Work For You Trying on the Solution [Trying on the solution is a tool for use with a client during.

CIRCULAR 230 DISCLOSURE To ensure compliance with requirements imposed by the IRS, we inform you that – unless specifically indicated otherwise – any.

Self-Generated Income Part 1: Understanding Tax Forms

From Class Econ Notes Mr. Park.

Presentation transcript:

Producer Use Only. Not for Use With the Public. Sales and DI Risk Management… Partners in success! C: 66742

Producer Use Only. Not for Use With the Public. Financial Underwriting Why do we need to do this? What information do we need? Is it “gross” or net? What about unearned income? Types of Entities: Employee Sole Proprietor Partnerships S Corp/ C Corp/ PC

Producer Use Only. Not for Use With the Public. Why have a greater understanding of Financial Underwriting? So that you can target appropriate candidates for D.I. and adequately insure them. Understanding insurable income and earned income is essential when writing a disability income contract. We only insure earned income. We must consider corporate income/losses when issuing coverage. Business income or loss will be included at both underwriting and claim time (in the event of a claim under the Extended Partial Disability Benefits Rider).

Producer Use Only. Not for Use With the Public. Business Entities Entity determines necessary financials:  Employee/Non-Owner -- W-2  Sole Proprietor -- Schedule C  Corp. Shareholder -- Form 1120, pages 1&2 and W2  S-Corp Shareholder -- Form 1120S, pg 1; K-1;W-2 OR 1040 pg 1&2; Schedule E; W-2  Partner -- K-1 OR Form 1040, pgs 1&2; Schedule E

Producer Use Only. Not for Use With the Public. Tax Disclosure The information on the next two slides is being provided with the understanding that it is not intended to be interpreted as specific legal or tax advice. Neither MassMutual nor any of its employees or representatives are authorized to give legal or tax advice. Individuals are advised to seek the guidance of their own personal legal or tax counsel.

Producer Use Only. Not for Use With the Public. Taxable vs. Non-Taxable When an employee is a non-owner OR an employee/shareholder of a regular corporation (1120), we need to determine who will be paying the premiums: Insured pays the premium Non-taxable/employee paid Business pays the premium Taxable/employer paid Insured pays the premium Taxable/employer paid under a sec 125 plan w/ pre-tax dollars Business pays the premium AND Non-Taxable/employee paid includes it on employee’s W-2

Producer Use Only. Not for Use With the Public. Taxable vs. Non-Taxable When insured is operating as a Sole Prop. (Sch.C), S-Corp Shareholder (1120S) or Partner in a Partnership (1065), premiums are ALWAYS considered employee-paid. Accordingly, benefits are ALWAYS non-taxable (both group LTD and individual) Limited liability companies (LLC’s) can be organized as a corporation or partnership (sometimes referred to as a LLP) - and are most often organized as a partnership. Accordingly, if the producer advises that the business is a LLC we must take it one step further and inquire whether they are filing as a corporation (Form 1120) or partnership (Form 1065). If the LLC is filing as a partnership, all partners will have non-taxable group and individual coverage

Producer Use Only. Not for Use With the Public. Unearned Income Unearned income includes; interest, dividends, rental income, passive partnership & S-Corp interests, capital gains/losses. Unearned income exceeding 15% of Total Earned Income, will offset the monthly benefit amount. Unearned income will be disregarded unless it exceeds 15% of the Total Earned Income, except- Military and other pension distributions are dollar for dollar offset (Taxable benefits may be discounted)

Producer Use Only. Not for Use With the Public. Net Worth Will be disregarded unless exceeds $3,000,000 Will require breakdown of assets-liquid vs. non- liquid. Depending on amount of net worth, may need to reduce coverage and indemnity applied.

Producer Use Only. Not for Use With the Public. The Art of Averaging Guide is 2 years, but u/w may request 3rd. Decreasing earned income is not averaged. Income that should be averaged includes: Business Owner income increasing by 15% Commissioned employee earnings Bonuses Unearned income

Producer Use Only. Not for Use With the Public. The END!! MassMutual Financial Group is a marketing designation (or fleet name) for Massachusetts Mutual Life Insurance Company and its affiliates, Springfield, MA

Producer Use Only. Not for Use With the Public. Questions??

Producer Use Only. Not for Use With the Public. Massachusetts Mutual Life Insurance Company and affiliates, Springfield, MA