A Primer on Irrevocable Life Insurance Trusts "I’m proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money." Entertainer Arthur Godfrey The irrevocable life insurance trust (ILIT) can be an important estate strategy tool that may accomplish a number of estate objectives; however, it may not be appropriate for every individual. What Is an ILIT? An ILIT is created by an individual (the grantor) during his or her lifetime. The ILIT owns a life insurance policy on the grantor’s life via the transfer of ownership of an existing policy, or through the grantor’s annual contribution of cash to pay the premiums on a policy purchased...
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The Baby Boomers get credit — and blame — for how they changed work, society, and pop culture over the years. Now, with 10,000 Boomers turning 65 every day through 2030, this powerful generation is well on its way to redefining how we plan for retirement, including the role life insurance can play. Three major forces are driving the changes. First, the obvious. People are living longer. According to the Social Security Administration, a 65-year-old can expect to live 19 to 22 more years, on average, and one in three will live into their 90s. Compare that to 1960, when a 65-year-old man would live an average of 13 more years. Second, not only are people living longer, they’re also more...
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BestTV, Chanyoung Lee, senior financial analyst, AM Best, said deteriorating loss ratios and escalating pressure on investments are challenging the South Korea non-life insurance market. Click on http://www.ambest.com/v.asp?v=ambsouthkoreaoutlook620 to view the entire program. Lee discussed the trends that have negatively impacted the South Korea non-life market. “In the overall industry, net income dropped by 40% last year mainly because of increasing claims in the long-term and automobile insurance lines, which are the two major business lines in South Korea's non-life sector,” said Lee. “For automobile insurance, which accounts for about 20% of total direct premiums, there were multiple...
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Private life insurer Aditya Birla Sun Life Insurance saw a 10 percent year-on-year (YoY) growth in individual premiums in May 2020 despite the coronavirus lockdown slowing down the industry. In an interaction with Moneycontrol, Kamlesh Rao, MD and CEO, Aditya Birla Sun Life Insurance, said the company wrote Rs 100 crore of individual business in May 2020 even as the industry de-grew by 30 percent. The coronavirus outbreak and the subsequent lockdown from March 25 led to a sharp slump in new policy sales for life insurers. This is because field agents were no longer able to visit customer homes to sell products while bank branches had a drop in visitor numbers. Banks and agents are the two...
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IF your mortgage loan has been cancelled, even if it was for the shortfall in payment of interest, you may be able to claim a part refund of any life insurance premium paid which was linked to your mortgage. In the past, many Spanish banks forced their client to enter into a life insurance agreement with the premium paid in advance, in order to cover payment of the mortgage loan, either as a condition of the mortgage loan or for clients to get obtain a ‘better’ deal. As previously reported, it is possible to nullify the imposition of paying life insurance in some cases, and our law firm can help you. In today’s article, we want to inform consumers and clients of banks in Spain, that...
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On May 1, 2020, the BC Financial Services Authority (the "BCFSA") issued Information Bulletin Number INS-20-003, which clarifies its interpretation regarding section 152 of the Insurance Act (the "Act"). The result is that the acceptance of life insurance policies by bona fide charities in BC is permitted, and will generally not be considered trafficking in life insurance policies contrary to section 152 of the Act. Section 152 of the Act provides: Prior to this clarification, the concern of the charitable giving community was that a charity which sought or accepted a life insurance policy from a donor, or received a benefit on the death of a donor, would have committed an offence of...
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State-owned Punjab National Bank (PNB) will retain stake in two life insurance ventures as the lender has got permission from Insurance Regulatory and Development Authority of India (IRDAI). Following the merger of Oriental Bank of Commerce on April 1 with PNB, 23 per cent of stake of the former in Canara HSBC OBC Life Insurance stands transferred to latter. Already, PNB is a promoter of PNB Metlife Insurance with the highest stake of 30 per cent since 2012. Founded in 2001, PNB Metlife's other shareholders include US-based Metlife with 26 per cent, Elpro (21 per cent) and M Pallonji...
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COVID-19: Govt to Give Life Insurance Cover Up to Rs 35 Lakh to FCI Official...
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Indemnity principle doesn’t apply to life insurance since loss is not quantifiable 2 min read . Updated: 12 Apr 2020, 11:22 PM IST Abhishek Bondia The indemnity principle means that the policy payout should restore the insured to the same financial position in which he was before the loss happened Yes, they will be enforceable. In the case of life insurance policies, the principle of indemnity does not apply. The indemnity principle means that the policy payout should restore the insured to the same financial position in which he was before the loss happened. Since the value of human life cannot be ascertained, the principle of indemnity does not apply as it is not possible to quantify...
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Sales of life insurance, due to the COVID-19 (Coronavirus) pandemic, are surging. According to Forbes, sales are up 20% since January. If you have life insurance, and you pass away from the virus, your beneficiaries will receive their compensation. If, however, you’re applying for life insurance right now, we’re here to answer your questions because it’s not so simple. Is there COVID-19 life insurance coverage? If you already have life insurance, you won’t need to add any exclusive coverage to your existing plan. Life insurance policies cover outbreaks such as COVID-19, so your beneficiaries are entitled to any death benefit. Life insurance plans cover death from...
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