Premium Financing Quarterly spot a gaping estate tax liability problem that they believe can be solved with life insurance. Savvy attorneys can even explain that if liquidity is a concern, premium financing can be used to acquire the appropriate amount of life insurance. They can connect those clients with an agent to get the life insurance in place. By the same token, there are times when agents are the first point of contact with clients. In the course of helping them get the right policy to address their estate planning, agents want to know that clients have structured their estate plan in a way that optimizes their life insurance and doesn’t create further tax liabilities, so clients may need to connect with an attorney. Then there are times when clients already have their team in place, but they need open communication between estate planning attorneys, accountants and agents to get the job done. “What often happens is that if clients like the idea of premium financing, they’ll have me speak to their attorney,” said Todd Hammer, a high-net-worth agent with Prudential. “Seven times out of 10, the estate
attorney is not familiar with the strategy.” Those are opportunities to educate attorneys as well, Hammer said.
A Team Close
Educating attorneys and accountants is part of the process for Tim Whitmore, chief marketing officer at Life & Annuity Masters. “At the end of the day, if a CPA or an attorney doesn’t understand something, what’s their answer?” Whitmore asked. “‘No,’ right?” One way to educate them is by doing a pre-meeting with the advisory team — but not with the client, so that the the advisors don’t feel put on the spot. Even if the attorney or the CPA does not sign on to the deal, Whitmore said it is still a win because at least he has educated the professionals about the strategy. Before the pre-meeting, Whitmore has already gathered information from the
“If I come in with a plan and then the attorney has a different idea of what they want to do, it’s never going to happen.”
8 February 2020
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