Properly Structuring The Policy

As an agent, you are responsible for properly structuring your clients’ policies. Key factors to consider are insurable interest, ownership, death benefit options and longevity. Clients can suffer negative tax consequences if the ownership of the policy is not properly structured. If payments are not affordable, the policy may lapse before maturity. Further, choosing the wrong death benefit option may cause the policy to become a Modified Endowment Contract (MEC) with negative tax consequences. We’ll discuss all of these factors to ensure your clients’ satisfaction with a well-structured policy.