Finishing strong in 2024!
As we look to finish strong in 2024, now is the perfect time to focus on strategies that can significantly boost your insurance sales and set you up for success in the year ahead. There are three key topics gaining momentum in the financial world that can provide immediate opportunities for you and your clients. Take a look below:
1. The Connelly Decision & Buy-Sell Policies
The recent Supreme Court Ruling on the Connelly decision has opened up new opportunities for structuring buy-sell agreements using life insurance policies. With the ruling's implications on the tax treatment of these policies, now is the time to advise business owners on how to leverage life insurance to fund buy-sell agreements and having the proper ownership of these policies. By utilizing properly structured policies, clients can avoid capital gains taxes and ensure smooth business succession planning. This is a perfect time to review and potentially update any existing buy-sell agreements, offering clients both tax efficiency and peace of mind.
2. The 2026 Estate Tax Exemption Sunset
With the current estate tax exemption set to sunset in 2026, there is an urgent need for high-net-worth clients to start planning ahead. The exemption amount is expected to drop significantly, which could lead to substantial tax liabilities for estates that exceed the new threshold. Life insurance can be a powerful tool in this context—helping to cover potential estate taxes and ensuring that wealth is preserved for future generations. This creates a timely opportunity to introduce permanent life insurance policies that can offset the future tax burden while taking advantage of the current, higher exemption amounts. Don’t wait to review this planning with your client as we expect limited scheduling with estate planning attorney’s and slower processing with insurance carriers due to the uptick in business.
3. Cash Accumulation Life Insurance as an Alternative Asset Class
As clients continue to diversify their portfolios, cash accumulation life insurance is increasingly being seen as a valuable alternative asset class. Not only can it offer tax-advantaged growth, but it can also provide liquidity and financial flexibility in uncertain market conditions. By positioning life insurance as a strategic part of a client’s broader investment strategy, you can open up conversations about wealth-building beyond traditional investment vehicles, particularly for clients looking for stable returns without market volatility.
Final Thoughts
These three topics provide an excellent foundation for year-end planning and can offer significant value to your clients. As you engage with them in the coming months, positioning these strategies could result in greater sales, stronger client relationships, and possible new client referrals.
If you'd like to discuss these topics further or would like additional resources to help with client conversations, please don't hesitate to reach out.
Let’s finish 2024 strong and set ourselves up for success in 2025+!