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CPA Ed Slott Avoiding Taxes in Retirement
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It is the FIDUCIARY DUTY of financial planners to discuss various legal instruments, such as wills and trusts. Is it their 'job'? No, their job is financial planning.
You have an odd way of looking at the English language. It's the same thing between lapse and surrender. Both are VERY different terms... yet you use them interchangeably.
Wow. Such an odd statement from someone with less than 1 year of experience. I think I'd rather listen to The American College, my licensing exams, and a CPA talk about life insurance... than you.
You are clearly confused and probably should master the vocabulary of your profession before trying to advise others on ANYTHING.
For your sake, I really hope that English is your second language.
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BTW... this is completely wrong too:
Nope. A lapsed policy is a lapsed policy. You might not be able to "re-start" it. It depends on several factors. If it's lapsed too long... you'll have to re-apply and see if one qualifies medically and financially.
A surrendered policy is one where a client pro-actively cancels their policy. They made a pro-active decision... and this is quite rare, except in 1035 exchange situations.
But the coverage is GONE. That's what it means to lapse a policy - it's a policy that is no longer in force.
Now, if you meant to say that a lapsed permanent policy essentially was a term policy because the coverage was in-force for a limited period of time... that would make sense. It became a very expensive term policy, depending on the remaining cash surrender values. But the policy doesn't remain in force. The coverage is gone.
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An attorney may draw up a trust (or in my case NOLO) but it's the FP's job to explain the need, advantages and uses unless he is an estate planning attorney and even if he is he should be working with the FP.
It is the FIDUCIARY DUTY of financial planners to discuss various legal instruments, such as wills and trusts. Is it their 'job'? No, their job is financial planning.
You have an odd way of looking at the English language. It's the same thing between lapse and surrender. Both are VERY different terms... yet you use them interchangeably.
An insurance policy is not tax-free.
Wow. Such an odd statement from someone with less than 1 year of experience. I think I'd rather listen to The American College, my licensing exams, and a CPA talk about life insurance... than you.
You are clearly confused and probably should master the vocabulary of your profession before trying to advise others on ANYTHING.
For your sake, I really hope that English is your second language.
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BTW... this is completely wrong too:
If it makes you feel better we'll used the term lapsed.
A lapsed permanent policy is effectively a term policy if you don't have the means to restart it.
Nope. A lapsed policy is a lapsed policy. You might not be able to "re-start" it. It depends on several factors. If it's lapsed too long... you'll have to re-apply and see if one qualifies medically and financially.
A surrendered policy is one where a client pro-actively cancels their policy. They made a pro-active decision... and this is quite rare, except in 1035 exchange situations.
But the coverage is GONE. That's what it means to lapse a policy - it's a policy that is no longer in force.
Now, if you meant to say that a lapsed permanent policy essentially was a term policy because the coverage was in-force for a limited period of time... that would make sense. It became a very expensive term policy, depending on the remaining cash surrender values. But the policy doesn't remain in force. The coverage is gone.
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