Accelerated Death Benefit

[agentjhc]

What are the potential tax consequences the insurance companies warn you about if you use your ADB? It is suggested you seek tax professional before using.

 

[BNTRS]

We don't actually know b/c the IRS hasn't ruled on this yet. It'll definitely throw a wrench in the works if you happen to receive any transfer payments from the government, but if you're receiving (and esp. depending) on those, the odds of having life insurance with this benefit are pretty low.

 

[agentjhc]

Guess that makes that rider iffy on my Genworth policy...as well as those that currently offer it...

 

[LGilmore]

No put it on the policy. You can't put it on later, it costs nothing and the client doesn't have to use it. Their choice, but if you decide to skip it, and they want it later, guess who pays? Put it on or at least offer it, let it be their choice.

And I thought the IRS approved it to 24 months by the way.

 

[agentjhc]

It came with mine. I noticed Banner does not offer it on TL policies..most others seem to

 

[VolAgent]

Since most don't charge for it, I just always throw it on there. They don't have to use it, they can't even be forced to use it. It just allows options later on. Let their CPA decide on the tax consequences when the time comes.

 

[dsimo11]

Are you sure about Banner?? As of late, I have noticed that Banner and ING require the form to be signed as part of the app. I think it is now required with Banner, but I will check

 

[Cornelius]

Banner offers it but just not in all states.

 

[dsimo11]

Banner offers it but just not in all states.

Thats what I was checking on. I know I submitted a couple last thursday and the agent was in Utah. Utah is requiring it.