If you have clients or prospects who purchased variable life contracts several years ago, it is important for you to get "in-force" ledgers on their contracts to determine the premium payments necessary to keep the contracts in force to age 90, 95 and 100. Even if you illustrated a conservative earnings rate on the contract's projected performance, you probably illustrated a rate higher than the actual performance of the contract.Remember, the S&P 500 index for the last 10-years was NEGATIVE 1.46%.

National Life and Life of the Southwest have invested a great deal of time and money in a Section 79 education and marketing effort. Please take the time to review the attached slide show designed for use with CPA's and other professional advisers. You will find it informative, thorough and a helpful tool to generate new referrals and new business.

Effective 01/12/2009, the already competitive John Hancock UL-G Individual and Second-to-die products have been repriced. The new pricing reflects improved mortality statistics and results in premium reductions of from 8-12% depending on age and underwriting status. John Hancock's 99 Comdex rating and this ultra competitive new pricing make it imperative to include them in the mix when you are reviewing potential products for your clients.

We recently used this product on a $20,000,000 case and it absolutely blew the competition away!

Please take the time to check out the changes The Hartford has made to their Guaranteed UL product. The new product replaces the AUL offering and is very sharp in competitive situations. Based on their research, it is #1 in 33% of the reviewed scenarios, in the top 3 in 85% of scenarios and in the top 5 in 95%.

We have recently looked at the product in a rated case and it was best in class! Be sure to download Hartford's most current software; and, as always, call the AFP office with proposal requests or questions

"c" corporations can now take advantage of a great planning tool for their senior managers and rank and file employees. Section 79 allows a company to offer permanent life insurance to their employees. The financial advantage to the senior management employee starts with partial income attribution on the amount paid by the employer for the permanent coverage and continues with a tax-free supplemental retirement income enhanced by some tax-free death benefit. This is a WIN, WIN, WIN!

After Revenue Ruling 2007-65 and Notices 2007-83 and 84, we were very concerned about the future viability of the Welfare Benefit Plan market. Many of us had utilized this section of the tax code as a planning tool for our clients and worried that past plans would have to be terminated and that no new plans could be put in place.

After a thorough review of the current IRS position and with input from our legal, actuarial and accounting advisors; we now believe there is a viable way to go forward in this important market.

Please see my letter to Nutmeg producers and all the attachments. This is IMPORTANT!!

Corporations established under Subchapter S of the Internal Revenue Code often carry an asset on their books called a Triple “A” (Accumulated Adjustment) Account. This account represents income of the business entity that has been retained in the company. In an “S” corporation, income passes through to the business owners on their K-1 whether or not they actually receive the money.

AFP producers from around the country recently gathered in Newport, Rhode Island for two full days of learning, discussion, fun and fellowship. The presenters were prepared, focused and informative. The subject matter ranged from the technical, personified by Elizabeth McGowan's wonderful discussion of the actuarial considerations in product design to marketing ideas such as Steve Richards' review of AFPExec and its potential as a new business generator.

Recently Ron Rubin of MSL Financial was in the process of closing a new $400,000 target premium 419(e) case when he thought to ask whether the business sponsoring the new plan had a lending relationship with a bank. When the CPA attending the meeting answered that the company frequently used bank debt to finance equipment purchases, Ron asked if they understood the "technical default" language in their loan agreements. It turns out that they had absolutrely no idea that their loans could be called in the event of the death of a "major" shareholder.