I'm Milo, your guide through the insurance landscape and I'm writing one-minute reads for Financial Advisors and Insurance Agents. Here, I will share stories about challenges my Brokers face and the problem-solving services I provide to give the best solutions for their clients.
Recently, an experienced producer was handling a case with a small business owner. The Broker had only started working with this client a couple of months ago and during the fact-finding process, they asked their client about the Buy-Sell Agreement since there were two business partners involved. The client confirmed they had one, but admitted they hadn't revisited it for at least five years.
When the financial advisor brought the case to me for preparation, I proposed that I bring in a Case Consultant from the Guardian’s Business Resource Center (BRC) to review it to ensure everything is in order. Upon reviewing the Buy-Sell Agreement and conducting a Business Valuation, we discovered two significant issues:
First, we found that the beneficiaries on the life insurance policies were set up incorrectly, potentially leading to taxable death proceeds. They were in violation of the Goodman's rule and the beneficiary on one policy was the business owner's wife.
Significantly, we observed that the value of the business had increased over the past five years.
With the expertise of the Guardian’s BRC Case consultants and by asking the right questions, I was able to identify these major problems and communicate them to the Broker. The client was pleased that we had spotted these issues within the contract and our Broker was seen as a hero. This led to additional life insurance being added to bridge the gap and helped ensure their Buy-Sell plan was updated, properly funded, and with beneficiaries correctly set up.
If you lack the resources for a more advanced team but want to ensure your clients are in good hands and be their hero, let's have a conversation.
Guardian’s Business Resource Center can assist with:
For more insightful reads, stay tuned to Milo Minutes! I am working with Independent Financial Advisors/Investment Advisors, Independent Insurance Agents, Carrier Agents offering operational excellence, quality solutions, and an excellent service experience from start to finish.
2024-172796 Exp 4/2025
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