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Life Health > Life Insurance

As April 15 Looms, What Can You Do to Help Your Clients?

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Ah, that dreaded tax season is in full swing. People are spending more time going over bank statements, receipts, invoices and other necessary documentation in an effort to make that bottom line number as palatable as possible.

Singles, couples and small-business owners all seem to have a bit more tension in the soul as the possibility of paying Uncle Sam more money could become a reality. The days of those big, fat refund checks seem like a dream to many.

I have two scenarios to offer producers to help their clients, whether they have to pay taxes or find themselves on the receiving end.

Let’s look at the clients who most likely have to pay additional taxes. Can you identify them? Think back over the year. Did any of your clients discuss taking early withdrawals from IRAs? Deferring quarterly tax payments on small businesses? Fewer deductions? These are just a few examples of situations that may result in additional taxes — and penalties.

Now is a good time to contact those clients, especially if you can offer them some customized solutions that may help them plan to have a little extra cash for the short term and continue working with you on their long-term financial goals. This may be the time to help your clients assess their current coverage and help determine if their insurance products are right for them now. Perhaps adding a universal life insurance policy, which can accumulate cash values within the policy or on an income tax-deferred basis, is an option worth exploring.

See also: The Hidden Benefits of Life Insurance

Who might be a recipient of that refund? What clients come to mind? Perhaps this is the time to work on some new financial planning that will be far more valuable than a quick island vacation. Your counsel and advice on debt reduction, retirement savings, long-term care insurance coverage or estate planning could prove invaluable to your client.

In either case, your clients have had the benefit of knowing that you wanted to check in and offer some out-of-the-box thinking because you care. In so doing, you may have increased the level of trust your clients have in you.

For more on life insurance in tax planning, see:

Life Insurance: At the Crossroads of Death and Taxes

The Flexible Irrevocable Trust

Beat the Estate Tax Blow


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