Developing Business Relationships with CPAs

By: Oscar Toledo, Director of Sales and Marketing, Partners Advantage

A common inquiry I receive from insurance professionals is the request for leads. We all look for those creative ideas that will help place us in front of the right clients. One suggestion is to partner with CPAs that have mutual business values and are willing to work together to develop prospects for both of you.

The first step in getting to know possible CPAs is to get to know their gatekeepers. You will find more success getting past gatekeepers if you treat them as decision-makers. Ask them a few questions about the business and make sure you make it clear that you don’t want to waste the accountant's time – or the gatekeeper's time. Communicate your reason for the visit/call and qualify the CPA. Do they already work with an insurance professional/advisor? Ask for a place on their calendar.

Once you are in the door, here are some key questions to ask during your first meeting with the CPA:

• Who is your target client?
• What kind of services do you offer?
• What are your strengths/challenges?
• What is your ideal working relationship?

Remember, the focus is to get to know them.  

Help them understand you are looking to establish a business relationship to benefit them, your shared clients, and you.  Provide examples of the type of services and solutions you offer. 

Formalize your relationship by discussing your roles and developing a plan. You should also walk the CPA through the process you take your clients, such as:

• How often you meet with your clients
• Fact-finding
• A discussion with the client to inquire about their current CPA relationship as well as other industry professionals such as attorneys, P&C, etc. 

Be a resource for the CPA, just as you expect them to be your resource. Offer to have their website link on your website, reference them in your client monthly newsletter, or ask if they would like to write an article for the newsletter.

Having a relationship with CPAs with mutual business values will help both of you develop your prospects and strengthen both of your businesses.  

Looking for more CPA relationship resources? Contact me at 888-251-5525, ext. 124 or by email at otoledo@partnersadvantage.com


For financial professional use only.  Not for use with the public.

This material is intended to provide general information only. It is not intended to render legal, accounting, Social Security or tax advice, and the services of those professionals should be sought. Financial professionals who utilize this material may be able to identify potential retirement income gaps and introduce products, such as fixed annuities, as potential solutions. The testimonial may not be representative of the experience of other financial professionals and is no guarantee of future success.  

Always follow your firm's policies and procedures regarding review and use of third-party templates, creation and distribution of client and prospect materials, hosting of client and prospect events, offering giveaways or prizes, and your firm's employment process.

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SPL: Bridging the Gap from Annuities to Life Insurance

“Change Before You Have To.” - Jack Welch

Millions of financial professionals are now confronting important choices regarding change. These are financial professionals who are currently doing a significant amount of fixed and indexed annuity business. The world is going to change in April of 2017 and it will force you to change whether you want to or not. Hopefully you are making changes to your practice prior to this “forcing event.” What is this “forcing event?” It is the DOL fiduciary rule.

The implementation of the DOL rule is forcing financial professionals to diversify their business and there is not a more perfect product for these financial professionals to look at than single premium life (SPL) insurance. However, there are many annuity financial professionals who may not understand SPL and haven’t learned how it can provide an easy bridge from annuities to life insurance. 

If you are a financial professional who has primarily done annuities in the past, we know a significant hurdle is underwriting. This is one of the strong points with most single premium life policies. As a matter of fact, most products have a simplified underwriting process that classifies risks as quickly as possible, many times within 2-3 days of submitting the application to the carrier but can be within minutes. There are usually no medical examinations or blood tests and the carrier will often conduct a point-of-sale interview. The point-of-sale interview is basically simple questions regarding health history and height and weight. 

Whether single premium or flexible premium, the IUL marketplace has grown to where it now represents 20% of the entire life insurance market today. If you have become fluent with fixed indexed annuities, it is not a difficult leap to start to market and sell IUL. 

The issue of “cost” is brought up very frequently during conversations around life insurance and especially PERMANENT life insurance. Of course, this is perpetuated by the pundits such as Suze Orman and Dave Ramsey that consistently make the blanket statement that permanent insurance is too costly and one should buy term and invest the difference. So, as I lead “indexed boot camps” across the country, my job is to educate the financial professionals on why IUL is not so expensive if designed correctly and how the financial professionals can explain this with their clients. 

Learn more in the full white paper by Charlie Gipple, CLU, ChFC, on this topic. It provides case examples, addresses costs and how you can find success in explaining these products to clients. Request the complimentary white paper below:

Fill out my online form.

Also, don't forget to join Charlie for a complimentary webinar on Tuesday, September 27 at 2pm EDT to discover how to design cost effective IUL policies.

Questions or Need Case Assistance: Contact the Partners Advantage Brokerage Team at 888-251-5525, Ext. 700.


For financial professional use only. Not for use with consumers.

This material is intended for educational purposes only and is not intended to serve as the basis for any investment or purchasing decision. Insurance and annuity products: Are not deposits. Are not guaranteed by a bank or its affiliates. May decrease in value. Are not insured by the FDIC or any other federal government agency. This information is written in connection with the promotion or marketing of the matters addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, your clients should consult their own tax or legal counsel for advice. Pursuant to IRS Circular 230, Partners Advantage Insurance Services and their representatives do not give tax or legal advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Encourage your clients to consult their tax advisor or attorney. The information contained in this article is not intended to serve as tax or legal advice and is not intended to provide financial or legal advice and does not address individual circumstances. Encourage your clients to consult their tax advisor or attorney. The information contained in this article is not intended to serve as tax or legal advice and is not intended to provide financial or legal advice and does not address individual circumstances. Both loans and withdrawals from a permanent life insurance policy may be subject to penalties and fees and, along with any accrued loan interest, will reduce the policy’s account value and death benefit. Assuming a policy is not a modified endowment contract (MEC), withdrawals are taxed only to the extent that they exceed the policy owner’s cost basis in the policy and usually loans are free from current federal taxation. A policy loan could result in tax consequences if the policy lapses or is surrendered while a loan is outstanding. Distributions from MECs are subject to federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10% additional tax prior to age 59½, with certain exceptions. These characters are fictional and are not actual customers. Your own decisions should be made in light of your own financial situations. This hypothetical examples used are for illustrative purposes only, is no guarantee of return or future performance, and does not depict the actual performance of a specific product or its investment options. In order to provide a recommendation to a client about the liquidation of a securities product, including those within an IRA, 401(k) or other retirement plan, to purchase a fixed or variable annuity or for other similar purposes, you must hold the proper securities registration and be currently affiliated with a broker/dealer or registered investment adviser. If you are unsure whether or not the information you are providing to a client represents general guidance or a specific to liquidate a security, please contact the individual state securities department in the states in which you conduct business. Indexed Universal Life is not a stock market investment and does not directly participate in any stock or equity investments. Market Indices do not include dividends paid on the underlying stocks, and therefore do not reflect the total return of the underlying stocks; a market-indexed insurance product is not comparable to a direct investment in the equity markets. Clients who purchase IUL are not directly investing in a stock market index.

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Choosing the Trustee of an ILIT

This is an Advanced Markets Minute provided by and used with permission from Mutual of Omaha - Advanced Markets

Despite higher exemptions, there are still clients who will face federal estate taxes. An irrevocable life insurance trust (ILIT) is still an effective solution to pay for federal estate taxes. The ILIT is a mainstay in the life insurance industry but selecting a trustee has become more challenging. 

Corporate trustees and banks traditionally served as trustee to ILITs. However, many corporate trustees are no longer willing to serve, at least prior to the death of the insured. This is particularly a problem when an ILIT only holds a life insurance policy or there isn’t an existing relationship with the insured.  

Some of the duties that a trustee of an ILIT must perform while the policy is in force include the following: 

• Timely payment of policy premiums 
• Create and send annual Crummey Notices to beneficiaries
• Management of Split Dollar Arrangement (if applicable) 
• Annual insurance policy review 

Because trustee duties involve administrative duties, fiduciary obligations and a good understanding of life insurance, it is prudent to employ a trustee that is experienced in administering ILITs. But if trust companies and banks are not willing to perform these duties, who is? 

Often family members or other professional advisors are asked to be the trustee of an ILIT. Family members are familiar with family dynamics and may know more about a family member’s history and specific needs which can make administering trust distributions a little easier. A professional advisor such as an attorney or CPA may be more familiar with the tax and legal requirements associated with an ILIT. So a good solution when you can’t find a corporate trustee or bank might be a team approach.  

Maybe the client appoints a relative or friend as the trustee and allows them to hire professional advisors to work with them. The professional advisors could handle the yearly notices; administer split dollar plans or gift tax filings, if necessary, along with policy oversight and review. This approach to trust administration may solve a client’s problem with finding a trustee willing and able to perform the important duties of managing the ILIT. 

Contact Partners Advantage for complete Advanced Markets assistance at 

888-251-5525, Ext. 700

For financial professional use only. Not for use with consumers.

This is for informational purposes only.  Recommendations for financial product or financial strategies must be suitable for the individual based on their circumstances. Mutual of Omaha does not give tax advice.

The advice provided in this communication is not intended or written by the practitioner to be used and may not be used by you for the purpose of avoiding penalties that may be imposed by the IRS or any other taxing authority.

The advice in this communication was written to support the promotion or marketing of the transaction(s) or matter(s) addressed by the written advice.

You should seek advice based on your particular circumstances from an independent tax advisor.

IUL: Cost Is An Issue Only In The Absence Of Value

Charlie Gipple has been showing financial professionals across the country why IUL policies aren't expensive if they're designed correctly. He can also help show you how to explain it to your clients in a way they will understand.
Join Charlie for a complimentary webinar on Tuesday, September 27 at 2pm EDT to discover how to design cost effective IUL policies. After the webinar, you'll now how to...

• Overcome the blanket statements made by television/radio financial personalities about permanent insurance being too costly
• Walk your clients through a hypothetical scenario and show them that IUL policies can be quite reasonable in price
• Show your clients tax advantage opportunities IUL policies offer 

REGISTER NOW

PLUS: Webinar attendees will receive the complimentary white paper:

IUL: Cost is Only an Issue in the Absence of Value

For Financial Professional Use Only. Not for use in solicitation or advertising to the public.

Indexed Universal Life is not a stock market investment and does not directly participate in any stock or equity investments. Market Indices do not include dividends paid on the underlying stocks, and therefore do not reflect the total return of the underlying stocks; a market-indexed insurance product is not comparable to a direct investment in the equity markets. Clients who purchase IUL are not directly investing in a stock market index.

Pursuant to IRS Circular 230, Partners Advantage Insurance Services and their representatives do not give tax or legal advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Encourage your clients to consult their tax advisor or attorney.

The information contained in this article is not intended to serve as tax or legal advice and is not intended to provide financial or legal advice and does not address individual circumstances.

Indexed universal life insurance policies contain fees and expenses, including cost of insurance, administrative fees, premium loads, surrender charges and other charges or fees that will impact policy values.

Both loans and withdrawals from a permanent life insurance policy may be subject to penalties and fees and, along with an accrued loan interest, will reduce the policy's account value and death benefit. Assuming a policy is not a Modified Endowment Contract (MEC), withdrawals are taxed only to the extent they exceed the policy owner's cost basis in the policy and usually loans are free from current federal taxation. A policy loan could result in tax consequences if the policy lapses or is surrendered while a loan is outstanding. Distributions from MECs are subject to federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10% additional tax prior to age 59½, with certain exceptions.

These characters are fictional and are not actual customers. Your own decisions should be made in light of your own financial situations. The hypothetical examples used are for illustrative purposes only, is no guarantee of return or future performance, and does not depict the actual performance of a specific product or its investment options.

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Critical Updates Impacting our Industry

Big changes are taking place in our industry right now, including dropping rates, commission changes, economic and regulatory issues. 

You need to know the what, why and how it impacts you and your clients! If you missed our critical updates call on August 26, please call the Partners Advantage Brokerage Team for updates on these important changes:
888-251-5525, Ext. 700

Listen to the replay of the August 26 critical industry updates here. This 30-minute call replay provides some very important product, carrier and industry updates

For financial professional use only. Not for use with consumers.

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Expand and Diversify with Life Insurance

If your answer is YES, Partners Advantage would like to help! Whether you have a vast life insurance “back office” or no back office at all for life insurance, we have the infrastructure that can help you build your life insurance business. Now is an important time to diversify.

We can help you add Single Premium Life Insurance, Indexed Universal Life Insurance, Whole Life, Term and other attractive products to your stable of offerings; products which can be a strong fit for your financial professionals and their client base.

Plug into resources and experience that can allow you to bring life insurance sales and opportunities onboard now!

• Access to industry leading life insurance carriers and products
• In-house underwriting team to help place cases more quickly and smoothly
• Advanced markets specialist for complex cases
• Training and sales ideas to empower your team
• Staff support and technology to help smooth out the process

Choose from our Platinum or Premier platforms. We have options tailored to fit most agencies. If you’re looking for an enhanced business growth strategy, succession plan or considering selling your agency, we can help.

We can provide you with access to more highly sought-after carrier relationships and most of the top insurance carriers in nation. Partners Advantage has done more than $150 million in life premium and more than $3 billion in annuity premium the past three years. Your agency can benefit by leveraging the value we bring to you and by being a part of our network.

Learn More About Opportunities for Your Agency.

Contact Us at 888-251-5525

Scott Tietz, CEO, Ext. 103 • James Wong, President, Ext. 110

Charlie Gipple, Senior VP, Ext. 358

For financial professional use only. Not for use with consumers.

Indexed universal life insurance policies contain fees and expenses, including cost of insurance, administrative fees, premium loads, surrender charges and other charges or fees that will impact policy values.

Keep in mind that most life insurance policies require health underwriting and, in some cases, financial underwriting. Each case is individually underwritten as the severity of medical conditions varies among individuals. Formal underwriting evaluation and pricing is based on the individual characteristics of each case.

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