Ernst & Young’s study provides a rigorous, data-driven validation of integrated retirement planning

As a financial professional, you’re continually seeking ways to optimize retirement income strategies in the face of increasing longevity, market volatility and evolving client expectations. A recent study by Ernst & Young, Benefits of Integrating Insurance Products into a Retirement Plan (2025), offers compelling evidence that incorporating insurance-based strategies, specifically indexed annuities (IA) and indexed universal life (IUL) insurance, into retirement portfolios can potentially enhance client outcomes.

Learn more about Ameritas index annuities

Learn more about Ameritas indexed life insurance

Study design and methodology

The analysis employed Monte Carlo simulations across 1,000 market scenarios, incorporating randomized inputs for interest rates, inflation, equity returns and bond yields. The study evaluated six retirement strategies across three investor starting ages (35, 45 and 65):

1. Investment-only
2. IUL and investments
3. IA and investments
4. Single Premium Immediate Annuity (SPIA) and investments (age 65 only)
5. Integrated strategy: IUL, IA and investments
6. IUL, SPIA and investments (age 65 only)

Each strategy was assessed based on two key metrics:

• After-tax retirement income sustainable in 90% of scenarios.
• Legacy value at the end of the time horizon, net of taxes.

Key technical findings

1. IUL and IA outperform fixed income.

Both IUL and IA consistently outperformed fixed income allocations over the long term. This is attributed to:

• IUL: Cash value accumulation, downside protection and tax-advantaged access through policy loans during market downturns¹.
• IA: Enhanced income through index-linked growth, guaranteed² lifetime withdrawal benefits and principal protection.

2. Integrated strategies yield stronger outcomes.

For a 65-year-old couple allocating 30% of their initial retirement wealth to IUL and 30% to an IA:

• Retirement income increased by 5.5%.
• Legacy value increased by 29.6% compared to investment-only strategies.

These results demonstrate that even at retirement age, integrated strategies can enhance both income and legacy outcomes, especially when combining insurance products with traditional investments. Similar benefits were observed across younger age groups as well, with increased allocations to insurance products yielding stronger financial outcomes over time.

3. Asset allocation efficiency

In integrated strategies, insurance products were treated as part of the fixed income allocation. This allowed for a reduction in bond exposure while maintaining or improving portfolio stability. Allocation combinations were tested in 10% increments, with caps at 60% for IUL and 30% for IA.

4. Tax optimization

IUL and IA offer tax advantages:

• IUL: Tax-deferred growth, typically tax-free death benefit and tax-advantaged access via policy loans¹ (assuming non-MEC status).
• IA: Tax-deferred accumulation and predictable income taxed at ordinary rates upon distribution³.

These features can help contribute to higher net retirement income and legacy values, especially when withdrawals from qualified assets are minimized.

5. Market volatility buffering

The cash value of an IUL policy can serve as a liquidity buffer during market downturns. By accessing policy loans instead of selling equities at a loss, clients can help preserve portfolio value and reduce sequence-of-returns risk. This dynamic can help improve long-term outcomes and can support equity allocations elsewhere in the portfolio.

6. Customization based on client priorities

Ernst & Young’s modeling shows that:

• Higher IA allocations favor income maximization.
• Higher IUL allocations favor legacy preservation.
• Balanced allocations (e.g., 30% IUL + 30% IA) optimize both outcomes.

This flexibility allows advisors to tailor strategies based on client goals, risk tolerance and time horizon.

Comparative performance metrics

These results demonstrate that while deferred income annuity-only strategies may yield higher income, integrated strategies offer a more balanced improvement across both income and legacy metrics and do so consistently across all age groups.

Implementation considerations

• Product selection: Financial professionals must evaluate IA and SPIA features such as guaranteed lifetime withdrawal benefits, inflation protection and payout options. For IUL, policy structure, index crediting methods and loan provisions are critical.
• Tax planning: Ensure IUL policies are not MECs to preserve tax advantages. Coordinate annuity distributions with other income sources to manage tax brackets.
• Liquidity needs: While IAs and SPIAs offer guaranteed income, they reduce liquidity. IUL can offset this by providing accessible cash value.
• Client suitability: Younger clients benefit from long-term compounding in IUL; older clients may prioritize income from an IA or SPIA.

Why Ameritas?

Ameritas offers competitive products that align closely with the integrated retirement planning strategies validated by Ernst & Young’s 2025 study.

Ameritas index annuities offer flexible lifetime income options, including guaranteed lifetime withdrawal benefits and inflation-sensitive roll-up rates; market-linked growth potential and principal protection.

Ameritas IUL policies provide structured flexibility, multiple index crediting strategies, and both fixed and variable loan provisions to support long-term cash value growth.

Compass SPIA delivers immediate, guaranteed income for life or a set period with predictable payouts.

In addition, Ameritas supports financial professionals in implementing integrated retirement planning strategies through a robust network of specialized teams designed to enhance your success.

• The Advanced Planning team provides guidance on complex planning scenarios, leveraging sophisticated financial tools to help you present and implement strategies.
• The Sales Development and Distribution teams offer tailored training, marketing resources and case design support to help you confidently present and implement insurance-based strategies.
• The Internal Sales Desk delivers real-time product expertise and illustration support, ensuring you can model scenarios aligned with client goals.

These collaborative teams empower financial professionals to deliver personalized, outcome-driven retirement strategies by combining Ameritas’ product strengths with strategic planning insights, ultimately helping clients achieve greater income security, legacy value and portfolio resilience.

A framework for the future of retirement planning

Ernst & Young’s study provides a rigorous, data-driven validation of integrated retirement planning. The implications are clear: combining fixed indexed annuities and indexed universal life with traditional investments can help enhance portfolio efficiency, improve client outcomes and offer a more resilient framework for retirement income planning.

This approach is not a replacement for traditional investments, but a strategic enhancement. By leveraging the unique strengths of insurance products – guaranteed income, tax efficiency and market buffering – you can deliver more personalized, outcome-driven retirement strategies.

¹Loans and withdrawals will reduce the life insurance policy’s death benefit and available cash value. Excessive loans or withdrawals may cause the policy to lapse. Unpaid loans are treated as a distribution for tax purposes and may result in taxable income. 

² Guarantees are based on the claims-paying ability of the issuing company.

³ Withdrawals of annuity policy earnings are taxable and, if taken prior to age 59 ½, a 10% penalty tax may also apply.

Representatives of Ameritas do not provide tax or legal advice. Please refer clients to their tax advisor or attorney regarding their specific situation.

In approved states, Ameritas indexed universal life insurance products are issued by Ameritas Life Insurance Corp. In New York, life insurance is issued by Ameritas Life Insurance Corp. of New York. 

In approved states, Ameritas annuities are issued by Ameritas Life Insurance Corp.  

When it comes to financial risks, affluent white-collar professionals may appear well-protected. They typically have access to a strong benefits package, high earnings and a solid understanding of personal finance. But beneath the surface lies a critical vulnerability, one that often goes unnoticed until it’s too late: income protection.

For financial professionals, this market presents one of the most overlooked yet potentially rewarding opportunities in the disability income insurance space. Those in this market may not think they need additional coverage, but most are underinsured when it comes to protecting their income in the event of a disability.

Here’s why now is a good time to focus on this affluent segment and how you can become an essential resource in helping them protect their financial foundation.

1. High-income protection gaps

Group disability insurance through an employer often covers only a portion of salary—typically around 60% of base pay. It often excludes bonuses, commissions and equity-based compensation. For many professionals, those elements can make up a large share of their total income.

What happens if they can’t work due to sickness or injury? They may find that the benefit they counted on is only covering a fraction of their actual earnings. That income gap can have major consequences, delaying retirement, derailing college funding plans or forcing tough lifestyle decisions. Identifying and addressing this gap is a powerful way for financial professionals to add immediate value.

2. Greater need for supplemental coverage

This is where individual disability income insurance comes in. A well-designed DI policy can supplement group benefits and provide additional coverage to help bridge the income gap. It offers flexibility, stronger definitions of disability and a chance to help ensure clients can maintain their lifestyle and financial goals even if they’re unable to work.

Framing this conversation around continuity and control resonates. Professionals want to protect what they’ve built. Supplemental DI coverage helps them do just that.

3. Favorable underwriting for white collar professionals

One of the advantages of working with white-collar professionals is that they’re typically considered lower risk from an underwriting standpoint. As a result, they often qualify for:

• Higher monthly benefit limits.
• Own-occupation definitions of disability.
• Enhanced contract provisions and riders.
• More favorable premium rates.

This helps make the underwriting process smoother and makes it easier for you to place policies.

4. Strong ability to pay

Affluent professionals understand value. When presented with a clear case for protecting their income, they’re often more open to investing in comprehensive coverage, especially when the benefits are explained in the context of lifestyle preservation and long-term planning.

Affordability tends to be less of a barrier in this market. Instead, the conversation is about how the policy fits into their broader financial strategy.

5. Cross-selling and referral potential

One of the most powerful aspects of working with professionals is their tendency to refer other high-income individuals. These clients are often well-connected in their industries and social networks, making them a valuable source of referrals.

In addition, DI insurance frequently opens the door to broader conversations. Once a professional sees the value you bring in helping solve their income protection gap, they’re more likely to engage with you on other needs—life insurance, long-term care planning or business succession strategies. DI insurance should be a relationship starter, not just a transaction.

6. Certain industries are ideal entry points

Some industries stand out for their reliance on consistent, high-level income—and the gaps created by employer coverage limitations:

• Legal: Attorneys often have complex compensation structures with performance-based bonuses.
• Healthcare: Physicians and specialists rely on their ability to practice in a specific field, making own-occupation coverage essential.
• Finance: Bankers and advisors often have high incomes supplemented by commissions and bonuses.
• Technology: Professionals may receive stock options or equity that wouldn’t be factored into standard group DI benefits.

Targeting these niches allows you to tailor your approach and speak directly to the pain points in each profession.

Navigating common challenges

While this market offers strong potential, it does require a thoughtful, consultative approach. Consider these common hurdles—and how to address them:

• Assumed adequacy: Many professionals mistakenly believe their employer coverage is sufficient. Start the conversation by offering to review their current benefits. A quick analysis can reveal significant gaps and create urgency.
• Complex compensation: Bonuses, equity and deferred comp add layers of complexity. Ameritas understands these nuances and offers products designed for sophisticated income structures.
• Limited time: These clients are busy. Focus on streamlined processes, efficient meetings and digital tools that make the experience as frictionless as possible.

As a financial professional, you understand the unique challenges business owners face when planning for retirement. Traditional retirement tools like 401(k)s and Social Security often fall short for high-income earners, leaving a gap between the retirement funds needed and those available. This is where life insurance within a qualified retirement plan may be a game-changer for your business owner clients.

Flexibility and choice

Take the next step in your RIA journey with Ameritas. We focus on the resources you need to succeed, while giving you the freedom to serve your clients’ unique needs.

Learn more about Ameritas

Why should financial professionals consider this strategy?

1. Tax advantages: Life insurance within a qualified retirement plan, such as a 412(e)(3) plan, allows business owners to make tax-deductible contributions. These contributions can be used to purchase life insurance and fixed annuities, which grow tax-deferred until retirement. This reduces taxable income today while funding future retirement needs.

2. Enhanced retirement savings: By leveraging life insurance, business owners can save more for retirement. The cash value of the life insurance policy grows tax-deferred, providing a boost to retirement savings without additional out-of-pocket expenses.

3. Flexibility and options: Upon reaching retirement age, business owners have several options for handling the life insurance policy:

• Surrender the policy: Roll the proceeds into an IRA, providing additional retirement funds and flexibility to cover expenses.
• Distribute the policy: Become the owner of the policy, maintaining coverage and ensuring financial protection for the family, especially valuable if the client is no longer insurable.

4. Financial protection: If the business owner passes away before retirement, the life insurance policy guarantees that the retirement benefits are available for their family, ensuring financial security even in their absence.

How does it work?

A 412(e)(3) plan, also known as a fully insured defined benefit plan, is funded exclusively by insurance products, such as annuities and life insurance. Here’s how it works with life insurance:

1. Funding: The plan is funded through the purchase of life insurance policies and annuities. These insurance products guarantee the benefits promised by the plan, provided that the premiums are paid as required.

2. Premium payments: The plan requires level annual premium payments, which must be paid until the participant reaches retirement age.

3. Guaranteed benefits: The benefits provided by the plan are guaranteed by the insurance carrier. This means that as long as the premiums are paid, the benefits are secure and not subject to market fluctuations.

4. Tax advantages: Premiums paid for the life insurance policies within the plan are tax-deductible for the employer. Additionally, the cash value and death benefits of the life insurance policies can grow tax deferred.

5. No loans: Participants cannot take loans against the life insurance policies within a 412(e)(3) plan.

This type of plan is particularly beneficial for small business owners looking for a secure retirement plan with guaranteed benefits and tax advantages.

Reasons to present this strategy to business owner clients

1. Closing the retirement gap: This strategy helps business owners bridge the gap between what traditional retirement tools provide and what they need for a comfortable retirement.

2. Tax efficiency: The tax-deductible contributions and tax-deferred growth offer significant tax advantages, making it an attractive option for high-income earners.

3. Comprehensive financial planning: Incorporating life insurance into a retirement plan adds a layer of financial protection, ensuring that the client’s family is taken care of in case of premature death.

4. Flexibility and control: The various options available at retirement provide business owners with the flexibility to choose the best course of action for their unique situation.

By presenting this strategy to your business owner clients, you can help them achieve a more secure and flexible retirement plan, leveraging the benefits of life insurance to enhance their overall financial well-being. Share this article Using Life Insurance for Retirement Funding with your clients to get the conversation started.

Give us a call at 800-255-9678, option 3 if you’d like to learn more about how life insurance can fit into a client’s financial strategy.

Representatives of Ameritas do not provide tax or legal advice. Please refer clients to their tax advisor or attorney regarding their specific situation.

Products and riders may not be available in all states or in all distribution channels. Optional provisions and riders may have limitations, restrictions and additional charges.

All guarantees are based upon the claims-paying ability of the issuing company and do not apply to the investment performance or account value of the underlying variable portfolios. Policy features may vary and may not be available in all states.

Variable products are issued by Ameritas Life Insurance Corp. and underwritten by its affiliate Ameritas Investment Company, LLC. They are subject to investment risk, including loss of principal.

Variable products are suitable for long-term investing and are subject to investment risk, including possible loss of principal. Before investing, carefully consider the investment objectives, risks, charges and expenses and other important information about the policy issuer and underlying investment options. This information can be found in the policy and investment option prospectuses, which are available by calling 800-255-9678 or online at ameritas.com/prospectuses. Please read the prospectuses carefully before investing or sending money. Products are not available in NY.

You may be well known for life insurance, established in providing retirement planning strategies or a professional in wealth management. But if you aren’t offering comprehensive financial strategies to your clients, you may be missing out on more than just additional revenue for your business.

When it comes to what clients want from a financial professional, the answer is often: as much as you can provide. While it may at first seem daunting to add or deepen areas of service within your business, the benefits of offering comprehensive financial services are hard to ignore.

A powerful opportunity to deepen client relationships

At Ameritas, we take pride in the enduring, trust-based client relationships our financial professionals have fostered with their clients. Adding additional services can strengthen those relationships even more.

“Providing comprehensive financial strategies benefits the clients, first and foremost,” explains Shannon Berry, vice president of advanced planning at Ameritas. “Without reviewing a client’s full financial picture, any transactional recommendation may have risk to it. A particular product may seem ideal for a client’s stated need, but if I’m looking at everything in their portfolio—life insurance, retirement plan, investment accounts—I can help ensure all their products fit together for long-term protection and growth potential.”

A holistic approach to financial services also allows you to adjust to change in a client’s life, whether that change is personal or market-driven. Because you manage your clients’ complete financial picture, you can help them pivot as needed. This is especially important in volatile financial markets and frequent regulatory changes. Read our blog about supporting clients during volatile markets for more tips on this topic. You’re also there for each new life stage your client experiences. Starting a new family or a new business, navigating retirement or facing the death of a loved one.

Adding new clients to your practice

Offering comprehensive financial services doesn’t only provide the potential to enhance the lives of your long-term clients. By adding new services, you’ll also be able to strengthen your value proposition for new clients who are looking for a “one-stop-solution” for all their financial needs. Now more than ever, clients are seeking out financial professionals who showcase a depth of knowledge in different financial domains. Such experience can help clarify a client’s decision-making process and help them feel that all their financial needs are being addressed.

Importantly, this approach may allow you to welcome clients into your practice no matter where they are on their financial journey—and then help position them on the path toward long-term success.

Taking advantage of cross-marketing opportunities

The additional opportunities provided by offering comprehensive financial services will help strengthen your business’s revenue potential. A diverse portfolio of financial services allows you to take advantage of cross-selling opportunities with life insurance, investment strategies and retirement planning, just to name a few.

Taking a comprehensive view also creates the opportunity to find suitable products for multiple client needs, such as living benefits that can help provide funds for a chronic illness. The conversation becomes about multiple ways to help clients reach their goals and protect their futures.

For example, while life insurance is a key protection component of any financial strategy, it often represents a single sale. Permanent life insurance works best when reviewed regularly to ensure the policy chosen still fits the client’s needs. In addition, ongoing financial planning can serve as a long-term revenue stream that may help you grow in all market conditions—and increase your value long-term.

These cross-marketing opportunities pay dividends in client loyalty as well. “What makes offering comprehensive financial services so appealing is that the conversation shifts,” says Shannon. “The client has incentive to grow with you, because you already have so many pieces in place. If you’re handling all elements of their plan, it will be difficult for an outside financial professional to be able to come in and take one piece away. That doesn’t make sense for most people. And they also become less concerned about a single element in their portfolio, or whether the market goes up and down in a particular quarter, because they’re looking at where they are in the plan overall.”

Are you preparing your clients for headwinds ahead?

Without a comprehensive financial strategy, it’s difficult for most financial professionals to recognize a potential estate tax issue or design effective tax strategies for an efficient retirement. A client may be charitably minded, but may not be making their contributions as efficiently as they might. Financial software can help demonstrate upcoming challenges and how proposed strategies or products can help. With the possible sunset of the Tax Cuts and Jobs act of 2017, it’s more important than ever to prepare clients for the future.

Where to get started

It can seem daunting to expand your business to offer additional services. Fortunately, Ameritas is dedicated to helping financial professionals overcome those challenges. Once licensed with affiliate Ameritas Advisory Services, LLC, financial professionals may be surprised to learn how much we have to offer to train and support your staff.

“Adding these financial services doesn’t mean that the financial professional is doing additional data entry or managing the details—not at all,” explains Shannon. “We help every day with training on the tools available to help build these services into your practice. Whether you start with existing staff or add interns, we can provide training and support for them every step of the way. There are even portals that allow the client to do some of their own data entry, which helps as well. Bottom line, we’ll ensure you have the systems and structure in place to confidently enter the market with these services—and a support system to help you succeed.”

That support team goes beyond the Ameritas home office, too.

“We’re lucky to have a number of financial professionals with Ameritas who are skilled at comprehensive financial planning with well-trained, caring teams and a truly personal engagement with their clients,” Shannon says. “These financial professionals are willing and eager to help others expand their practices in similar ways. It’s an extraordinary collegial atmosphere. They learn from each other and grow from each other—and they are incredibly welcoming to new financial professionals who want to learn the same. So for financial professionals who are interested, we have everything you need to get started.”

Ready to get started? Learn more about growing your financial practice with Ameritas and how we can help you succeed.

In approved states, life insurance is issued by Ameritas Life Insurance Corp. In New York, life insurance is issued by Ameritas Life Insurance Corp. of New York.

Securities offered through affiliate Ameritas Investment Company, LLC, member FINRA/SIPC. Financial planning and investment advisory services offered through affiliate Ameritas Advisory Services, LLC.

Over the past century, financial markets have experienced various periods of significant volatility—resulting in both losses and gains for investors. As a financial professional, you know the value of staying invested during volatile markets, particularly for clients who are investing for the long term.

But how do you keep clients focused on that far-off horizon? With conflicting financial information available, communicating to your clients the importance of a sound and diversified long-term investment strategy is critical.

“At Ameritas, we focus on managing risk in our investments,” said Tina Udell, senior vice president – chief investment officer of Ameritas. “We do this through diversification, matching cashflows of assets with liabilities, and ensuring we have enough liquidity to meet our commitments. These strategies help protect our portfolios from unexpected risks and market disruptions, allowing our asset managers to find opportunities even during challenging times.” 

Volatile periods are a time when clients are eager to hear from you to get an explanation and to receive some guidance on what they should do. Most clients are not looking for technical analysis of what is going on in the markets. Instead, they want reassurance that they’re on the right track.

For newer clients, a good place to begin is explaining the reasons behind market fluctuations. Then you can discuss how best to weather the storms of investing in volatile markets—and what products can help diversify their portfolio.

Share the history of market cycles

As you discuss market volatility, tell your clients that corrections are a normal and healthy part of market cycles. Point to historical data that shows the frequency of similar events.

The U.S. is no stranger to market fluctuations—or to the impacts of massive market shifts. The most well-known example is the Great Depression of the 1930s, when plunging prices caused a national crisis. Before that market drop, however, the U.S. enjoyed a decade of rapid financial growth. This period, known as “the roaring twenties,” was filled with technological advancements, increased industrial production and easy access to credit for investors who had survived both the first World War and the worldwide influenza epidemic of 1918. This influx of money and buoyant atmosphere led to a speculative frenzy in the market…which corrected sharply with the market crash of 1929.

Another key period of market volatility took place in the 1980s and 1990s, when investors saw the rise of technology companies. This served to drive prices up very quickly, particularly in the tech sector but also in supporting business sectors. After several years of prosperity—and due in part to a marked lack of enforcement of credit and borrowing practices—the U.S. and world experienced the housing crisis of 2008. The market dropped swiftly, financial institutions faced severe liquidity issues and housing prices plummeted.

Sharing additional historical context can help put your clients at ease:

• It’s not unusual to have more than one correction during a bull market. History has shown that some of the worst short-term losses in the market were followed by rebounds.
• Since its inception, the market has experienced bull markets, corrections, bear markets and crashes. Through all the ups and downs, the market has historically trended higher; however, past performance does not guarantee future results.

What’s driving market volatility?

Given that these cycles keep repeating, what are the key factors that lead to market volatility? They can be broken down into economic, political and emotional triggers.

Economic triggers. Investors in the market rely on data to make their investment decisions, and that data is generally drawn from economic indicators such as the growth of the U.S. gross domestic product (GDP), employment rates, inflation and interest rates. When the economic data is good, investor confidence goes up and more money tends to be invested. When economic data is more challenging, fear and uncertainty cause investors to adopt more conservative investing practices.

Corporate earnings also play a role. If a company (or a group of companies in the same sector) performs well, markets stay stable. If a company doesn’t perform well, investors might decide to sell their shares in that company, contributing to market volatility.

Political triggers: Political instability—both in the U.S. and internationally—can also lead to market disruption. This instability can be caused by trade interruptions, major policy changes, wars or regional conflicts or natural disasters that impact a country’s ability to export or import goods. The result is usually market volatility. Investors are forced to assess the risks and opportunities these events create, and their decisions can send prices up…or down.

Emotional triggers: Although investor decisions are generally based on solid financial strategy and a cool, considered valuation of companies and products, emotions can still play a significant role in the market. When investors panic and sell all at once, overall prices can drop. When optimism is high and investors buy aggressively, prices can rise rapidly. The greater the emotional swing, the stronger the overreaction of the market—which will eventually correct itself and move back in the other direction.

Encourage your clients to stick to their long-term strategy. People tend to get out of the market at a time when they may have already lost money. Then they think they can get back in when it starts to go back up. By then, significant gains could have already been made. Bad timing can be very costly.

Discuss the importance of diversification

Having a diversified portfolio helps to survive market volatility. This means not only investing in companies across several business sectors, but also including several different types of products in an investment portfolio. In addition, clients who focus on a long-term investment horizon can absorb the negative impacts of a short-term fluctuation, while taking advantage of the overall growth potential of the market.

Key products like life insurance and fixed annuities can help strengthen and stabilize an investment portfolio, helping clients stay focused on the long-term growth of their investments.

Life Insurance – Life insurance can help round out a client’s overall portfolio by offering the potential for guaranteed growth and protection regardless of market performance. Share this blog article with clients to show them how life insurance can help them manage market volatility. Simply select a social media share button at the end of the article to post it to your own social media feed.

Fixed annuities – An indexing strategy using an indexed annuity may help protect against market fluctuations. This gives your client the potential to earn higher returns with an interest rate that’s linked, in part, to the performance of one or more market indexes. Since they’re not investing in an actual index, they are protected from market losses. They won’t lose money due to negative index performance. Share this blog article with clients to show them how an indexed annuity helps protect against market volatility. Share it with clients by selecting a share button at the end of the article.

A diversified portfolio that includes life insurance and fixed annuities doesn’t guarantee profits or completely shield a client from losses, of course. But it can help provide a stable foundation for a client’s investments and give them the confidence necessary to stay invested during volatile markets.

Surviving market volatility

Remind clients that they’ve planned for the long-term, with short-term volatility in mind. While a correction can be upsetting, there’s no reason to deviate from their long-term financial strategy. You might consider sharing this blog with your clients, 7 Tips for Surviving Market Turbulence.

Over time, the economy expands, companies create new products and services and new opportunities emerge. Staying the course with investments over many years provides the potential to participate in the benefits of these developments. In addition, the compounding effect of reinvesting earnings over many years could also increase a client’s earning potential.

Although volatility can be unnerving for clients looking solely at short-term impacts, the U.S. market has shown remarkable resilience over time as well as consistent, long-term growth. Why? The market is based on thousands of companies whose primary goal is to generate profits year after year, and those profits have the potential to drive prices higher. However, it is important to note that past performance does not guarantee future results.

In approved states, life insurance is issued by Ameritas Life Insurance Corp. In New York, life insurance is issued by Ameritas Life Insurance Corp. of New York.

Securities offered through affiliate Ameritas Investment Company, LLC, Member FINRA/SIPC. Financial planning and investment advisory services offered through affiliate Ameritas Advisory Services, LLC.

With the wide range of financial products available for your clients today, you may be wondering if annuities make sense to include as part of your portfolio. At Ameritas, we’re proud to offer financial professionals a full suite of products to help fit your clients’ needs, including those clients interested in the guarantees* and stability that annuities can offer.

When it comes to deciding if offering annuity products is right for you, it’s helpful to understand what annuities are—and what they aren’t.

Guaranteed income for life

The top benefit of annuities is a powerful selling point: stable and reliable income that lasts a lifetime. Based on the annuitization option your client selects, they can depend on their annuity for income in a way that typically can’t be matched by other products. Because such guarantees are based on the claims paying ability of the issuing company, it’s important to choose your annuity provider carefully. Fortunately, Ameritas has a proven track record of financial strength—and a long history of annuity expertise.

Given today’s volatile market, rising inflation and aging population, don’t be surprised if your clients show a particular interest in guaranteed lifetime income—even if they’re already working hard to prepare for retirement.

According to a 2022 defined contribution retirement income study conducted by independent investment management company Invesco, 68% of participants in defined contribution plans still worry that they will eventually run out of money, and overall, 94% of respondents want a guaranteed lifetime income solution that provides stable, predictable income where—once again—they won’t run out of money.

In addition to guaranteed income, annuities offer a way for your clients to help protect their assets against market downturns, build retirement income potential or even leave a protected legacy to loved ones—all while allowing them the security of knowing they can access these funds in the event of a life change. Depending on the policy and the state of issuance, clients may be able to withdraw a portion of their deposits without a surrender charge or may be able to access their account free of charge to pay healthcare expenses.

A flexible and powerful retirement savings tool

For clients eager to look beyond defined benefit plans and Social Security for retirement income, annuities can address many retirement planning challenges:

• A buffer against market volatility. In fixed or fixed-indexed annuities, these products offer a guaranteed rate of return, ensuring that your clients’ principal investment remains intact. This can be particularly appealing to risk-averse individuals who want to safeguard their retirement funds.
• A predictable income stream. While many clients tend to think about their retirement nest egg as a lump sum, an annuity payout can be fixed over time, helping provide financial stability throughout retirement.
• Tax management. Annuities offer tax-deferred growth, ensuring that clients don’t pay taxes on earnings until they withdraw funds. This can potentially lower their tax liability and allow their investment to grow at a faster rate over time.
• Legacy planning. Unlike many other retirement funds, some annuities offer death benefits that allow your clients to pass on the remaining funds to beneficiaries after their death.

Diversification and risk management are essential elements of any retirement portfolio, and annuities provide an excellent avenue for your clients to diversify their investments and manage risk effectively. Additionally, annuities often have higher contribution limits compared to other retirement accounts, allowing them to save more for the future.

A newly popular choice for planning

As more individuals are becoming aware of the importance of saving for retirement, the demand for retirement products and services is on the rise—especially annuities. According to LIMRA, as of the first nine months of 2023, annuity sales increased 21% to $270.6 billion. Total sales increased 10% year-over-year to $88.6 billion in the third quarter 2023. LIMRA currently estimates that annuity sales exceeded $350 billion in 2023, which is more than 10% higher than the record set in 2022.

What does that mean for you and your clients? For starters, it makes the conversation about annuities far easier. Annuities have been discussed far more favorably in financial media over the past few years, so it’s likely that many clients who previously may have held negative associations with annuities, no longer have that hesitation.

To discuss annuities effectively with your clients, start by gaining a thorough understanding of their financial situation, including their income, expenses, assets, liabilities, retirement goals, risk tolerance and any existing retirement savings or investments. Then, look to their unique concerns when it comes to retirement planning. If longevity risk, market volatility, inflation protection and/or legacy planning are important to them, an annuity may be a solid fit.

The right choice for your clients?

By offering annuities, you can provide your clients with a valuable retirement planning solution that can help secure their financial future. This not only strengthens your relationship with existing clients but also could attract new clients who are seeking reliable retirement options.

Annuities are not ideal for every investor, of course, and it’s important to explore your clients’ willingness to keep their funds in the account for the full term to avoid potential surrender charges. You should carefully review the terms and conditions, including fees, expenses, caps, investment objectives, surrender charges and other risks to ensure the product aligns with your clients’ financial objectives and risk tolerance. But if you decide to move forward with including annuities in your product set, we’re here to help you succeed.

Whether you have questions about specific annuity products, need assistance with paperwork, or require guidance on how to effectively sell annuities, our dedicated team has your back. With our comprehensive retirement planning solutions, we can help you navigate the key considerations when selling annuities and show you why they should be an essential part of any retirement plan. We offer a wide range of accessible resources, including comprehensive product guides, marketing materials and support.

Ready to learn more? Visit our annuities at Ameritas page to discover how we can help you sell annuities and help your clients achieve their financial goals.

* Guarantees are based on the claims paying ability of the issuing company.

When a client contacts you to set up a meeting, what’s on their mind? For some, it might be a life change that’s prompted them to think about life insurance or estate planning. For others, it’s the conversation to prepare for retirement, or to protect the assets of a new business venture. But how many clients reach out to discuss disability income insurance?

The answer? Not nearly enough.

According to a 2024 Social Security Fact Sheet¹, about one in four of today’s 20 year-olds will become disabled before reaching age 67, and entitled to Social Security disabled worker benefits. More concerning, 65% of the private sector workforce has no long-term disability benefits.

While the need is clear, clients have often proven reluctant to talk about individual disability income insurance, for several reasons:

• Avoidance: Some clients are simply uncomfortable thinking about the possibility of getting ill or injured, or don’t think it will happen to them.
• Confusion: Other clients are confused by the many choices of disability income insurance products and the cost of such insurance. Some mistakenly believe they’re adequately covered by employer-sponsored products or other government programs.
• Prioritization: For many clients, disability income insurance simply isn’t their top concern, opting to focus instead on life insurance, wealth building or asset protection.

The market is beginning to shift, however—and financial professionals looking to fully protect their clients and leverage this dynamic, high-value product are shifting with it.

Why talk about individual disability income insurance?

To see the value of exploring individual disability income insurance, you only need to look to recent headlines. According to a 2024 report by industry researcher IBISWorld², an aging population and awareness of the seriousness of disabilities has fueled industry growth over the last several years, despite the disruption of Covid-19 in 2020. Another study published in September 2023 by reinsurer GenRe³ indicated that total new sales premium in disability income insurance increased by 11% in 2022 over 2021, and total Guaranteed Standard Issue (GSI) new sales premium increased by 24%.

When you switch your perspective from the industry to the level of individual need, the picture draws more sharply into focus. A 2023 survey by PayrollOrg⁴ showed that 78% of Americans would struggle to meet their financial obligations if their paychecks were delayed for a week. Further, according to the Federal Reserve’s Economic Well-Being of U.S. Households in 2022⁵, more than a third of Americans said they couldn’t afford to cover a $400 emergency.

Maybe you’ve already had robust discussions with your clients about growing their wealth and planning for retirement, but what if an unexpected need for funds disrupted those plans? Working with your clients on an asset protection and income continuation plan could help ensure they’re covered even in the event of missed or reduced paychecks.

Given today’s dynamic—and volatile—economy, several factors are making the topic of disability income insurance relevant to your clients:

1. Gig economy growth: With more individuals taking on gig and freelance work in addition to their traditional employment, the idea of portable individual disability income insurance may be particularly attractive.
2. Pandemic aftereffects: The COVID-19 pandemic highlighted the sudden and unpredictable nature of health crises. Many experienced firsthand how quickly illness can impact the ability to work, raising awareness about the need for disability income insurance.
3. Economic uncertainty and rising healthcare costs: Fluctuations in the economy, such as those experienced during the pandemic, can make financial security a higher priority. With rising healthcare costs making the financial impact of a disability even more significant, the prospect of disability insurance can offer real income protection.
4. Greater awareness: Increased efforts to educate the public about the benefits of disability income insurance have led to better awareness and decreased confusion about the product. Plus, newer products targeted to a wider audience are increasing accessibility to this powerful tool.

At Ameritas, our disability income insurance products help provide income protection for the various types of clients you work with. DInamic Cornerstone is common with white collar professionals and executive-level employees. DInamic Fundamental is common with middle income earners and homemakers. Learn more about these products on our website.

How to talk about disability income insurance

If you’re working with an employer considering the value of including the offer of individual disability income insurance for their employees, the advantages are clear. Individual disability insurance can help companies recruit and retain valuable employees without requiring them to bear the burden of compensating a disabled employee. These plans can be employer paid or voluntary, and can be extremely flexible.

For the individual considering purchasing disability income insurance, the conversation is all about emphasizing the value of income protection. Just as your clients would protect their home or auto—or their lifetime’s worth of savings—they want to ensure that they’ve adequately protected their ability to earn.

Specifically, individual disability income insurance offers the following advantages over group long-term disability programs:

1. The possibility of stronger policy provisions.
2. Full portability even if they leave the company.
3. Higher income protection (of particular advantage to highly compensated employees) that can potentially cover total compensation vs. base salary only.
4. A streamlined application and underwriting process.

As an Ameritas financial professional, offering our GSI products provides several advantages to you as well – giving you effective cross-selling opportunities with high earners, a high return on investment for your time and a strong commissions and bonus program. To learn more about our disability income insurance products and sales support, contact us today.

Disability income insurance is issued by Ameritas Life Insurance Corp. and Ameritas Life Insurance Corp. of New York.

A serious illness is one of the few things that can seriously derail a client’s financial aspirations. It can be even more devastating once they retire. But getting them to think about a situation that may never happen can be challenging. It’s difficult to put money towards something they may never need, especially if they have competing priorities.

Fortunately, both life insurance and annuities have riders that can be used to cover the costs associated with a serious illness, and don’t compete with working towards their other financial goals. It’s important to keep in mind that life insurance and annuity riders are not long-term care insurance. Depending on the type of policy, they may differ in purpose, coverage, triggering events and use of funds.

Check out this client-approved article that gives examples of how these concepts work.

Life insurance with the Care4Life Accelerated Death Benefit rider

A common financial goal for clients is to help ensure their loved ones are cared for even if they can’t do it themselves. Life insurance provides this financial protection through the policy’s death benefit. Life insurance can also provide financial protection by offering an accelerated death benefit rider.

Life insurance policies that offer this type of rider supply a practical and convenient way to help meet your clients’ financial needs by giving them part of their policy’s death benefit while they are alive. Most Ameritas life insurance policies feature this type of living benefit. It’s called the Care4Life Accelerated Death Benefit rider. With this feature, your client can use their life insurance while they’re still living.

The Care4Life rider offers several added advantages for your clients.

Easy to explain

The Care4Life qualifying conditions are easy to explain and verify¹:

• Critical illness—invasive life-threatening cancer, stroke, major heart attack, end-stage renal failure, major organ transplant, amyotrophic lateral sclerosis (ALS), blindness due to diabetes, paralysis of two or more limbs, major burns, coma, aplastic anemia, benign brain tumor, aortic aneurysm, heart valve replacement, coronary artery bypass graft surgery.
• Chronic illness—inability to perform two of the six activities of daily living (dressing, toileting, transferring, continence, eating, bathing) or a diagnosis of severe cognitive impairment.
• Terminal illness—a life expectancy of 12 months or less.

Transparent benefit amount

With Care4Life, if your client is diagnosed with a qualifying condition, they will know exactly how much of the death benefit can be accelerated. The amount is based on the qualifying event and the specified amount of their policy. Their life expectancy does not play a role in deciding how much of their policy’s death benefit they can receive.

Qualifying event benefit amount²:

• Critical illness up to 25% of the policy’s specified amount with a maximum of $250,000.
• Chronic illness up to 50% of the policy’s specified amount with a maximum of $1 million.
• Terminal illness up to 75% of the policy’s specified amount with a maximum of $1 million.

The benefit is paid in a lump sum for a critical or terminal illness. Chronic illness payments will be paid in annual payments up to HIPAA limits. If an acceleration of the death benefit is paid, a $250 administrative fee will be deducted otherwise there is no extra cost for the rider to be included on a policy. Fees may vary in some states.

There are no restrictions on how they choose to spend the money they receive as a living benefit from their policy. They are in control and can use the benefit any way they choose.

Impact on life insurance protection

If the accelerated death benefit is taken, the policy will still have value as life insurance. The advanced payment plus an administrative fee plus accrued interest is treated as a lien against death benefit proceeds. In most states, the beneficiaries will receive the death benefit, reduced by the current lien amount. In addition, the policy’s death benefit is guaranteed³ not to fall below 10% of the specified amount when the first acceleration began (not available in New York). Your client must continue to pay the minimum premium to keep the base policy and any riders in force.

Learn more about offering Ameritas life insurance.

Ameritas Income 10 Index Annuity

Saving for retirement is another common financial goal. Your clients want to make sure they don’t run out of money once they retire. That’s where Ameritas Income 10 Index Annuity comes in. It can be an integral part of your clients’ retirement income strategy, not only giving your clients a place to grow and protect their money as they save for retirement, it also provides a foundation for guaranteed income once they retire.

Income 10 provides the potential to earn higher returns with an interest rate that’s linked, in part, to the performance of one or more market indexes.⁴ Your clients won’t lose money due to negative index performance.

In addition, Income 10 features two Guaranteed Lifetime Withdrawal Benefit (GLWB) riders,⁵ available for an added charge, which define how much money they’ll receive from their policy once they retire. Even if their policy value drops to $0, they can depend on this money coming in for the rest of their lives. This is one way to help provide some assurance that they can cover essential expenses such as housing, healthcare and food for as long as they live.

The Income 10 GLWB riders can also help cover the costs of a serious illness during retirement. That’s because, for an added charge, both riders offer a plus option. With the plus option, the amount of guaranteed lifetime income will double if they are unable to perform two of six activities of daily living (bathing, dressing, toileting, transferring, continence and feeding).⁶

Learn more about offering Ameritas Income 10 Index Annuity.

The inclusion of living benefits within both life insurance and annuities offers your clients flexibility to help manage the financial impact of a serious illness. By offering approaches that align with clients’ financial goals and priorities, these living benefits help ensure financial security, regardless of the uncertainties life may present.

Your existing book of business may have hidden opportunities that you’ve so far overlooked. Chances are, you have small business owner clients that may have personal life insurance for some purpose, but don’t know how life insurance can help protect their business as well. As you explore your client’s protection needs, don’t overlook their business needs if they own a business.

Life insurance can help a small business owner:

• Ensure a smooth transition or exit from the business.
• Attract and retain key employees.
• Reduce the cost of owner and executive bonus programs.
• Support retirement and estate planning needs.

Selling to your existing customers could be easier than with new clients since you’ve already established a relationship and built trust.

Life insurance can help protect business

While your business owner clients may have thought about who would run their business in their absence, chances are they don’t have a formal business continuation plan in place in the event of their death. Even if they do have a plan, life insurance likely isn’t a part of it.

Buy-sell agreements

A buy-sell agreement is a contract that defines the terms of how a business will be transferred upon the death of an owner, and makes sense for any business entity, including corporations, partnerships, LLCs and even proprietorships. A buy-sell agreement can ward off infighting by family members, co-owners and spouses and help keep the business intact. Life insurance is prominent in many buy-sell agreements. The agreement doesn’t need to be funded with life insurance, but it may help ensure there’s cash available when the time comes. Your clients could wait and pay cash to fund the buy-sell agreement, thinking they have time to save. But a savings plan accumulates funds over time. What if funds are needed tomorrow? They could borrow the funds, but the death of an owner may make it difficult to receive a loan and the person signing for the loan may have to expose personal assets to receive it. Either way, the purchaser will pay dollar for dollar, plus interest if it’s a loan, for the deceased’s outstanding share of the business.

Ameritas can help by providing a Buy-Sell Review. It goes beyond merely telling you what is currently represented in a client’s buy-sell agreement. The team reviews the plan and determines gaps that can be created by time, changing circumstances or business conditions, and then provide options to fill those gaps.

The benefits of life insurance

Using insurance as a funding vehicle:

• Leverages a limited number of premium payments into a sizeable death benefit.
• Provides immediate availability of proceeds when death occurs.
• Pays a death benefit that is generally income-tax free.

Consider the Executive Bonus Buyout

Asking a small business owner how they want their business to continue once they’re no longer a part of it may cause some anxiety. A key executive is often the most qualified to take over and continue the business. However, they may lack the capital needed to purchase the business. The Executive Bonus Buyout concept helps solve this problem.

Once the business owner and the executive have identified an interest in the executive continuing the business, the executive can raise the funds through an executive bonus. An executive bonus uses permanent life insurance to enable the executive to leverage tax-deferred cash growth, receive income-tax free money in retirement and provide an income-tax free death benefit for beneficiaries.¹ The business pays the bonus through the policy premiums and should be able to deduct these bonus amounts as a reasonable and ordinary expense.² The executive includes any premium payments paid by the business owner as taxable income. The key to the executive bonus concept as it relates to the Executive Bonus Buyout is its structure. In traditional executive bonus plans, the executive is the owner of the life insurance policy and the insured. With an Executive Bonus Buyout, the executive is the owner and beneficiary of the policy while the business owner is the insured.

The Executive Bonus Buyout can also be used to help a key executive purchase the business when the owner retires. It provides the executive flexibility in acquiring funding and can be used in combination with traditional methods. For instance, the life insurance cash value is used by many lending institutions as collateral for obtaining a loan. Cash value through loans and/or withdrawals can be used as a down payment.³

Business continuation planning continues to revolve around a willing seller and buyer coming to an agreement on the value of the business. It eliminates the need for a quick sale that falls below fair market value after an owner’s unexpected death. The Executive Bonus Buyout identifies a willing buyer who is legally obligated to purchase the business and deterred from walking away. It gives the business owner solace in the fact their heirs are protected. As for living buyout options, the Executive Bonus Buyout offers flexibility for the willing buyer to obtain the needed capital to buy the business. Consider the Executive Bonus Buyout when looking to solve business continuation needs in a simple, easy to administer fashion.

Business valuation

Having a business valuation is a crucial first step in assuring the survivability of a business. It lies at the heart of successful business planning. It strengthens the brand’s credibility and values, facilitating a smooth transition to the next generation or assisting with financial matters such as potential sales or business expansion financing.

To produce a complete, objective valuation, the assistance of an independent, accredited firm is needed. Often, this process can be confusing, time-consuming and expensive. This does not need to be the case. Ameritas has a variety of options to help you and your clients through the process.

Family-owned businesses

Few people have more planning issues to deal with than a family business owner. Life insurance can play a part in helping your client make sure their business carries on after they are gone. The death benefit will provide cash to your client’s heirs to:

• Buy the business from the surviving spouse so they are financially secure.
• Pay estate taxes at the parents’ deaths without having to liquidate any business assets.
• Treat family members not involved in the business equitably.

Consider a Family Limited Partnership

Family Limited Partnerships represent a powerful tool for families seeking to optimize their estate planning strategies, protect their assets and facilitate intergenerational wealth transfer. By leveraging the tax advantages, asset protection mechanisms and succession planning opportunities afforded by FLPs, families can effectively preserve their legacy and ensure the long-term prosperity of their entrepreneurial endeavors. However, it is essential to approach the establishment of an FLP with careful consideration, professional guidance and a thorough understanding of the potential benefits and drawbacks. By doing so, families can harness the full potential of FLPs to achieve their financial and legacy planning goals.

Key person loss

Talented employees are one of the most valuable resources for many businesses. Key person insurance helps your clients protect against the financial loss associated with the premature death of key employees.

Life insurance can help attract and retain key employees

To recruit and retain valuable employees, employers often need to offer more than just a basic benefits package. At the same time, employees are looking for ways to protect their family and maintain their standard of living during retirement. Executive bonus plans allow employers to pay a bonus exempt from IRS approval to any employee(s) of their choosing. The bonus can then be used to fund life insurance coverage for the employee and their family.

Non-qualified deferred compensation plans

Nonqualified deferred compensation plans (NQDC) allow employees to set aside a portion of their income with the expectation of receiving a payment or benefits at some point down the road. Life insurance can be appropriate for this strategy because of the death benefit protection it provides—along with the cash value accumulation that can be accessed for future needs.³

NQDC plans are not subject to ERISA’s strict requirements for qualified plans. They are most often used as an incentive to attract and retain key employees, and, with a vesting schedule, these plans can be an excellent employee retention tool. To provide the employee with some certainty that the plan will pay out as promised, employers may choose to informally fund their NQDC plans by purchasing taxable investments or by purchasing life insurance.

Split dollar plans

Split dollar plans have been used since the 1950s to split the costs and benefits of needed permanent life insurance for both owners and key employees. Recent IRS rulings now make plan requirements very clear regarding the taxation and design of these plans. Split dollar agreements can be structured as either loans or as an economic benefit taxed to the executive at term rates.

Life insurance provides advantages to both types of plans:

• Life insurance provides a pre-retirement death benefit to protect the employee’s family.
• At retirement, policy cash values may be used to supplement the employee’s retirement income.³
• Life insurance provides post-retirement death benefits to help maximize and protect the employee’s estate.
• If the policy includes a total disability rider, the policy will provide benefits even if the employee becomes disabled.

Small business owners present a significant opportunity for expanding your business, with many potential avenues for growth often overlooked within your existing client base. By recognizing the diverse needs of small business owners and understanding the role life insurance can play in protecting their business interests, you can provide invaluable support in ensuring a smooth transition, attracting key talent, and planning for retirement and estate needs. For more information about business planning and the resources available, contact Ameritas Advanced Markets at 800-319-6903, option 2.

Those who work as financial professionals deal with clients’ estate planning issues every day. When advising clients, some tend to focus heavily on tax issues—including income, estate and generation-skipping taxes. While tax planning is a big part of estate planning, taxes aren’t necessarily the first question on a client’s mind when beginning the process. This is especially true for those who are starting an estate plan for the first time. Ultimately, the answers to these nontax estate planning questions may have a significant impact on the plan.

Why do I need to prepare a will or trust at all?

At death, the law provides a procedure by which personally owned assets are transferred from the deceased person to someone else. A person may give direction about the designated property with a:

• Will.
• Beneficiary designation.
• Transfer-on-death (or pay-on-death) designation.
• Specific titling.
• Contract.
• Living trust.

Even with so many transfer options available, a will or trust is still necessary for most clients. A person who dies without a will is said to be intestate. Those who die intestate have an estate plan imposed on them by the state in which they lived at the time of their death. Any personally owned asset subject to probate will be governed by the rules of intestate succession.

What is probate, and why should I avoid it?

Probate is the court supervision of the transfer of assets. On its face that seems OK. Where family members don’t get along, the idea of having a probate judge act as referee seems like a good idea.  However, probate has its drawbacks:

• It’s public.
• It’s structured, and it takes time.
• It can be expensive.

While some decedents’ estates would probably benefit from going through probate, most clients making plans will opt to avoid probate if possible. The reason is simple—they want to make it as easy as possible on those who oversee settling things after death.

How can I protect my young children?

Those who are creating an estate plan are usually interested in making contingency plans for their young children. The contingency plan should cover the logistics and financial aspects of caring for the children.  The logistical part of the plan hinges on making the decision about who will raise the children—that is, act as guardian—in the event no parent is available. In most jurisdictions the best place to name a guardian is in the will.

Parents should also make financial plans for minors. If a minor is a direct beneficiary of an estate, guardianship must usually be established—often by a court proceeding—to hold the assets for their benefit until they come of age—usually at age 18 or 21. If money is needed for a child prior to the age of majority, the guardian must ask the court for permission to use the money.  Once children come of age, financial guardianship ends.

How can I protect my special needs relative? 

A special needs trust can give comfort to a family because it provides for the special needs loved one while treating other beneficiaries in a fair manner. Funding the trust with life insurance can ensure that funds will be available whenever needed to carry out the trust’s objective.

Typically, a special needs trust is a trust created to support the supplemental needs (as opposed to primary needs) of the loved one with special needs. The goal is to design the arrangement so that public governmental benefits, for which the individual may be eligible, will pay for the primary needs. If properly designed, the trust can supply only those comforts and special items not otherwise provided by public assistance programs to help make life more pleasant. The distributions from the trust are discretionary to prevent claims that the trust must provide for the primary needs of the special loved one. Some specialists suggest that the trust document name other children or other relatives as beneficiaries also. The trustee is then in a stronger position to argue that he has fiduciary duties to consider the needs of all beneficiaries. Share this case study with your clients to illustrate how a special needs trust works.

How do we arrange our affairs to adequately protect all sides of our blended family?

Blended families can present unique issues in estate planning. Because it can seem so difficult to be fair to all parties, it is easy for couples to ignore important planning to avoid arguments. However, this lack of planning causes enormous headaches for the surviving children. When advising the spouses in blended families, the partners have unique considerations, such as, how should distributions for the benefit of the surviving spouse and children ultimately be made?  The answer will help the estate planning attorney make proper drafting choices when putting together the plan.

This case study outlines the estate problems that could arise with blended families.

What non-death documents should I have in my estate planning package?

During the process of preparing an estate plan, clients should consider making advance directives. Unlike wills, which deal with transfers at death, advance directives are aimed at sickness, death or end-of-life decisions. Advance directives are legal documents that provide instructions for medical care and only go into effect if your client cannot communicate their wishes.

The most common advance directives are:

• A living will specifies what types of medical treatment are desired, which ones to avoid and under which conditions each choice applies. Learn more about preparing a living will.
• Under a health care power of attorney, sometimes called a health care proxy, an individual appoints another person to make health-care decisions if the client is unable to do so. Learn more about choosing a health care proxy.
• Under a financial power of attorney, a client transfers their personal right to make financial decisions to one or more agents. The document typically allows the agent to make deposits, write checks, pay bills and conduct other financial transactions on behalf of the client.

How can I keep peace in the family after I’m gone?

Clients who prepare estate plans are often motivated in part by the idea that writing a plan will help avoid family fights after they are gone. Certainly, having a written plan makes distribution intentions clearer, increasing the possibility of family harmony. In some families, clients are comfortable calling a family meeting to explain their estate planning motives and plan details. Having such a meeting may encourage family members to ask questions, promoting a clearer understanding of the testator’s intent. A family discussion may also reveal weaknesses in a plan and encourage fine-tuning of estate planning documents. However, sometimes a pre-death family meeting could be a recipe for disaster. In other situations, clients may want to keep estate plans private, even from close family members.

An estate planning attorney will sometimes insert a clause in a will or trust that is designed to penalize someone if they act in a certain way. But in reality, there’s no sure way to keep family peace after death—particularly in circumstances where one of the family members feels he or she has been treated unfairly.

Next steps for helping your clients with their nontax estate planning questions

Part of the job of helping with estate planning is to make sure a client’s post-death intentions are realized when the time comes. To that end, our clients expect you to have answers to the nontax estate planning questions outlined here.

Representatives of Ameritas do not provide tax or legal advice. You may want to consult your attorney or other tax professional for more information.