Publications & Insights

1/29/24

Term Conversion Rights:

Preserving Optionality and Flexibility

Term life insurance policies typically include a provision that allows the coverage to be converted to permanent insurance at the same risk classification as when the term policy was acquired. Because medical underwriting is not required, this conversion privilege may be valuable and provides planning flexibility.

The importance is increased if the client’s health deteriorates and new insurance cannot be acquired or would be cost-prohibitive

10/3/22

Partnership and Transparency:

Partnering with your Family and Advisors to Deliver Alpha

Our clients often have complex financial objectives and business needs.

Having worked with affluent families for more than four decades, the JR KATZ process is rooted in a collaborative approach with the client and their team of advisors. Our sole focus is what is in the best interest of our clients. We do not represent insurance companies; we do not focus on product; and we do not pretend to be something that we are not.

3/1/22

Mitigating Market Volatility with Downside Protection

Buffer Annuities allow clients to secure guaranteed levels of protection against market losses while still providing the potential to capture compelling returns in a rising market environment.

Advisors are increasingly turning to these structures to protect clients from volatility while still providing an opportunity for meaningful growth.

9/2/21

Succession and Legacy Planning for Business Owners

Critical to preserving a family’s legacy may be the implementation of a comprehensive succession plan. Family businesses, businesses with non-related owners and family offices need to address the various contingencies impacting success.

5/15/21

Recent Tax Proposals: Which of the Following Tax Proposals will become Law?

In this high-level overview, we focus on the tax proposals that could significantly impact our clients and their planning.

Estate Taxes: The “For the 99.5% Act” proposes significant changes to the current estate tax regime beginning on 1/1/22.

Step-Up In Basis: Several Democratic Senators have proposed eliminating the step-up in basis for unrealized gains greater than $1M.

Income Taxes and More: The Biden administration has floated proposals which would increase taxes on wages, investments and payroll for those making more than $400k per year.

10/19/20

FAQ - Protection from Market Losses and Market Volatility

In this FAQ, we focus on Buffered Annuities which allow the client to secure guaranteed levels of protection against market losses while still providing the potential the potential to capture compelling returns in a rising market environment.

Given the current low yield fixed income environment, advisors are increasing turning to these structures to protect clients from volatility while still providing an opportunity for meaningful growth.

8/20/20

FAQ - Tax Efficient Investing in a Rising Tax Environment

In this piece, we turn our attention to concerns that future income and estate taxes will increase and how clients can invest in a more tax efficient manner in this environment.

The most powerful force in tax planning is tax-free compounding. A properly structured life insurance policy has four distinct tax advantages:

Potential cash accumulation without a taxable event;
Non-taxable disbursements;
All gains are converted into an income tax-free death benefit; and
If owned by an irrevocable trust, it will be the sole trust asset that will receive a step-up in basis at the grantor/insured’s death

7/15/20

FAQ - Adapt to Changing Circumstances in the Current Interest Rate Environment

The current low interest rate environment makes it imperative for clients to have their life insurance policies reviewed.

Life insurance companies are not immune from the impact of lower bond yields.

The cornerstone of a life insurance advisory practice should be a management process which regularly monitors product performance and responds to changing client circumstances.