...Center News Room Learning Center > Article Library > Flexible Irrevocable Trust Add Flexibility to Irrevocable Life Insurance Trusts By Elizabeth B. Taylor, Director - Estate Market and Barbara A. Bombaci, Director - Advanced Planning Given the present uncertainty about future transfer tax rules, an estate plan should be drafted to provide as much flexibility as possible so it can adapt to changes. To a great degree, estate planning is the art of dealing with uncertainty. When will someone die? What will his or her estate be worth at that time? What will happen in the meantime? How will beneficiaries turn out? Furthermore, the current state of transfer tax legislation adds one more aspect of uncertainty: What will the tax laws be in the future? For most clients, what happens to our transfer tax rules this year or next year is not particularly relevant. Most clients considering their estate plan now are going to live for decades into the future. The transfer tax rules are likely to change multiple times before their estate plan (at least the “at death” portion) is implemented. One response in the face of so much uncertainty is to do nothing – freeze up. Another, better response is to plan, but with as much flexibility as possible in order for an estate plan to adapt to changes in the future. But with planning that is irrevocable – irrevocable life insurance trusts (ILITs) in particular – flexibility seems impossible. Yet this is not so. With a little creativity, much...
Words: 3099 - Pages: 13
...annuity and life insurance policies using the new allocation bases. In addition, calculate the total support costs to be reported by product for each legal entity. • Why would Hampton want to track that information by product even if that level of detail was not required by regulators? • Will the new support cost allocation information help Gibson Insurance establish better pricing guidelines for the various annuities and life insurance products sold by each legal business unite entity? Why or why not? • Is the room for improvement in the means by which the corporate support costs are allocated under Hampton’s new approach? If yes, in what way(s)? If no, why not? 4. Citibank • Why has Citibank introduced a Performance Scorecard? • What is the “business model” underlying the performance scorecard? • What are the strengths and weaknesses of customer satisfaction as a performance measure in this case? In general? • Assume that you are Lisa Johnson. Complete Exhibit 1 to evaluate James’ performance. • Should James get the full bonus? Explain.3. Gibson • Calculate the unit support cost per policy for new and in-force annuity and life insurance policies using the new allocation bases. In addition, calculate the total support costs to be reported by product for each legal entity. • Why would Hampton want to track that information by product even if that level of detail was not required by regulators? • Will the new support cost allocation information help Gibson Insurance establish...
Words: 2521 - Pages: 11
...COLLEGE OF COMMERCE & ECONOMICS G. R. KARE ROAD, MARGAO - GOA INSURANCE SECTOR IN INDIA: THE PARADIGM SHIFT Meenakshi Bawa Lecturer, Department of Economics, M.E.S. College of Arts & Commerce, Zuarinagar, Goa The rapidly growing economic scene, the political attitude, cultural patterns, social values and rapid development in the Information Technology sector have brought about a significant transformation in the lifestyles in the urban and rural areas of our economy. These changes have introduced an element of uncertainty in the possible developments in all sectors; at the same time, the insurance sector also cannot remain untouched. In the present era of globalization, insurance companies face a dynamic global business environment. Radical changes are taking place due to the internationalization of activities, the appearance of new risks, new types of covers to match these new risk situations and innovative ideas on customer service. The low growth rates in developed markets, changing customer needs and the highly uncertain economic conditions in the developing world have been exerting pressure on insurers’ resources while testing their ability to survive. The globalization process has opened up new service markets to provide developing nations with opportunities for the expansion of trade and economic growth. Insurance has always been a politically sensitive subject in India. In fact, until 2000, the insurance industry was a government monopoly. But thereafter it has been...
Words: 3631 - Pages: 15
...information are listed in the benefits resources section of this booklet. If there is a difference between this brochure and what is written in the benefits policies or plan documents, the policies or plan documents will govern. 1 Revised: 9-2012 Health and Insurance Health Care Benefits Eligibility Full-time and part-time (working more than 20 hours) employees are generally eligible for health and insurance benefits. Part-time employees working less than 20 hours are generally not eligible for health and insurance benefits. Coverage under the plans for which you are eligible generally begins on the first day of the month after you have completed one full month of continuous full-time or parttime employment. The month you begin work as a full- or part- time employee does not count as one full month of continuous employment. For example, if you begin work as a full- or part-time employee in the month of May, your benefit coverage generally begins on July 1. For some benefits, coverage may not become effective until your first day of active work on or after the date you become eligible. Medical* *NOTE: The medical plans described are available in 2012. Beginning in 2013, two new types of Health Insurance Plans will be available to all U.S. benefits-eligible employees. The new plans are Consumer Directed Health Plans which are deductible-based. The Comprehensive Traditional...
Words: 5645 - Pages: 23
...A contract of life insurance is one in which one party agrees to pay a given sum upon the happening of a particular event contingent upon the duration of human life , in consideration of the immediate payment of a smaller member sum or certain equivalent periodically payment by another. The origin of the concept of life insurance, as we know it, can be traced to ancient Rome. Caius Marius a military leader created a burial club among his troops, so in the event of the unexpected death of a clubs member, other members would pay for the funeral expense. The history of life insurance dates back to 3000BC. Learned scholars expression “Yagaksheman” found in the Rig Veda refers to a sort of social welfare insurance; the ancient Aryans seem to have developed such a concept. Edwin W Kopt in his treatise origin developed and practices of livestock insurance , credits India with being the mother of insurance practices, and opines that the development started in India and after that spread to ancient Babylon. Insurance began as a way of reducing the risk of traders, as early as 5000 BC in china and 4500 BC in Babylon. Life insurance dates only to ancient Rome; burial clubs covered the cost of member’s funeral expenses and helped survivors monetarily. Modern life insurance started in late 17th century in England, originally as insurance for traders: Merchants, ship owners and underwriters met to discuss deals at Lloyds coffee house, predecessor to the famous Lloyds of London. The first...
Words: 1545 - Pages: 7
...Preface The study attempts to evaluate the performance of the private life insurance companies of Bangladesh, mainly I highlight the delta life insurance company. Insurance is a technical device of risk management. Risk taking is the sixth function of marketing and marketing is an important insurance function. It is a total system of business activities designed to plan, price promote and distribute want satisfying products, services and ideas to target markets in order to achieve organizational objectives. In the United States about 87% of the business is service oriented. In our country about 65% business activities are service oriented. Development of Business depends on the degree of service provided by the companies. Retention of customer depends on the relationship and service of the companies. Customer Relationship management is the widely popular marketing term that has given tremendous impact among the modern customer. Delta Life insurance Co. Ltd. who is deals with insurance business has now turn into service oriented organization to meet the demand of the 21st century as the competition has got momentum. Insurance is one of the important sectors that are playing a vital role in the economic development of the country. An attempt has been made to discuss the whole topics in two distinctive sector- organization related matter and marketing strategy respectively. Insurance industry is one of the strategic sectors in the country Acknowledgement is due to Dr. Afjal Hossain...
Words: 5472 - Pages: 22
...Benefits In our effort to attract, retain and motivate competent employees while providing for recognition of, and reward for, individual ability and performance, CRST International, Inc. has developed and implemented a competitive compensation and benefits package. A summary of compensation structure, company-paid benefits and elective benefits are listed below. Compensation Structure All positions have a designated pay range based on its job grade. All job grades have a wage range that denotes wage minimum, midpoint/market value, and maximum monetary value. Wage ranges are also reviewed from a competitive standpoint by conducting a market analysis of benchmark positions. Non-exempt (hourly) employees are paid weekly while exempt (salaried) employees are paid semi-monthly. Both groups of employees are paid via direct deposit. It is the policy of CRST International, Inc. to grant annual merit increases on the basis of the evaluation of individual performance. Other salary adjustments may be recommended and approved for the purposes of equity, changes in job classification, promotions, etc. Company Paid Benefits Vacation Eligibility is dependent on employee status and period of service to the company. Vacation is earned by completing an anniversary year. For the first through seventh years you are entitled to 10 days, eighth through your thirteenth year you will have 15 days, and on your fourteenth year or more you will receive 20 days of vacation. Personal Time Hourly...
Words: 1772 - Pages: 8
...LIFE INSURANCE IN INDIA : CHALLENGES AND OPPORTUNITIES IN THE POST-LIBERALISED ERA BY Dr. S.C. BANSAL Associate Professor Indian Institute of Management Lucknow (India) e-mail: bansal@iiml.ac.in Ph: 0091 522 2736637 & Dr. Y.P.SINGH Professor, Department of Commerce Delhi School of Economics, University of Delhi New Delhi(India) e-mail: ypsing@rediffmail.com Ph: 0091 951202456948 & Sneh Lohia1 Research Scholar, Department of Commerce Delhi School of Economics, University of Delhi New Delhi(India) e-mail: snehlohia@gmail.com Ph: 0091 011 25219820 1 Corresponding Author ABSTRACT The objective of this paper is to identify the challenges and opportunities in the life insurance sector in India after liberalization of the economy. It fills a research gap: many studies based on secondary data and examining the investment systems, operations, principles and practices of Life Insurance Corporation of India (LICI) have been reported; the works exploring the impact of liberalization on the quality of plans and services offered, and opportunities for growth in this area are limited in number. The data were gathered with the help of a detailed questionnaire from 560 individuals belonging to Delhi, Noida, Gurgaon, Faridabad, Mumbai, Pune, Surat, Kolkota, Chennai, Bangalore, Varanasi, Gorakhpur and other cities in India. It has been observed that the companies have added new features in the life insurance products to meet the...
Words: 5603 - Pages: 23
...[pic] GAUHATI UNIVERSITY A training report submitted in partial fulfillment of the requirements for the award of the degree of the Bachelor of Business Administration (Industry Integrated) 3rd Semester, Gauhati University on “CUSTOMER BEHAVIOUR TOWARDS INSURANCE PRODUCTS” AT METLIFE INDIA VISAKHAPANTAM [pic] Under Organisation Guidance Of: Under Institutional Guidance Of: Mr. K.V.R. Murthi Mr. Hari Krishna Senior Sales Manager Faculty , SITAM Metlife India Prepared And Submitted By: Surya Prakash CERTIFICATE This is to certify that Surya Prakash, a student of the Gauhati University has prepared his Training Report entitled “CUSTOMER BEHAVIOUR TOWARDS INSURANCE PRODUCTS” under my guidance. He has fulfilled all requirements under the regulations of the BBA (IIP) Gauhati University, leading to the BBA (IIP) degree. This work is the result of his own investigation and the project; neither as a whole nor any part of it was submitted to any other University or Educational Institution for any research or diploma. I wish his all success in life. Mrs. Rajani priya Head of the Department, Sun Institute of Technology And Management...
Words: 12655 - Pages: 51
...Recruitment and selection of Insurance Companies PREFACE People are a company’s most important assets. They can make or break the fortunes of a business. In today’s highly competitive business environment placing the right people in the right position is very critical for the success of any organization. The recruitment and selection decision is of prime importance as it is the vehicle for obtaining the best possible person-to-job fit that will, contribute significantly towards the Company's effectiveness. It is also becoming increasingly important, as the Company evolves and changes, that new recruits show a willingness to learn, adaptability and ability to work as part of a team. The Recruitment & Selection procedure ensures that these criteria are addressed In this project I have studied Recruitment and Selection process of ICICI Prudential Life Insurance and attempted to provide some ways so as to make recruitment more effective and to reduce the cost of hiring an employee. I am privileged to be one of the students who got an opportunity to do my training with ICICI Prudential Life Insurance. My involvement in the project has been very challenging and has provided me a platform to leverage my potential in the most constructive way. ICICI Prudential Life insurance is one of India's leading financial institutions offering complete financial solutions that encompass every sphere of life. In a short span of time,ICICI has set an example by having a steady and confident...
Words: 4345 - Pages: 18
...Insurance Ads: Transcending Stereotypes! Are insurance ads truly changing from being purveyors of death and destruction? Once upon a time, Indians were put off by insurance advertising, as gloomy visuals reminded them of the impending demise or accident of their loved ones. Those who did, insured themselves as a ‘savings’ mechanism, which would either help them in their old age or provide for the family in case of their untimely demise. The insurance agents were the perceived Yamdoots and life insurance policies, gloomy prophecies. Cut to 2006 and the insurance scenario in the country is anything but gloomy. Marked by the entry of private players’ post-2000, India’s insurance industry has moved into exciting and thrilling times. From being a state-owned white elephant, the insurance sector in the country now accounts for 10-15% of India’s total financial sector, where over a dozen Life Insurance and Non-Life Insurance Companies are fighting it out to woo the consumer. The opening up of the sector has lured many a foreign players into the market like Sun Life (Canada), Old Mutual (S. Africa), Prudential (UK), New York Life (USA) and others. The carrot of course, is the huge potential that the sector holds: Before 1991, life insurance penetration in India was less than 1%; during the 90s it was between 1-2%, while in 2003-04 (the last available figures), insurance penetration had crossed 2.4%. Apply that to a country of over a billion people and you realise why global...
Words: 1190 - Pages: 5
...A Project Report On Customer Relationship Management in Reliance Life Insurance KOPPAL Submitted in partial fulfillment of the requirements for Award of Master of Business Administration With Specialization In MARKETING Submitted by SUNIL CHOUDARY.K Reg No- MBA/08/48 Under the Guidance of COMPANY GUIDE INSTITUTE GUIDE SANTOSH KUMAR B.R ROHITH C KALASKAR CUSTOMER EXECUTIVE SECRETARY GENERAL HET-IMS HUBLI Indian Institute of Business Management Shivajinagar, Pune – 411 005 Declaration I hereby declare that the project entitled “CUSTOMER RELATIONSHIP MANAGEMENT” undertaken at RELIANCE LIFE INSURANCE COMPANY LTD,KOPPAL submitted in partial fulfillment of the requirement for the award of the degree in Master in Business Administration to the Indian Institute of Business Management, Pune. It is my original work and is not submitted for the award of any other degree or diploma. Place Date SUNIL CHOWDARY.K ACKNOWLEDGEMENT As I look back after the completion of my project I feel it would not have been possible without the guidance. I am very grateful to all the people who have lent their precious time and advice for rendering this project successful...
Words: 16145 - Pages: 65
...Keith and Mr. Lars were business partners for 30 years. 2. Each partner had a life insurance policy on the other partner so that the insurance proceeds could be used to purchase the deceased partner’s interest in partnership from his estate. a. Each partner was allowed veto power over any beneficiary that was chosen or changed on the life insurance policy that was on his own life. 3. Mr. Keith died recently and Mr. Lars received the $500,000 life insurance proceeds. a. Mr. Lars did use the proceeds to purchase Mr. Keith’s interest in their partnership from Mr. Keith’s estate. Issues and Analysis: Did Mr. Keith’s veto right over the beneficiary designation give him “incidents of ownership”? Reg. §20.2042-1 (c)(4) Proceeds of life insurance (being capable of changing the beneficial ownership in the policy gives Mr. Keith “incidents of ownership” based on this Reg. and IRC 2042) Would this require Mr. Keith’s estate to include the insurance proceeds of $500,000 in his gross estate? §2042 Proceeds of life insurance. (If Mr. Keith has incidents of ownership the proceeds will be included in his gross estate) Is there a problem with the life insurance proceeds being used to purchase the deceased individuals interest in the partnership from the deceased’s estate? §2042 Proceeds of life insurance (this would cause the life insurance proceeds to be included in gross estate if life insurance proceeds, even if owned by another individual, are used to benefit the deceased’s...
Words: 787 - Pages: 4
...500) 1,500 1,500 Dental bills — 1,000 Life insurance premium — — Parents’ total support $7,500 $8,500 Of Calvin’s total support of $7,500, the Bakers provide only $3,500 ($2,000 + $1,500), which is not more than 50%. Unfortunately, life insurance premiums are not considered to be an item of support. In Florence’s case, however, the Bakers furnish $4,500 ($2,000 + $1,500 + $1,000) which is more than $4,250 (50% of $8,500). As a qualifying child (under age 19), Darin’s income is immaterial (as long as he is not self-supporting). Since he satisfies the age requirement, his student status does not matter. Andrea is not a qualifying child as she meets neither the age or student tests. She is not a qualifying relative because the support test is not met. The facts do not state what other types of support (e.g., clothing, recreation, medical) the Bakers pay for, but it would have to be significant for the total (including room and board) to exceed $21,000. Morgan could be a qualifying child except that she appears to be self-supporting. Furthermore, she cannot be a qualifying relative due to the support test. As was the case of Andrea, however, the facts do not reflect what other types of support (besides room and board) her parents might provide. It is unlikely that the total would exceed the $20,000 Morgan furnishes herself. b. A dependency exemption for Calvin could have been salvaged if Janet had not paid the life...
Words: 432 - Pages: 2
...INTRODUCTION AND INDIVIDUAL LIFE INSURANCE 3 CHAPTER 2: REGULATION OF THE INSURANCE INDUSTRY 5 CHAPTER 3: INTRODUCTION TO RISK AND INSURANCE 9 CHAPTER 4: MEETING NEEDS FOR LIFE INSURANCE 15 CHAPTER 5: THE INSURANCE POLICY 19 CHARTER 6: PRICING LIFE INSURANCE. 22 CHAPTER 7: TERM LIFE INSURANCE 26 CHAPTER 8: PERMANENT LIFE INSURANCE AND ENDOWMENT INSURANCE 30 CHAPTER 9: SUPPLEMENTARY BENEFITS 37 CHAPTER 10: LIFE INSURANCE POLICY PROVISIONS 44 CHAPTER 11: LIFE INSURANCE BENEFICIARY POLICIES 50 CHAPTER 12: ADDITIONAL OWNERSHIP RIGHTS 52 CHAPTER 13: PAYING LIFE INSURANCE POLICY PROCEEDS. 59 CHAPTER 14: PRINCIPLES OF GROUP INSURANCE POLICY 63 CHAPTER 15: GROUP LIFE INSURANCE. 68 CHAPTER 16: ANNUITIES AND INDIVIDUAL RETIREMENT SAVINGS PLANS 73 CHAPTER 17: GROUP RETIREMENT AND SAVINGS PLAN. 84 CHAPTER 18: MEDICAL EXPENSE COVERAGE 90 CHAPTER 19: DISABILITY INCOME COVERAGE. 94 CHAPTER 20:TRADITIONAL GROUP HEALTH INSURANCE PLANS 98 CHAPTER 21: TRADITIONAL INDIVIDUAL HEALTH INSURANCE POLICIES 104 CHAPTER 22: MANAGED CARE PLANS 109 CHAPTER 23: REGULATION OF HEALTH INSURANCE 113 CHAPTER 1: INTRODUCTION AND INDIVIDUAL LIFE INSURANCE Insurance companies are organized as either • Stock Insurance companies Company has stock that is bought by shareholders. So company is owned by shareholders. These share holders get dividends. No. of companies: 1604 Income from Premium: 226 billion Dollar amount of Life Insurance in force: 9.8 trillion ...
Words: 39952 - Pages: 160
