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2017 tax changes affecting life insurance: client email templates

As you are aware, tax changes affecting life insurance policies will come into effect on January 1, 2017.

As we approach this date, it’s important to consider the impact these tax changes will have for clients who have, or who are interested in purchasing; permanent life insurance products and we encourage you to reach out to these clients. To help you prepare for these discussions, we’ve created client email templates which identify some of things your clients should consider both from a business or personal perspectives.

Visit our 2017 tax changes page, to access information and resources to help you prepare your business and your clients.

Client email templates

Subject: How the new tax legislation will impact your business

Dear (client name),

Effective January 1, 2017, tax changes will come into effect that could have a financial impact on your business. There are steps you can take now, before the legislation comes into effect, to minimize any negative impact and even take advantage of possible benefits. Any changes you wish to make must be completed prior to December 31, 2016 and to this end, I would be happy to arrange a time to meet with you to discuss your options.

Some things to consider before the new legislation includes:

  • Ensuring you the maximum room possible to put additional funds into your universal life insurance plan on a tax-deferred basis
  • Moving more of the life insurance death benefit, tax-free, through your company’s Capital Dividend Account to your estate beneficiaries.

These and other options for taking advantage of the current tax legislation are open to you now but will no longer be available after December 31, 2016.

I will call you within the next week to set up a time when we can meet.

(advisor name)

Subject: How new tax legislation may impact you and your life insurance

Dear (client name),

I’m writing to let you know about some tax changes that will come into effect on January 1, 2017. These changes may impact your life insurance policy and prescribed annuities by:

  • Providing for less funding room and potential higher costs for universal (UL) life insurance policies
  • Requiring higher taxes be paid on prescribed annuities

If you act now, before the new tax legislation comes into effect, there are opportunities you can take advantage of that will have a positive effect on your financial plans.

I would like to suggest that we sit down together and review your options so that you can make any changes you wish to do prior to the December 31st, 2016 deadline.

I will call you within the next week to set up a time when we can meet.

(advisor name)