Insurable Interest Canadian Insurance Blog

Social Security advocates were quick to weigh in. “This is the bipartisan solution that most Americans want, even though some on Capitol Hill have proposed to slash benefits by raising the retirement age, means testing, cutting COLAs, or privatizing Social Security,” Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, said in a statement after the signing. “Congratulations to the sponsors and cosponsors of the Social Security Fairness Act for their perseverance in enacting the bill before the end of the 118th Congress,” Richtman added. “Thanks also to President Biden for signing it into law — and for consistently fulfilling his promise to protect Americans’ earned benefits all the way through the end of his presidency. We can only hope that President-elect Trump will keep his promises to do the same.” Biden’s signing of the Social Security Fairness Act “truly is historic,” Richtman continued. “The new law rights a wrong that for the last 50 years has either reduced or eliminated the Social Security benefits of certain government retirees. Nearly 3 million public sector employees and families will now be eligible to collect their full Social Security benefits. These include hard-working public servants like...

Blanchett shows that — as expected — the necessary breakeven returns for the early claiming strategy generally increase for those with longer expected lifespans, since such retirees would receive higher delayed benefits for a longer period of time. “At age 85 the breakeven return averages about 7%,” Blanchett observes. “Note, age 85 is a relatively aggressive longevity planning age (e.g., in a financial plan), where ages 90 or 95 are more common.” By age 90, the necessary breakeven yearly returns all exceed 8%, and by age 95 they are all about 9%. In the annuity scenario, the necessary breakeven returns are lower, landing at about 6% with assumed longevity of 90. While U.S. stocks have had a long-term return that exceeded 8%, actually getting that full return would require a relatively risky portfolio with a significant level of uncertainty compared to Social Security benefits or payouts from guaranteed income annuities. Forecasted stock returns for the next decade are also lower than historical averages, Blanchett warns. What About Married Couples? Blanchett also runs the numbers for a married couple, finding even more of an incentive to delay claiming. “The total benefits received decline upon the death of the first spouse, since...

On Dec. 26, a merits panel of Fifth Circuit Court of Appeals nullified the earlier motions panel’s ruling and reinstated the original injunction. The action was designed to prevent business owners from becoming subject to reporting obligations viewed as burdensome until the court had fully considered the merits of the parties’ arguments. While the order gave little information, the Fifth Circuit’s ruling did state that the Department of Justice’s appeal remains on an expedited track. Oral arguments are scheduled for March 25. BOI Reporting Requirements: Background If the injunction is eventually lifted, beneficial ownership information reporting obligations would apply to nearly all domestic reporting companies. Reporting companies include corporations, LLCs, limited partnerships and any other entity formed by filing a document with a secretary of state in the United States. Reporting companies must identify and provide information about beneficial owners to FinCEN. “Beneficial owners” include natural people who either 1) exercise substantial control over the company or 2) own or control 25% or more of the ownership interests in the company, whether directly or indirectly. When making the determination of whether an individual owns or controls 25% of the business, the individual’s options, convertible instruments and other similar equity rights...

It does not accumulate cash value, making it a straightforward and cost-effective option. For a single person without dependents, the focus is often on providing financial protection in case of premature death rather than on building cash value or leaving an inheritance. It’s essential to review your individual circumstances, consider your financial goals, and assess whether life insurance is necessary for your situation. Consulting with a financial advisor can help you make an informed decision based on your specific needs and goals. Professional Analysis: More Detail, More Information The response from ChatGPT is accurate, but it does not go deep enough to truly be valuable to a client. While term life insurance is a great choice, it’s not the only option for a single person with no dependents. Creating a more in-depth prompt, while leaving out personal information, can help clients get more well-rounded answers to their questions. For example, including general information on household expenses such as a mortgage, groceries, gas, annual income, etc., in the prompt can help the AI curate more specific, accurate advice. If clients present fleshed-out information from ChatGPT, advisors can demonstrate their value by sharing detailed recommendations for preserving financial security. Working together with...