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The RIA Advantage

Registered investment advisors (RIA) face challenges integrating life insurance cash values with fee-based asset management.

These challenges include:

  • Lack of technology for fee-based billing of charges
  • Limited discretion over account management to gain potential Advisor ALPHA
  • Complexity of insurance products
  • Transparency of expenses and credits
  • Lack of subject matter expertise to support implementation and services

AgencyONE is proud to offer a WINNING STRATEGY for you to include the TAX ADVANTAGES of accumulation-driven life insurance!

The RIA Advantage platform from CES, a wholly owned subsidiary of Equitable, provides registered investment advisors access to the Life Income PlanSM — a variable universal life insurance policy designed to mitigate the potential income gap left by traditional retirement plans. Its innovative design is simple to understand and implement, creating a winning strategy for both you and your client.

Benefits to the RIA

  • Provides the ability to charge AUM fees on life insurance cash values
  • Implementation designed to meet regulatory requirements
  • Tax-advantaged accumulation and future potential non-reportable tax-free distributions with asset management and reporting transparency
  • Provide asset location for portfolio protection, as well as asset allocation and reallocation
  • Improved projected preformance through compensation reductions and potential Advisor ALPHA through asset management discretion
  • Attract additional AUM while maximizing tax diversification benefits of life insurance

Benefits to the client

  • High early account and cash surrender values1
  • No direct surrender charges1
  • Tax-advantaged accumulation, distributable asset bucket should death occur
  • Lower loads, feeds and expenses to increase opportunities of future asset performance
  • Build a non-reported, distributable income and access asset2
  • Coordinated insurance assets within holistic portfolio management to add potential Advisor ALPHA to retunrs
  1. Life Income Plan – LIPSM uses cash value corporate owned variable universal life insurance that tends to offer significant cash values in the early policy years because of its general lack of surrender charges and because in the event of a full policy surrender within a certain number of years, some policy charges may be refunded. These policies often include a minimum guideline death benefit and are structed to minimize death benefit expense yet retain the integrity of life insurance and the tax-deferral benefits.
  2. Cash values accumulate on a tax-deferred basis and can be structured for tax-advantaged access and distribution assuming policy loans after withdrawals of the policy owner’s basis. Loans and withdrawals reduce the policy’s cash value and death benefit, and withdrawals in excess of the policy’s basis are taxable. Under current rules, loans ar free of income tax as long as the policy remains in effect until the insured’s death at which time the loan will be satisfied from income-tax-free death benefit proceeds, and, if the policy is surrendered, and loan balance will generally be viewed as distributed and taxable.

Sample Resources

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CES offers a robust Demo Site for this product. Please contact AgencyONE to schedule a personal demonstration.

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