Phantom stock plans offer private companies a powerful tool to attract, retain, and reward key executives without diluting ownership—but designing these plans effectively requires careful structuring. This session explores the different phantom stock and synthetic equity plans, how they work and how each pan can be designed to accomplish the client’s objectives. The session will cover the key aspects of Full Value Unit (FVU) and Stock Appreciation Rights (SAR) plan, how the awards are granted over time and how to analyze the desired financial benefit for the employee(s). It will also cover how life insurance can play a crucial role in funding and managing the liabilities associated with phantom stock arrangements to provide liquidity for future payouts, mitigate financial risk and enhance plan sustainability. Through real-world examples, we will examine how to structure these long-term incentive plans (LTIP), review key tax and accounting considerations and define implementation strategies to help business owners create compelling, LTIPs that align executives with company growth. By the end of this session learners will be able to: Identify the key features and types of phantom stock and synthetic equity plans, including Full Value Unit (FVU) and Stock Appreciation Rights (SAR) plans. Explain how phantom stock awards are granted and structured over time to meet specific client objectives. Analyze the financial benefits and liabilities associated with phantom stock plans from both the company’s and employee’s perspectives. Describe how life insurance can be utilized to fund phantom stock liabilities and improve plan sustainability. Evaluate tax and accounting considerations relevant to phantom stock and synthetic equity plans. Develop implementation strategies to design and execute long-term incentive plans that align executives’ interests with company growth and retention goals.   Read more

The Inforce Certification provides a comprehensive understanding of the key aspects of life insurance policies once they are in force. This certification covers a range of topics related to policy services, technology, billing, changes, loans, and more. Participants will gain knowledge of how to manage policies post-issue, including understanding policy updates, billing processes, and critical policy changes. The course also includes guidance on the use of technology, such as online portals and software products, and addresses specific policy-related actions like reinstatements, conversions, and surrenders. It will also explore the financial implications of policy loans, collateral assignments, and premium financing. This certification is essential for those involved in life insurance policy administration and advisory services. Module Overview: Module 21: Contestability and Claims This module explains the contestability period in life insurance policies, detailing how insurers review claims for misrepresentation or omissions during this period. It also outlines the claims process, including the required information, beneficiary verification, and the typical timeline for claim processing. Learning Objectives Define the contestability period and its purpose in life insurance policies.  Explain how insurers investigate and handle claims within the contestability period.  Identify the key information required to initiate a claim.  Describe the steps in the claims process and the role of the beneficiary.  Understand the typical timeline and methods for claim form distribution.  COURSE CONTRIBUTORS Leah Mahoney – EVP - Operations  Diversified Brokerage Services, Inc. Kim Wilcox – Head of Wealth Management Specialists  Guardian Life Sandra Giordano – Manager, Shared Services Ash Brokerage Cheryl Visconti– Operations Manager Gallagher Alaina R. Winson – Operations Project Manager Diversified Brokerage Services, Inc.   Read more

The Inforce Certification provides a comprehensive understanding of the key aspects of life insurance policies once they are in force. This certification covers a range of topics related to policy services, technology, billing, changes, loans, and more. Participants will gain knowledge of how to manage policies post-issue, including understanding policy updates, billing processes, and critical policy changes. The course also includes guidance on the use of technology, such as online portals and software products, and addresses specific policy-related actions like reinstatements, conversions, and surrenders. It will also explore the financial implications of policy loans, collateral assignments, and premium financing. This certification is essential for those involved in life insurance policy administration and advisory services. Module Overview: Module 20: Tax Forms This module covers Section 7702 of the Internal Revenue Code, which defines requirements for life insurance policies to qualify for favorable tax treatment, including tax-deferred cash value growth and tax-free death benefits. It explains how ownership changes affect this section and defines Interpolated Terminal Reserves (ITR). Additionally, it covers the purpose of IRS Form 712 and when it is required. Learning Objectives Understand the purpose and implications of Section 7702 of the Internal Revenue Code. Identify the criteria a life insurance policy must meet to receive favorable tax treatment. Describe how Section 7702 affects ownership changes. Define Interpolated Terminal Reserves (ITR) and its use. Understand the purpose of IRS Form 712 and when it is required. COURSE CONTRIBUTORS Leah Mahoney – EVP - Operations  Diversified Brokerage Services, Inc. Kim Wilcox – Head of Wealth Management Specialists  Guardian Life Sandra Giordano – Manager, Shared Services Ash Brokerage Cheryl Visconti– Operations Manager Gallagher Alaina R. Winson – Operations Project Manager Diversified Brokerage Services, Inc.   Read more

The Inforce Certification provides a comprehensive understanding of the key aspects of life insurance policies once they are in force. This certification covers a range of topics related to policy services, technology, billing, changes, loans, and more. Participants will gain knowledge of how to manage policies post-issue, including understanding policy updates, billing processes, and critical policy changes. The course also includes guidance on the use of technology, such as online portals and software products, and addresses specific policy-related actions like reinstatements, conversions, and surrenders. It will also explore the financial implications of policy loans, collateral assignments, and premium financing. This certification is essential for those involved in life insurance policy administration and advisory services. Module Overview: Module 19: Annuity Withdrawals  This module outlines the complexities of annuity withdrawals, including fees, tax implications, and contract rules. It’ll discuss surrender charges, penalties, market value adjustments, early withdrawal tax penalties, and withholding options. It also explains the rules for accessing funds based on annuity type and withdrawal provisions or waivers. Learning Objectives Understand the various considerations involved in annuity withdrawals. Explain surrender charges, penalties, and market value adjustments that may apply during withdrawals. Understand the tax implications of annuity withdrawals, including penalties for early withdrawals. Describe the different rules and limitations for accessing funds from various types of annuities. Recognize situations where withdrawal charges may be waived. COURSE CONTRIBUTORS Leah Mahoney – EVP - Operations  Diversified Brokerage Services, Inc. Kim Wilcox – Head of Wealth Management Specialists  Guardian Life Sandra Giordano – Manager, Shared Services Ash Brokerage Cheryl Visconti– Operations Manager Gallagher Alaina R. Winson – Operations Project Manager Diversified Brokerage Services, Inc.   Read more

The Inforce Certification provides a comprehensive understanding of the key aspects of life insurance policies once they are in force. This certification covers a range of topics related to policy services, technology, billing, changes, loans, and more. Participants will gain knowledge of how to manage policies post-issue, including understanding policy updates, billing processes, and critical policy changes. The course also includes guidance on the use of technology, such as online portals and software products, and addresses specific policy-related actions like reinstatements, conversions, and surrenders. It will also explore the financial implications of policy loans, collateral assignments, and premium financing. This certification is essential for those involved in life insurance policy administration and advisory services. Module Overview: Module 18: Premium Financing  This module covers premium financing, where loans are used to pay life insurance premiums, often for high-net-worth individuals or businesses. It explains loan structure, policy ownership, interest rates, repayment options, risks, and estate planning use and monitoring. It also defines a low point letter and details the information it should contain. Learning Objectives Define premium financing and its typical users. Understand the loan structure and policy ownership in premium financing. Explain the repayment options and risks associated with premium financing. Describe how premium financing can be used for estate planning purposes. Recognize the importance of professional guidance when considering premium financing. Understand the importance of monitoring the performance of financed policies and the purpose of a low point letter. Identify the yearly requirements for financed policies. COURSE CONTRIBUTORS Leah Mahoney – EVP - Operations  Diversified Brokerage Services, Inc. Kim Wilcox – Head of Wealth Management Specialists  Guardian Life Sandra Giordano – Manager, Shared Services Ash Brokerage Cheryl Visconti– Operations Manager Gallagher Alaina R. Winson – Operations Project Manager Diversified Brokerage Services, Inc.   Read more

The Inforce Certification provides a comprehensive understanding of the key aspects of life insurance policies once they are in force. This certification covers a range of topics related to policy services, technology, billing, changes, loans, and more. Participants will gain knowledge of how to manage policies post-issue, including understanding policy updates, billing processes, and critical policy changes. The course also includes guidance on the use of technology, such as online portals and software products, and addresses specific policy-related actions like reinstatements, conversions, and surrenders. It will also explore the financial implications of policy loans, collateral assignments, and premium financing. This certification is essential for those involved in life insurance policy administration and advisory services. Module Overview: Module 17: Policy Surrenders This module covers policy surrenders, where a policy owner cancels coverage. It explains the surrender process, cash value returns, tax implications, and handling large loans. It also discusses the process of when a term policies lapse and those implications. Learning Objectives Define policy surrender and its implications. Understand who can request a policy surrender and the process of doing so. Explain how cash value and unused premiums are returned to the owner upon surrender. Recognize the potential tax consequences associated with policy surrenders, especially those involving large loans. Describe how term policies lapse due to non-payment. COURSE CONTRIBUTORS Leah Mahoney – EVP - Operations  Diversified Brokerage Services, Inc. Kim Wilcox – Head of Wealth Management Specialists  Guardian Life Sandra Giordano – Manager, Shared Services Ash Brokerage Cheryl Visconti– Operations Manager Gallagher Alaina R. Winson – Operations Project Manager Diversified Brokerage Services, Inc.   Read more