Search
Schedule your free
Exploratory phone call

Click here to see how we
can be of assistance.

Click Here
Blog
Video Library
Join our newsletter
In The Press
Client Login
Youtube Channel
CONNECT WITH US BY CLICKING THE SOCIAL MEDIA ICONS.
VISIT OUR PODCASTS:
Shah Plan-it Google Podcast Neel's Live
Archives
Categories
Recent Posts
Important IRS Update: Significant Interest Penalty Increase for Tax Underpayments

The Internal Revenue Service (IRS) has recently announced a critical change that could significantly impact taxpayers who underpay their taxes. This update is particularly relevant as we approach the next tax filing season. Previously, the IRS charged a 3% interest penalty on estimated tax underpayments. However, this rate has now been increased to a substantial

Read More

See more
Will Inflation Hurt Stock Returns? Not Necessarily

Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks. A look at equity performance in the past three decades does not show any reliable connection between periods of high (or low) inflation and US stock returns. Since 1993, one-year returns on

Read More

See more
Maximize Your Charitable Impact with These Four Strategies

As the year draws to a close, it’s a perfect opportunity to rethink how you give to charity. This is important for managing how much tax you pay and how much help reaches those in need. Here are four effective strategies: Need Guidance? Reach Out to Us! These strategies are just a starting point. There

Read More

See more

How Marijuana Use Affects Life Insurance Policies: A Comprehensive Guide

Categories
Category: Insurance Uncategorized

The topic of marijuana use and its impact on life insurance policies has been increasingly debated in recent years. As marijuana becomes more accepted for medicinal and recreational uses in many states, understanding how it interacts with your life insurance policy becomes even more critical. In this blog post, we’ll break down how life insurance companies view marijuana use during the underwriting process. For a more technical look at the subject, feel free to explore the original article on WealthManagement.com.

The Underwriting Process

When you apply for a life insurance policy, the insurance company goes through a process called “underwriting” to determine your risk level. In simpler terms, they’re figuring out how likely it is that you might pass away sooner than expected. They take into account various factors like your age, health conditions, and lifestyle habits, including the use of substances like tobacco and marijuana.

The Role of Marijuana

The use of marijuana can play a significant role in how insurance companies assess your risk. While some companies adopt a lenient approach, others might categorize you as a smoker, which can lead to higher premiums. The frequency of your marijuana use, the purpose (medical or recreational), and the method of consumption (smoking, edibles, etc.) are also factors that insurers consider.

Policy Rates and Categories

Your marijuana use can place you in different categories that affect your premium rates:

  1. Preferred Best: Rarely will marijuana users fit into this category, which is generally reserved for the most health-conscious individuals.
  2. Standard: Occasional marijuana users with no other health issues may fall under this category.
  3. Smoker: Some insurance companies will label you as a smoker if you use marijuana, leading to higher premiums.

Medicinal Marijuana Users

If you’re using marijuana for medicinal purposes, insurers may focus more on the underlying medical condition rather than the marijuana use itself. However, this could still influence your premium rates, depending on the severity of your condition.

The Importance of Honesty

Always be truthful when filling out your insurance application. Misrepresenting your marijuana use can lead to a denial of claim, which means your beneficiaries won’t receive the death benefit if something happens to you.

Understanding how marijuana use impacts life insurance underwriting can be complicated. If you have concerns or need further clarification, don’t hesitate to reach out to us at Shah Total Planning. Our experienced advisors can guide you through the intricate details of life insurance underwriting, ensuring you get the best policy tailored to your needs.

Contact Shah Total Planning today for personalized guidance on securing the most suitable life insurance policy for you and your loved ones.

For more information, please visit our website.

Disclaimer: The information provided in this blog is for educational purposes only and should not be considered as financial or legal advice. Consult with a qualified advisor for tailored advice.

Life Insurance Still Matters as Part of Your Estate Plan

Categories
Category: Insurance

Don’t make the mistake of assuming that life insurance is an entirely separate asset outside of your estate plan. Many people set up their life insurance policy early on in their working years and use it to think about income and mortgage payment replacements during this time. However, as your needs evolve, your life insurance policy may need to evolve as well. You may need an additional policy or you may trade in an old life term insurance policy for a universal life policy.

A full review of your estate plan should be conducted on a regular basis in order to evaluate where your life insurance policy simply is not performing the way that it needs to, to be in line with your estate planning goals. The ‘set it and forget it’ mentality often associated with a life insurance policy puts individuals at risk of making mistakes. A client might be under the impression that life insurance is totally outside of their other assets and may fail to appropriately account for this asset in the estate plan, missing opportunities to provide for your beneficiaries. If you have an underperforming or old policy that has higher administrative costs or yields lower interest rates than a current policy, there’s a good chance that you need a fresh look. Furthermore, you might get benefits from using an irrevocable life insurance trust and you should always take a look as we get closer to the end of the year, whether or not you have nonexistent or outdated beneficiary designations.

Some of the most common mistakes in this area include naming a former spouse, a deceased individual, omitting children who were born after the policy was issued, or naming a minor grandchild or child. Reach out to an experienced estate planning attorney today to talk about setting up a consultation to ensure that your life insurance is in line with the rest of your estate planning goals.

                                                                                                                            

What Role Does Life Insurance Play in Your New Jersey Estate Planning?

Categories
Category: ILITs Insurance

If you do not have significant assets but already have a life insurance policy in order to help provide income protection if you were to suddenly pass away, you may be curious about additional ways to fund an inheritance for your children or grandchildren. Leaving behind an inheritance for your loved ones is certainly a worthy goal and it can factor into the overall estate planning for you and your spouse. Life insurance can help to close the gap if you believe that you may need to access some of your own assets in order to support your retirement. You might even establish an irrevocable life insurance trust. estate planning NJ

The first step to take in this process is to inventory all of the assets you have and to determine with your financial planning advisor and your New Jersey estate planning attorney, what portion of those assets need to be allocated towards supporting you in retirement. From this point on you may determine that additional funds inside retirement or investment accounts could be passed on to your loved ones.

You may also decide, however, that additional life insurance is a good way to support and leave behind a legacy for your loved ones. You would need to decide what kind of insurance is most appropriate in this situation. The most affordable type of life insurance is known as term life because it can be obtained relatively inexpensively and provide protection for you and loved ones, if something were to happen to you over a specific period of time. You can speak with your New Jersey estate planning attorney to learn more about how life insurance may fit into the scope of your long-term estate planning needs.

 

Do you feel lucky? What is a Quick Draw Buy-Sell Agreement?

Categories
Category: Finances Income Tax Planning Inheritance Taxes Insurance Life Insurance Small Business Owner Taxes

Many business owners have a buy-sell arrangement set up for the future. It’s helpful to draw out these directions in advance, especially when there is the potential that future owners or part-owners might get gridlocked with one another. In these situations, buy-sell directions can help disputing parties move forward.

Do you feel lucky What is a Quick Draw Buy-Sell Agreement

It’s possible that you’ve already heard about a shotgun buy-sell arrangement, but a quick draw agreement is a bit different. Under a shotgun, the offering individual stipulates a price. The offerree then has the option to buy those shares or to sell their own shares to the offeror. The exact timing isn’t a major issue in this situation, since the offeree retains the option to either buy or sell. In some ways, this can even be seen as a disincentive to pull the trigger.

All that changes under a quick draw arrangement. Under a quick draw, either side can provide a notice to purchase the other’s shares at a price that is determined through an appraisal process. This can happen after a contractually defined “trigger event”, but the timing of the trigger pull is essential in quick draw. Simply put, timing is everything.

Under quick draw, buyer and seller designation is determined simply by who submits their notice to purchase the other’s shares first. A difference of even just minutes can determine who gets to buy and who gets to sell. This complex process was recently held up in Mintz v Pazer, in which the judge supported this out of the box buy-sell arrangement.

If you’d like to learn more about your buy-sell options and put a plan for the future in motion today, reach out to us at 732-521-9455 or email us at info@lawesq.net

Some Strategies To Shield Your Money

Categories
Category: Asset Protection Asset Protection Planning Inheritance Insurance Lawsuits Trusts

If you wish to protect your money or assets or are about to receive a sudden windfall such as an inheritance, you may want to consider a number of strategies to protect yourself from lawsuits. Simple reason: “The Deep Pockets Theory”; the people with the money are the people who are sued.

judge hand with gavel
(Photo credit: SalFalko)

Here are a few strategies, according to an article in the Chicago Tribune:

    1)  Increase your liability insurance. If you are about to inherit $3 million, call your broker and increase your liability policy to protect that additional $3 million. Do it before you get the money. Rates are inexpensive.

    2)  Consider separating assets. You may not want your spouse to have access to your new windfall. If you put the money in a joint account, that is what will happen.

    3)  Protect yourself from renters. If you have rental property or are going to get rental  property, put the property into a business entity such as an LLC to shield your assets from a disgruntled tenant. That way, they can sue the entity for what it has, but cannot go after you and what you have.

    4)  Create a trust and/or business entity to shield your assets. If you do part-time work you probably are operating as a sole proprietorship. But all of your assets are at risk if you are sued.

    5)  Be careful with partnerships. If you have an informal partnership, you are responsible for the actions of your partner. Form an LLC or other entity to provide legal protection.

Enhanced by Zemanta