July 2021 - SRS Inc

Care About, Not Care For: Why Long-Term Care Belongs in Every Financial Plan

September 25, 2026July 29, 2021 by Tim Fuller

Adult daughter and her aging mother sharing a warm moment while discussing long-term care planning

Most financial plans assume a long, healthy retirement. The longer clients live, the more likely they’ll need care, and a few years of it can undo decades of saving.

Key takeaways

Longer life expectancy means a greater likelihood of needing long-term care.
Just a few years of care can threaten a lifetime of savings.
Planning lets family members care about their loved one, rather than having to care for them.

Long-term care planning lets families care about each other, instead of having to care for each other.

The financial risk

It can take decades to build a retirement nest egg and only a few years of care to drain it. At 2025 national medians, a private nursing home room costs about $129,600 a year. See current cost of care.

The family risk

Anyone who has been a caregiver knows the physical and emotional toll. Caring for a loved one is an act of love, but placing that burden on a spouse or children is something most clients want to avoid.

What a plan accomplishes

Protects retirement assets
Reduces the caregiving burden on family
Lets clients receive care where they prefer, including at home
Lets loved ones spend time together as family, not as caregiver and patient

To start, see eight ways to ease into the talk.

Frequently asked questions

Why is long-term care planning important?

Care costs can drain retirement savings, and without a plan, family members often become unpaid caregivers.

Does living longer increase the chance of needing long-term care?

Yes. The longer people live, the more likely they are to need help with daily activities.

What does long-term care insurance protect?

Retirement assets, family relationships, and the ability to choose where and how care is received.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

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Affordable Income Protection for Middle-Income Clients

September 25, 2026July 28, 2021 by Tim Fuller

Professional working confidently at her desk, representing disability income protection

Income protection isn’t only for executives, doctors, and attorneys earning six figures. Middle-income workers depend on their paychecks just as much, and often have less cushion if those paychecks stop.

Key takeaways

Middle-income households are often more vulnerable to lost income because they have less savings.
Many life, health, and P&C agents never discuss income protection with their clients.
Affordable plans exist for many occupations, including some part-time professionals such as hygienists and nurses.

Your clients want income protection. Most are simply waiting for someone they trust to bring it up.

Why middle-income clients need it

Everyday working families rely entirely on their income for housing, food, and bills. A disability can drain limited savings within weeks. Their need is at least as urgent as a high earner’s.

An overlooked opportunity

Many life, health, and property-casualty agents never raise income protection. Simply offering it differentiates you and adds real value for clients who have never been asked.

Plans that fit tight budgets

Carriers offer affordable individual plans for many occupations, including clerical workers and some part-time professionals such as dental hygienists and registered nurses working as little as 24 hours a week. In earlier quotes, a $2,500 monthly benefit for a 35-year-old dental hygienist or 45-year-old office clerk cost under $50 a month; current rates vary, so request a quote. Budget-friendly designs like the M.U.G. plan help too.

Start the conversation

Ask every client and prospect whether they have a plan if they get sick or hurt. For talking points, see sell the need before the solution.

Frequently asked questions

Do middle-income workers need disability insurance?

Yes. They often have less savings to fall back on, making lost income especially damaging.

Can part-time workers get disability insurance?

Some carriers offer coverage to part-time professionals, such as nurses and hygienists working about 24 or more hours a week.

How much does a basic disability policy cost?

It varies by age and occupation, but modest benefits for lower-risk occupations can cost less than $50 a month.

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Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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State Estate and Inheritance Taxes: The Gap the Federal $15M Exemption Doesn’t Cover

September 26, 2026July 27, 2021 by Tim Fuller

With the federal estate tax exemption now $15 million per person, many clients assume estate tax is no longer their problem. But a number of states impose their own estate or inheritance taxes, often with much lower thresholds. For clients in those states, life insurance still plays an important role in estate liquidity.

Key takeaways

The federal exemption is $15 million per person ($30 million for couples) under the One Big Beautiful Bill Act, but state taxes are separate.
Some states levy an estate tax with exemptions far below the federal level, and a few levy inheritance taxes on what heirs receive.
A large life insurance policy can itself push a client’s estate over a state threshold if it isn’t owned properly.

A client can owe nothing to the IRS and still leave heirs a sizable state estate or inheritance tax bill.

The federal picture: $15 million and permanent

The One Big Beautiful Bill Act, signed in July 2025, set the federal estate and gift tax exemption at $15 million per person ($30 million for married couples) starting in 2026, with no sunset and inflation indexing after 2026. The top federal rate remains 40%. For most clients, federal estate tax is no longer a concern. See our article on the $15 million exemption for details.

That doesn’t mean estate planning is finished. Clients should still be reassured, with clear explanations, about where they stand, and some clients face state-level taxes the federal change didn’t touch.

State estate taxes vs. inheritance taxes

State estate taxes are charged on the estate itself before assets pass to heirs. A number of states and the District of Columbia have one, and some exemptions are far lower than the federal amount, in some states as low as $1 million.

Inheritance taxes are charged on what a beneficiary receives, and the rate often depends on the heir’s relationship to the deceased. Spouses are usually exempt and children often are, while siblings, nieces, nephews and friends may pay more. At least one state has both an estate tax and an inheritance tax.

State rules and thresholds change regularly, so always confirm current law for the client’s state of residence and any state where they own real estate.

How life insurance can create or solve the problem

Life insurance can push a client into a state estate tax without anyone noticing. Consider a 35-year-old who buys a $3 million term policy to replace a $100,000 income over 30 working years. If that policy is owned personally, the death benefit counts in the estate and could exceed a low state exemption.

The fix is usually ownership. An irrevocable life insurance trust can keep proceeds out of the taxable estate while still providing liquidity to pay any state tax that remains. Our article on estate tax liquidity covers how coverage fills that need.

Questions to ask clients

Which state do you live in, and do you own property in any other state?
Who owns your existing life insurance policies?
Would your heirs include anyone other than a spouse or children?
Have you reviewed your plan since the 2025 federal changes?

Frequently asked questions

Which states have an estate or inheritance tax?

A number of states and the District of Columbia impose an estate tax, and a handful impose an inheritance tax. The list and thresholds change, so confirm current law for the client’s state.

Does the $15 million federal exemption apply to state estate taxes?

No. State estate taxes have their own exemptions, and some are much lower than the federal amount.

Can life insurance proceeds be subject to state estate tax?

Yes, if the insured owns the policy at death the proceeds are generally included in the estate. Trust ownership can help keep them out.

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Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Executive Underwriting: Life Insurance With No Exam Using an Executive Physical

September 25, 2026July 23, 2021 by Tim Fuller

Busy executives don’t want to schedule a paramedical exam, and many have already had a more thorough one. Some carriers will use a recent executive physical in place of insurance exams and labs.

Key takeaways

An executive physical completed in the past 18 months may replace the paramed exam and labs.
One program offers up to $20 million of indexed or variable UL, including survivorship, for ages 25–65.
Clients need at least $200,000 in annual income and an executive, professional, or white-collar occupation.

Up to $20 million of permanent coverage — no paramed exam, no insurance labs — using an executive physical from the past 18 months.

What an executive physical is

Many executives and professionals get an annual executive physical: a comprehensive health review with full lab panels and cardiovascular testing. These are done by a personal physician or through formal programs at major health systems such as Mayo Clinic or Cleveland Clinic.

Program guidelines

Ages 25–65
Up to $20 million of coverage
Indexed UL and variable UL, including survivorship (both spouses need an eligible physical in the past 18 months)
Preferred and Standard classes
Executive, professional, or white-collar occupations with at least $200,000 in annual income

What the physical must include

Medical records are still required and must show a physical meeting minimum criteria: height, weight, blood pressure, and pulse; a medical history review; full blood and urine panels; and cardiovascular testing.

Why it helps the sale

Removing the exam removes one of the biggest reasons high-net-worth clients delay or drop out of the process. Contact our Underwriting Team to confirm eligibility and current program details before you quote.

Frequently asked questions

Can an executive physical replace a life insurance exam?

With some carriers, yes. A comprehensive executive physical from the past 18 months may be used instead of a paramed exam and labs.

How much coverage is available without an exam through executive underwriting?

One program offers up to $20 million of indexed or variable universal life for ages 25–65.

Who qualifies for executive underwriting?

Typically executives, professionals, and white-collar workers earning at least $200,000 a year who have had a qualifying physical within 18 months.

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Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Myth: Long-Term Care Insurance Only Pays for Nursing Homes

September 25, 2026July 22, 2021 by Tim Fuller

Long-term care insurance was originally designed to pay for nursing homes, and many clients still think that’s all it does. Today’s policies cover a much wider range of care, and most of it is designed to help people stay at home.

Key takeaways

Modern long-term care policies can cover home health care, assisted living, adult day care, and facility care.
Many policies also include care coordination, home modifications, and caregiver training.
Helping clients stay at home is often the most compelling benefit to discuss.

His policy paid for ramps and grab bars, a home health nurse, and training for his wife — so he could stay home.

What modern LTC policies can cover

Home health care and homemaker services
Assisted living and memory care
Adult day care
Nursing home care
Care coordination services
Home modifications such as ramps and grab bars (policy-dependent)
Caregiver training for family members (policy-dependent)

Benefits vary by policy, so review the specific contract with each client.

A real example

Joe had cared for both of his parents for years, so he bought long-term care insurance to spare his family the same burden. Later in life he developed advanced diabetes, which led to blindness and a leg amputation. His policy paid for home renovations, including ramps and grab bars. A care coordinator helped Joe and his wife understand the care he needed and referred local providers. His wife received caregiver training, and a home health nurse visited during the day while she was at work. Joe stayed in his home with the care he needed.

Why this matters in the sale

Most clients say they want to stay at home if they need care. Showing them that a policy is built to make that possible reframes long-term care insurance from “nursing home insurance” to a plan for independence. Start with eight ways to ease into the conversation.

Frequently asked questions

Does long-term care insurance cover care at home?

Yes. Most modern policies cover home health care, and many also cover care coordination, home modifications, and caregiver training.

What does long-term care insurance pay for?

Depending on the policy: home care, assisted living, memory care, adult day care, and nursing home care, plus related services.

Can family members be paid as caregivers under an LTC policy?

Some policies allow it, especially those with a cash benefit or specific family caregiver provisions. Check the individual contract.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Selling Disability Insurance to Young Professionals

September 25, 2026July 21, 2021 by Tim Fuller

Young professionals are one of the most underserved disability markets. They have decades of earning potential, often carry student loans, and change jobs frequently. That makes portable, individual income protection especially valuable.

Key takeaways

Young professionals change jobs often, so portable individual coverage that follows them is a strong selling point.
Many are cautious with money and carry student debt, which makes income protection a practical, not theoretical, need.
Premiums at younger ages can be modest, often comparable to a phone bill or gym membership.

Group coverage stays with the job. Individual coverage stays with them, through every job change.

Why this market is ready

Many young professionals started careers in uncertain economies and carry student loans. They tend to be mindful of risk and money, and they have a lifetime of earnings ahead, which is exactly what disability insurance protects.

6 sales and marketing tips

Emphasize portability. Individual coverage moves with them from job to job and city to city.
Ask existing clients about their adult children. Parents are trusted sources of referrals.
Be present online. Use social media and short videos to explain income protection.
Volunteer locally. Young professionals value community involvement.
Lead with affordability. Compare premiums to a phone bill or gym membership.
Be the trusted advisor. Many want coverage but prefer to buy from someone they know rather than online.

Where to find them

Employers known for flexible schedules and community involvement
Young professional groups, including nonprofit networks
Chamber of commerce young professional committees
Graduate programs for professions such as engineering, architecture, pharmacy, and law

For why timing matters, see why now is the best time to buy. Ask us about brochures designed for younger clients.

Frequently asked questions

Should young professionals buy disability insurance?

Yes. They have the most future earnings to protect, and premiums are lowest at younger ages.

Is individual disability insurance portable?

Yes. It stays in force when the insured changes jobs, unlike most group coverage.

How much does disability insurance cost for a young professional?

Often modest; for many younger clients in professional occupations, comparable to a monthly phone or gym bill.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Trusts in a Nutshell: Key Trust Types Every Insurance Advisor Should Know

September 26, 2026July 20, 2021 by Tim Fuller

Trusts show up in almost every advanced life insurance case. You don’t need to be an attorney to work with them, but you do need to know the basic types and what each one does. Here’s a plain-English glossary.

Key takeaways

A revocable trust avoids probate but offers no tax benefits or creditor protection.
An irrevocable trust, including an ILIT, can remove assets from the taxable estate and protect them from the creator’s creditors.
SLATs and dynasty trusts let families keep access to or pass wealth across generations without estate inclusion.

Trusts were in use long before wills, and they remain one of the most important tools in estate planning.

The basics of a trust

A trust is created when a person (the creator, maker or grantor) puts legal title to property in the name of a trustee, who holds and manages it for the benefit of others (the beneficiaries) according to the trust document.

An inter vivos trust is created during the creator’s life.
A testamentary trust is created by the creator’s will after death.

Revocable vs. irrevocable trusts

Revocable trust: The creator can change or revoke it at any time and add or withdraw property at will. It keeps property out of probate, but provides no tax advantages and no protection from the creator’s creditors.

Irrevocable trust: Property is removed from the creator’s control. In exchange, it is generally kept out of the creator’s taxable estate and protected from the creator’s creditors.

ILIT (irrevocable life insurance trust): An irrevocable trust set up primarily to own life insurance, though it can usually hold other assets too. Choosing the trustee is an important decision; see our article on choosing an ILIT trustee.

Advanced trust types

Grantor (intentionally defective) trust: An irrevocable trust where income taxes flow back to the creator, while the assets stay outside the creator’s taxable estate. Most irrevocable trusts are grantor trusts. Our article on grantor trusts explains why that matters.

SLAT (spousal lifetime access trust): An irrevocable trust that gives the creator’s spouse a lifetime interest, with the remainder usually going to children. The spouse can have generous access during life, but what’s left isn’t included in the spouse’s taxable estate.

Dynasty (generation-skipping) trust: Each generation of beneficiaries has only a lifetime interest, which passes to the next generation at death. Because each interest ends at death, the assets are not included in any beneficiary’s taxable estate.

Why this matters for your cases

Knowing these terms helps you spot planning opportunities and talk comfortably with a client’s attorney. Even with the federal exemption at $15 million per person, trusts remain valuable for probate avoidance, creditor protection, control and state estate taxes. Contact us with questions on any trust-owned case.

Frequently asked questions

What’s the difference between a revocable and an irrevocable trust?

A revocable trust can be changed at any time and avoids probate but offers no tax or creditor benefits. An irrevocable trust generally can’t be changed but can remove assets from the taxable estate and protect them from creditors.

What is an ILIT?

An irrevocable life insurance trust is set up mainly to own life insurance so the death benefit stays out of the insured’s taxable estate.

What is a SLAT?

A spousal lifetime access trust is an irrevocable trust that lets the creator’s spouse benefit during life, with the remainder passing to other beneficiaries outside the spouse’s estate.

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Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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4 Ways Long-Term Care Insurance Can Provide Tax Advantages

September 25, 2026July 15, 2021 by Tim Fuller

Tax benefits may not be the first thing you mention about long-term care insurance, but they should be in your top five. For hesitant clients and business owners, they can tip the decision.

Key takeaways

Premiums for tax-qualified LTC policies can count as medical expenses, up to IRS age-based limits.
Self-employed clients can often deduct premiums up to those limits; C-corporations can generally deduct premiums paid for employees in full.
Many states offer their own deduction or credit, and HSA funds can pay qualified premiums up to the age-based limits.

A C-corporation can generally deduct 100% of long-term care premiums it pays for employees and their spouses.

1. Individuals: medical expense deduction

Premiums for tax-qualified long-term care policies count as medical expenses, up to an age-based “eligible premium” limit the IRS sets each year. Clients who itemize can include them with other medical expenses above the income threshold. Clients can also pay qualified premiums from a health savings account, up to the same limits.

2. Self-employed clients

Self-employed clients can generally deduct qualified premiums, up to the age-based limits, as part of the self-employed health insurance deduction, without needing to itemize.

3. Business owners

When a C-corporation buys tax-qualified policies for employees and their spouses or dependents, it can generally deduct the full premium as a business expense, and the benefit isn’t taxable income to the employee. That makes LTC a strong executive benefit. See controlled executive bonus with LTC benefits.

4. State incentives

Many states offer a deduction or credit for LTC premiums. Rules and amounts vary by state and change over time, so check your client’s state. Existing policyholders often don’t know about these benefits, which makes the annual review a good time to mention them.

Frequently asked questions

Are long-term care insurance premiums tax deductible?

Premiums for tax-qualified policies can be deductible as medical expenses up to IRS age-based limits, and business owners may have additional deductions.

Can I use my HSA to pay long-term care premiums?

Yes, for tax-qualified policies, up to the IRS age-based eligible premium limits.

Can a business deduct long-term care insurance premiums?

A C-corporation can generally deduct 100% of premiums paid for employees. Other business types have different rules, so confirm with a tax advisor.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Three Questions That Lead to the Disability Insurance Sale

September 25, 2026July 14, 2021 by Tim Fuller

Hard-sell tactics and worst-case stories tend to push clients away from disability insurance. A quieter approach works better: ask three questions and let clients see the gap themselves.

Key takeaways

Question 1: Do you have an income protection plan if you got sick or hurt and couldn’t work?
Question 2: How long could you pay your monthly bills if you couldn’t work?
Question 3: Where would the money come from after that?

“How long could your savings, retirement accounts, and credit cards carry you? Three months? Six? And then what?”

1. Do you have an income protection plan?

Most clients will say no. Those who say yes usually mean a group plan at work, and most can’t tell you what it would pay. Suggest they request the benefit summary from HR. A typical group plan replaces 60% of earnings, often taxable and capped, which can leave them with around 43% of pay after taxes. A small individual policy can bring them back to 65–70%. See the 58% pay cut.

2. How long could you pay your bills?

Ask how long savings, retirement accounts, and credit cards would last. Three months? Six? A year? This paints the picture without scare tactics.

3. Where would the money come from after that?

Then wait. Let the client think it through. When they’re ready, let them know you have an affordable plan and ask if they’d like to learn more. Some will say yes right away; others will come back when they’re ready, and they’ll come back to you.

Before you ask

These questions work best after you’ve established what the client values most. See sell the need before the solution.

Frequently asked questions

How do I start a disability insurance conversation?

Ask whether they have a plan if they couldn’t work, how long they could cover their bills, and where the money would come from after that.

What percentage of income does group disability replace after taxes?

A 60% taxable group benefit can leave roughly 43% of pay after taxes, depending on the client’s tax bracket.

How much individual disability coverage should clients add to group coverage?

Enough to bring total replacement to roughly 65–80% of income, depending on carrier limits.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Naming a Minor as Life Insurance Beneficiary: Using a UTMA Designation

September 26, 2026July 13, 2021 by Tim Fuller

Minors can’t legally own a life insurance policy or take possession of a death benefit. If a child is named directly, a court may have to appoint a guardian, adding delay and expense. For many families, a Uniform Transfers to Minors Act (UTMA) designation is the simplest solution.

Key takeaways

Minors can’t legally receive life insurance proceeds, so a child should never be named outright.
A UTMA designation names a custodian to manage proceeds for the child and works like a simple trust.
At the age of majority the child receives everything outright, so a formal trust may be better for larger amounts.

The beneficiary designation is the most important part of a life insurance policy, yet the application gives it the least space.

How a UTMA designation works

A UTMA designation is created in the beneficiary designation itself. It works like a “poor person’s trust” when a formal trust is too costly or complicated. A custodian is appointed to manage the policy proceeds for the child according to the directives in the state’s UTMA.

Details to get right

Name a successor custodian. The custodian may die before the child reaches adulthood.
Follow state law. The wording must comply with the governing state’s UTMA, and the age of majority differs by state.
Check with the carrier. Confirm the wording with the carrier’s claims department.
One designation per child. Each minor beneficiary needs a full, separate designation.
Plan for contingent minors. Contingent beneficiaries who are minors need the same care.

A UTMA designation almost always needs a separate page attached to the application.

The main limitation: control ends at majority

When the child reaches the age of majority, the custodian must turn over the proceeds outright. Unlike a trust, a UTMA can’t delay control well into adulthood. For larger amounts, or when parents want distributions staged over time, a formal trust is usually better. See our guide to trust types for options.

Make beneficiary reviews part of your service

Births, deaths, divorces and remarriages all change who should be named and how. Reviewing designations regularly, especially when children are involved, protects the family and builds trust with your clients. Contact us with questions or for help with a case involving minors.

Frequently asked questions

Can I name my minor child as life insurance beneficiary?

You can, but a minor can’t legally receive the proceeds. A court may need to appoint a guardian. A UTMA custodian designation or a trust avoids that.

What happens when the child reaches adulthood under UTMA?

The custodian must turn the remaining proceeds over to the child outright at the age of majority set by state law.

Is a UTMA or a trust better for a minor beneficiary?

UTMA is simple and inexpensive. A trust costs more but allows the parents to control how and when money is distributed, which is often better for larger amounts.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Care About, Not Care For: Why Long-Term Care Belongs in Every Financial Plan

The financial risk

The family risk

What a plan accomplishes

Frequently asked questions

Tim Fuller

We’re Here to Help

Why middle-income clients need it

An overlooked opportunity

Plans that fit tight budgets

Start the conversation

Frequently asked questions

Tim Fuller

We’re Here to Help

Tim Fuller

We’re Here to Help

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller