AIP Marketing Alliance, an Integrity Company, helps independent agencies and agents nationwide sell life insurance and annuity products. That’s been our expertise for more than 40 years. That’s also why AIPMA is starting off this LinkedIn newsletter stating we are not tax professionals or attorneys as we cannot provide legal or tax advice to our downline agents.

However, AIPMA has noticed a lot of insurance carriers focusing on the benefits of estate planning and how to start that conversation with your clients and prospects. Again, our team understands how you cannot guide them about what steps are best for estate planning, but you potentially could open up the conversation about how an estate plan is another piece of the “protection” puzzle that AIPMA has focused on throughout 2025 (and beyond)!

Why should your clients/prospects think about creating an estate plan? According to Prudential’s “Deadlines May Change, But Your Planning Needs Don’t,” the reasons could happen due to the January 1, 2026, deadline of the Tax Cuts and Jobs Act of 2017’s tax benefits for consumers and businesses.

Some other reasons spelled out in Prudential’s flyer:

• Protecting their children (guardian for minor children if something happens to the person)
• Account for all types of family situations (children from previous marriage, spouse not a U.S. citizen, partner who they are not legally married to)
• Allow their business to continue operations – especially for small businesses without a succession plan
• Safeguard a loved one with special needs (create individualized plan to balance government benefits)
• Care for qualified retirement assets remaining at death (beneficiary of assets could pay income tax on the assets)
• Address other tax bills (federal estate, state estate, inheritance tax)

One of the potential pieces of an estate plan could involve purchasing life insurance. Most of these policies pay income tax-free death benefits to beneficiaries, and in turn, this money could fund a number of expenses, taxes, fund a trust, or even keep business continuity.

According to a recent Ameritas blog, you also can share some of the reasons (or uses) of life insurance in estate planning. Their 10 uses include estate tax, income replacement, creditor protection, avoiding probate, second marriages, estate equalization, tax and retirement, charitable gifting, protecting their legacy and charitable giving power, and funding special needs trusts.

“Estate planning is not just for the wealthy. It’s for everyone who wants to ensure their loved ones are taken care of and their wishes are respected,” the Ameritas article states. “Life insurance is a versatile tool that can address various needs in estate planning, from covering estate taxes and replacing income to protecting assets from creditors and avoiding probate.”

While you may not be licensed to create an estate plan for your clients and prospects, you can leverage some of AIPMA’s contracted carriers on how they can get started with the proper licensed professionals.

What is an estate plan? Per Ameritas, the definition of an estate plan is a plan designed to manage and distribute your client’s assets, wealth, and responsibilities after they are unable to manage them. An estate plan doesn’t only account for their wishes upon their death, it also serves as a plan to honor their wishes if they become disabled or incapacitated. The basic components of an estate plan typically include a living trust, a will, financial power of attorney and a medical directive.

This Ameritas article goes into detail about some of the common questions including:

• Why does your client need to prepare a will or trust at all?
• What is a living trust, power of attorney, and medical directive?
• Fiduciaries: How to pick them?
• What does your client need to know about estate taxes?

What should be on an estate planning checklist? Per this North American article, here are seven items that your clients or prospects should consider including on a checklist to finalize an estate plan or get a new one started.

• Take inventory of assets (collectibles, vehicles, housing, bank accounts, CDs, retirement accounts)
• Assign a power or attorney (grant someone authority to manage finances and make decisions on client’s behalf)
• Finalize will and trusts (client should know the differences between each)
• Name beneficiaries (could help bypass probate and save time gaining access to funds)
• Appoint a guardian (named person to act as guardian if client is incapacitated)
• Include a letter of intent (outlines personal and final wishes in detail)
• Connect with experts

AIP Marketing Alliance agrees with that last North American bullet point – have your client/prospect discuss their estate planning wishes with an attorney or estate tax professional to ensure the proper documents are in order and assist in completing the process.

As for the other potential parts of an estate plan, you can contact AIPMA’s Business Development team to discuss some options (annuities, life insurance, long-term care insurance, etc.) to start the conversation with clients and prospects. Call them at (800) 783-5206 Press #2 or [email protected]. They also can provide additional carrier materials and products based on your current carrier appointments/contracting.

For more than 40 years, AIP Marketing Alliance (AIPMA), an Integrity Company, serves as a premier life insurance and annuity distribution partner to provide full-service support to independent wholesalers, brokerages and agents from our Troy, Michigan office. NOT AFFILIATED WITH OR ENDORSED BY THE GOVERNMENT OR THE MEDICARE PROGRAM.

AIP Marketing Alliance is committed to STRIVE in ’25 as we support our independent insurance wholesalers and agents. Visit our blog on aipma.com to stay informed on these upcoming launches and learn why wholesalers nationwide choose AIPMA as their distributor for selling life insurance, annuities, long-term care insurance, final expense, and much more. Ask about our lead services, myAIP CRM platform with customizable recruiter portal, and online tools/resources designed to grow your business. The difference is personal.

AIP Marketing Alliance, an Integrity Company, has developed this electronic communication for informational and educational use only. Be advised, AIP Marketing Alliance, Inc., does not provide legal advice, tax advice, or guidance on issues involving securities laws, insurance laws nor securities or insurance regulations. This material should not be relied on as providing any such advice or guidance to either agents or retail consumers. Within this communication, AIPMA shares links for usage as information only. This content should not be interpreted as solicitation to purchase life insurance, annuities, or other products or as advice designed to meet your clients’ specific needs. Content involving fiduciary, tax, or legal advice should be directed to your legal, tax, and financial professionals for specific advice or product recommendations. AIPMA will not accept any legal liability resulting from any use of 3rd party material(s).