Protect Renewals Though A Trust ?

kencan

Expert
27
My renewals from Med Advantage plans are a couple thousand a month. I know of an associate agent who died 2-3 years ago leaving a widow. He had a approx. 400 customers on Medicare Advantage plans.
When he passed away, the MGA immediately moved to contact the agent's customers in order to reassure them that they would continue to get good service. The MGA assured the wife that he would give the wife fair compensation for the "inherited cases". To my knowledge the MGA worked in good faith and paid the widow compensation. Recently, I heard he'd lost contact with the widow a year ago.
How can an agent who is married protect his family in the event of his death so that the renewals will go to his wife or family. Recently, I heard that it was possible to set up a trust so that upon the death of the agent , the renewals would stay in the family.
Does anyone know how such a trust would work? Thank you.
 
My renewals from Med Advantage plans are a couple thousand a month. I know of an associate agent who died 2-3 years ago leaving a widow. He had a approx. 400 customers on Medicare Advantage plans.
When he passed away, the MGA immediately moved to contact the agent's customers in order to reassure them that they would continue to get good service. The MGA assured the wife that he would give the wife fair compensation for the "inherited cases". To my knowledge the MGA worked in good faith and paid the widow compensation. Recently, I heard he'd lost contact with the widow a year ago.
How can an agent who is married protect his family in the event of his death so that the renewals will go to his wife or family. Recently, I heard that it was possible to set up a trust so that upon the death of the agent , the renewals would stay in the family.
Does anyone know how such a trust would work? Thank you.

You probably won't like the answer, but get the wife licensed, make an agency, have carriers pay the agency.

CMS requires the recertification which is likely the messiest part, a trust can't very well take AHIP.
 
So the arguements are due to CMS requirements your better off purchasing LI/CI/DI or combination there of.
 
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