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Originally Posted by defcon
I would assuem the policies were part of a buy sell agreement and if it was entity buy sell it is a tax write off anyways.
Also if he let the old policy lapse while the new one was in underwriting the agent did him a diservice but not advising against and possibily has liability if he instructed to cancel the other policy before approval on the new policy. That is Insurance 101 but not something you see the lesser agents in the biz do.
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Yes, it is a tax write off.
No offense, but I can always tell who the business owners are vs. non-business owners. Non-business owners always bring up tax write offs while prudent business owners ALWAYS look at the bottom line and hate the term "tax write off". Let's face it, employee insurance premiums are a tax write off but how many employers these days are picking up the tab? Bad business debt is a tax write off but how many businesses are happy that customers don't pay? Trust me when I say his partners are not happy that they have to shell out more in premiums for him than for themselves.
As for the lapsed policy, this was one he bought on his own and decided he didn't need it. In hindsight, of course, he wishes he kept it up.