Live Insurance News

Senate Report Reveals Tax Loopholes in Special Life Insurance Plans

February 22, 2024February 21, 2024 Angela Linders

In an era when tax strategies of the rich and powerful are under increasing scrutiny, a recent Senate report featured in The Washington Post, has shone a stark light on the life insurance market — not for its widely acknowledged benefits, but for its exploitation as a tax shelter by America’s wealthiest. The traditional purposes of life insurance, including estate planning and providing non-taxable benefits to heirs, are well-understood. Yet, as the Senate Finance Committee revealed, a niche offering known as Private Placement Life Insurance (PPLI) propels these advantages into…

Businesses turn to tax insurance to cover themselves from unfavorable rulings

December 4, 2023December 2, 2023 Nordstrom

Underwriters and brokers are seeing their busiest year ever from companies buying these policies. Governments worldwide have been cracking down on companies that have been avoiding their taxes, and businesses are now buying tax insurance more than ever before in order to protect themselves against a costly dispute or unfavorable ruling. This year has proven to be a record-breaking year for the number of policies purchased for this reason. According to brokers and underwriters, by the close of December, this year will have seen the most tax insurance policies. This…

Small insurance companies facing scrutiny receive IRS deal offer

September 24, 2019September 21, 2019 G. Turner

InsuranceBee and Hiscox launch insurance agent partner program

The goal of the deal is to ensure tax payment plus interest in exchange for dropping the case. The I.R.S. has offered small insurance companies under tax avoidance scrutiny a way to avoid penalties through a new offer. This offer would give the insurers the opportunity to pay all outstanding back taxes – in addition to interest – in order to close their cases and face no further penalties. The Internal Revenue Service is working to help to correct the tax avoidance and prevent it in the future. The small…

More grad students could lose their health insurance coverage

August 27, 2015August 26, 2015 Marc

Grad students from University of Georgia may lose insurance subsidies Grad students at the University of Georgia are expressing concern that they may be losing their access to health insurance subsidies provided by the federal government. Per federal law, all U.S. citizens, including grad students, must have health insurance coverage. For many students, however, the only way to afford coverage is to take advantage of subsidies created through the Affordable Care Act. Grad students from other universities have already lost their subsidies, which has put others on edge when it…

Grad students in Missouri are losing their health insurance subsidies

August 20, 2015August 19, 2015 Marc

Grad students are suffering under some provisions of the Affordable Care Act Grad students from the University of Missouri have lost the health insurance subsidies that they received through the Affordable Care Act. According to the university, grad students are considered by the Internal Revenue Service, which manages federal subsidies for insurance coverage, to be “employees.” As such, many of them are not eligible to receive subsidies from the government. Grad students that have lost access to subsidies may not be able to afford the insurance coverage that they currently…

Penalties are coming for those without health insurance

January 22, 2015January 20, 2015 Nordstrom

Lack of insurance coverage is becoming an expensive problem Those that do not have health insurance may be surprised to find themselves with fines levied against them by the federal government after they file taxes. This year, those filing taxes must inform the Internal Revenue Service of their insurance status. Those without coverage will face a fine, while those with coverage will not. The average fine for those that have not had coverage over the past year will be $95, or 1% of a household income, whichever is greater. The…

Health insurance subsidies hit a roadblock in the US

August 22, 2014August 20, 2014 Logan B.

Some people may be receiving more subsidies than they are due U.S. consumers may be receiving more subsidies from the federal government than they are due to receive under the Affordable Care Act. The federal law offers financial assistance to those that fall within a certain range of poverty, as defined by the government. Subsidies are meant to offset the cost of health insurance policies, making them more affordable and more widely available to consumers throughout the country. Some people may be abusing the availability of these subsidies, however. Some…