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Assessing needs and plans for farmers

Address your client’s immediate and future needs

Farmers are business owners who may look for help with:

Sun and clouds

Immediate concerns

  1. Growing their business
  2. Preparing for the expected
  3. Preparing for the unexpected
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Future needs

  1. Saving enough for retirement
  2. Maximizing and efficiently transferring the value of their estate
  3. Estate planning between their heirs

Many farmers are concerned with keeping the family farm in the family. But these business owners also need to consider other issues such as retirement, long-term care, estate planning, business continuity and business succession.

BOLD sales support

Contact the Securian Financial Advanced Sales Team today.

1-888-413-7860, option 3

Email the team

Meet the team

Current state assessment

To begin the BOLD process, you need to identify the farmer’s stakeholders and assess their current situation, as well as outline their goals and priorities. From there, you can begin by focusing on their top priority — while gathering more information about their other priorities.

Identify stakeholders

Using the Farmers and Ranchers BOLD questionnaire, engage your farm client about who will design and implement the BOLD strategy, as well as the stakeholders who will be impacted.

What parties are involved?

Just like small business owners, farmers have both business and personal stakeholders:

Farm parties involved buy sell lg

Determine goals and priorities

Farmers must balance family needs and desires with farm operation needs and desires at every life stage of ownership. You should understand your client’s current business and personal life stages. This includes discussing existing strategies within five areas of concern – which are all tied to the operation’s success.

Goal Stakeholders Applicable BOLD strategies

Adequate funding for retirement

Farmer and family

Retirement/stepping back from the operation

Paying for long-term care needs

Farmer and family

Long-term care

Efficiently passing on assets

Farmer and family

Estate planning

Protecting the business from the loss of a key employee

Business, business owner, next generation farmer

Key person protection

Transfer the business to others at a fair price

Business, business owner, next generation farmer

Business succession

Next steps

Once you’ve assessed your client’s needs, craft a recommendation and design a strategy that addresses their concerns and priorities.

Succession strategy

Take BOLD action

Learn how to use BOLD with clients

Your business owner clients need life-stage specific tools. ­We’ll help you find the right solution.

View the step-by-step process

Life insurance products contain fees, such as mortality and expense charges, (which may increase over time) and may contain restrictions, such as surrender periods.

Please keep in mind that the primary reason for purchasing life insurance is the death benefit.

Additional agreements may be available. Agreements may be subject to additional costs and restrictions. Agreements may not be available in all states or may exist under a different name in various states and may not be available in combination with other agreements.

Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender and will reduce both the surrender value and death benefit. Withdrawals may be subject to taxation within the first fifteen years of the contract. Clients should consult their tax advisor when considering taking a policy loan or withdrawal.

The Policy Design chosen may impact the tax status of the policy. If too much premium is paid, the policy could become a modified endowment contract (MEC). Distributions from a MEC may be taxable and if the taxpayer is under the age of 59 ½ may also be subject to an additional 10% penalty tax.    

An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Please consult a tax advisor for specific information. There are charges and expenses associated with annuities, such as surrender charges (deferred sales charges) for early withdrawals.

This information may contain a general discussion of the relevant federal tax laws. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances.

For financial professional use only. Not for use with the public. This material may not be reproduced in any form where it is accessible to the general public.

DOFU 10-2022