The One Big Beautiful Bill Act unlocks options that can create planning opportunities for your clients using life insurance. After years of watching tax policy evolve and wondering what comes next, we now have a roadmap and a fresh window of opportunity – and life insurance is a big part of that.

Whether you’re guiding business owners, high-income clients, or legacy-minded families, this new legislation can create powerful planning openings. From estate strategies to executive compensation to tax-efficient income planning, here are five ways you can help clients make the most of the latest legislation by using Midland National’s life insurance products.

1. Take advantage of estate planning predictability with the new law

With the $15 million inflation-indexed federal estate and gift tax exemption now codified

Andrew Rinn, JD, CFP, CLU, ChFC AVP Advanced Sales Strategy Sammons Financial Group

into law, help clients act with time-tested strategies.¹ A will is just one piece of the puzzle, and many estate-planning needs still come down to liquidity. A life insurance death benefit can offer cash to retire debt, replace income, bolster retirement funding, equalize inheritances and protect a business. Consider:

• Irrevocable life insurance trusts (ILITs) to provide estate liquidity
• Spousal lifetime access trusts (SLATs) to shift growth out of the estate while preserving access through a spouse
• Intentionally defective grantor trusts (IDGTs) to freeze estate values as the grantor pays the income tax.

Prepare clients for state-level estate and inheritance taxes using life insurance — often with lower exemptions — through domicile reviews, asset titling, lifetime transfers, and liquidity planning.

2. After-tax cash flow options

Pass-through owners are maintaining economic parity with C corporations and now more predictable after tax-cash flow post H.R. 1². With that stability, clients can address previously overlooked business and personal goals. They can also fund supplemental income and executive benefit arrangements, including executive bonus plans, split-dollar arrangements using life insurance and nonqualified deferred compensation (NQDC), as well as trust-based planning through ILITs and SLATs.

3. Tax rules tighten on nonprofit executive pay

With the tax on tax-exempt executive compensation now covering more top employees after H.R. 1³, traditional executive benefit packages face greater scrutiny. Nonprofits can still compete by using split dollar arrangements using life insurance — either loan or endorsement split dollar structures — to redesign executive packages, limit taxable compensation, and help attract top talent.

4. Tax rules adjusted for smaller companies

Small and mid‑sized companies are operating in a more favorable environment after the One Big Beautiful Bill Act⁴, with stronger near‑term cash flow that can be directed to supplemental income plans, executive bonus, split-dollar arrangements using life insurance, nonqualified deferred compensation (NQDC), and funding for buy‑sell agreements.

5. Top federal income tax frozen

For high earners, a 37% top rate and clarified State & Local Taxes (SALT) rules in H.R. 1 create a lower-than-expected tax environment and greater predictability⁵. This opens room for advanced planning approaches such as Roth conversions to shift growth into tax-free accounts and estate-freeze techniques using life insurance to lock in values and move future appreciation out of the estate.

Be the professional your client needs

The One Big Beautiful Bill Act dominated headlines nationwide — and for advisors and agents, it can be a game-changer. Your clients are looking for leadership. Now is the time to help them act with confidence — before these windows close.

If you’d like access to resources and client-friendly tools, reach out to the Midland National Advanced Markets team. We’re here to help you guide your clients forward — today and into the future.

DISCLOSURES

1. 26 U.S. Code § 2020 – U.S. Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2020-title26/html/USCODE-2020-title26-subtitleB-chap11-subchapA-partII-sec2010.htm
2. Senate Amendment to H.R. 1, 199A -- https://www.govinfo.gov/content/pkg/BILLS-119hr1eas/pdf/BILLS-119hr1eas.pdf
3. Senate Amendment to H.R. 1, Section 4960 -- https://www.govinfo.gov/content/pkg/BILLS-119hr1eas/pdf/BILLS-119hr1eas.pdf
4. R. 1, Section 179 -- https://www.congress.gov/bill/119th-congress/house-bill/1/text/enr
5. Senate Amendment to H.R. 1, Section 1(j) and 164(b)(6) -- https://www.govinfo.gov/content/pkg/BILLS-119hr1eas/pdf/BILLS-119hr1eas.pdf

Neither Midland National nor its agents give tax or legal advice. Please advise your customers to consult with and rely on a qualified legal or tax advisor before entering into or paying additional premiums with respect to such arrangements.

Under a split dollar arrangement, the employee enters into an agreement with their employer. Midland National is not a party to this agreement and Midland National’s only obligation is to administer the policy it issues consistent with the policy’s terms and conditions.

As independent financial professionals, it is up to you to choose whether any of the sales concepts contained in these materials might be appropriate for use with your particular sales strategy and clients. Please note that Midland National does not require you to use any of these sales concepts; they are resources that can be used at your option for your own individualized sales presentations if appropriate for the particular client and circumstances.

Sammons Financial® is the marketing name for Sammons® Financial Group, Inc.’s member companies, including Midland National® Life Insurance Company. Annuities and life insurance are issued by, and product guarantees are solely the responsibility of, Midland National Life Insurance Company.

FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES