- Family History
- Different types of nicotine use
- Marijuana use
- Long Term Care Riders
- Driving History
- All carriers are required for their permanent life insurance products to be CSO / PBR compliant by January 1, 2020. What this means in layman’s terms is that permanent life insurance products will see an upward pricing adjustment at that time. The timeline is tight. If your clients are searching for permanent life insurance at today’s pricing, the applications must be in, underwritten and placed inforce, NO LATER THAN 12/31/2019. That means applications need to be in very soon, in order to meet this deadline. See attached Intelligent Spreadsheet for full details with each carrier.
- The fantastic Lincoln MoneyGuard product, which is an asset based Long Term care product, is also facing an approximate 7% price increase at the end of the year, so new apps must be in no later than October 31, 2019 and placed inforce by 12/31/2019.
- Business cases, such as Buy Sell, Key Employee, Non-Qualified Deferred Comp, etc. are the most profitable pieces of business you can write. Most employers enjoy the fact that these premiums can be paid with corporate checks and especially during year end time. Well, that time is upon us. It is so very hard to commit business owners to apply for coverage and especially pay premiums for it at the beginning of a new year. If you have any business owned cases that you’re working on, now’s the time to approach the business owner about moving forward.
Go out and make it a great day!
Due to increasing health concerns and FDA Warnings surrounding the use of e-cigarettes/”vaping”, Prudential has decided to change their policy to no longer classify users of these products as non smokers and will be underwriting them as tobacco users on applications dated 10/21/2019 and beyond. Vaping clients who have been quoted non-tobacco rates should submit applications ASAP.
We now offer an Indexed Universal Life product that, if the S&P 500 does not perform as the policy owner expects, offers a 100% return of premium option after the 20th policy year- contractually guaranteed!
This is an actual case an ISG Advisor just did and I wanted to share the Sweet Spot we found, in order for him to not only land this great case, but to almost double his commissions too!
There is a very narrow window in which this works, but I’m sure many of you know someone that this will appeal to. The market is for healthy males between the ages of 67 and 70, looking for 15 – 20 years of life insurance coverage.
The competition was quoting 20 year term on this guy, so we had to get creative for our ISG Advisor. Sure, we could have quoted the same old 20 year term and looked like everyone else, but we took it a step further.
I went and met with the customer and the ISG advisor, to learn a little more about what his goals were for his life insurance. Turns out to be a $25,000,000 life insurance need, and his concern was mainly for the next 15 – 20 years. I mentioned to him, and he firmly agreed, that things do tend to change in the future and it’s best to be prepared for those changes. He informed me that he didn’t want to spend over $400,000 in life insurance premiums, and he would like it, if the plan we recommended had “options”, should his needs change in the future.
We structured a S&P Indexed Universal Life plan for him, and assumed a 5.6% crediting rate on the contract. The best 20 year term in the market had an annual premium of $353,065. So, I plugged that same premium into the IUL plan and it guaranteed his coverage for 18 years, and under current assumptions, it went for 22 years. Good plan, but we wanted it to be a GREAT plan.
Remember, he gave us a budget of $400,000 or less and he wanted options. We plugged in $375,000 of annual premium and the IUL contract was guaranteed for 20 years and projected to last for 24! In addition, if his needs changed and he no longer needed the coverage, policy years 15 – 20 he had around $2,400,000 of surrender values, wherein he could surrender the contract and recoup some of the premiums he had paid in. Or, if his needs changed, and he needed the coverage longer for 24 years, he simply had to continue paying premiums in order to keep the coverage going! You can’t do that with term insurance on a 67 year old!
Now, here’s the best part for the advisor on this case. If he’d sold the 20 year term, he’d make commissions on $353,065 first year, and no renewals.
On this IUL plan, the TARGET premium was $695,500! This particular company has 24 month rolling targets. What that means is that the advisor makes first year commission on the $375,000 being paid in this year, AND when the client pays his premium next year, he gets first year commissions AGAIN on $320,500! Then, he also get renewal commissions thereafter!
That’s what I call a Win / Win for everyone!
Call the ISG Sales Team if you have a prospect that may fit this scenario or if you have questions about it.
Go out and make it a Great Day!
P. L. A. N.
Prepared Like A Ninja
- Commit to putting $1,000 / month into a PLAN from now until you reach age 65, then you’re done! Paid up, sit back and relax.
- If, by chance, you pass away between now and age 65, let’s assume age 60, your PLAN will pay your beneficiaries $1,000,000 tax free. So, you’ve contributed $240,000 to the plan at this point, and it pays out $1,000,000! That’s pretty good, huh?
- It gets even better! What if at any time in your life, this plan would take care of you if you got sick and needed care, to the tune of up to $10,000 / month. That would provide a lot of Home Care, nice nursing home, Alzheimer’s facility…..whatever you needed to receive the kind of care you need and expect.
- It just keeps going, and getting even better! So, you don’t die, you don’t get sick and you decide it’s time to quit working and retire…..but that old 401K didn’t perform like you thought it would, and on top of that, you have to pay income taxes on the income when you do pull it out. Never fear! Your PLAN, will pay you $50,000 / year, tax free from your age 65 all the way out to your age 95! Let me remind you – you’ve paid $12,000 / year for 25 years, so that’s $300,000 in contributions. If you choose to take the $50,000 beginning at your age 65 and you continue to take it till you turn 95, do the math. That’s $1,500,000 TAX FREE!
The Love Letter
As excited as I am about all of the opportunities for both you and me in our industry for 2018, I have to reflect back sadly to 2017. At this point in time, I want to talk to you more about 2017, than 2018.
On November 2nd, my father in law passed away. He meant the world to my wife, Pamela, and was a fantastic grandfather to my two boys, Noah and Kiefer.
8 days later, on November 10th, I lost my mother. There are no words to describe the loss of a parent, especially one that was as dear to me as she was.
On November 20th, I turned 50 years old. Not that turning 50 was that difficult, but it was the first birthday I’ve spent, without my Mom by my side.
The very next day, on November 21st, I lost a great friend of almost 25 years, who also happened to be an ISG advisor. Actually, one of the first advisors I recruited to do business with me back in 1992.
I never expected to have such a year of loss, much less all in one month and I never want to go through that again. I also hope that none of you have to experience that much grief in such a short period of time.
I want to focus just on my Mom for the purpose of this version of Cliff’s Notes.
My Mom was a single Mom who raised two boys on her own. She was an educator in a small private school, making less than $15,000 per year. We grew up in a nice home, we were well fed and well provided for and loved beyond measure. She never missed a game, school play, or anything that my brother and I were involved in. She often worked a second job during the summers to make ends meet.
My brother and I were co-executors of her Will. He was best at handling logistics and the emotional side of things, and I handled the financial aspects.
My mother made very sure that my brother and I were educated, graduated college, made “acceptable” grades and ultimately found careers of our own. She always told us how very proud of us that she was.
It’s not that what I’m about to tell you was necessary, or needed or certainly not expected.
My Mom left my brother and I a “Love Letter”. That letter was in the form of a Whole Life Insurance policy that she had taken out in 1989 and had paid premiums on ever since that time. In reviewing that policy, she never missed a payment, never made a late payment and made sure that she could leave those proceeds to me and my brother as her last gift to us. I don’t see how she was financially able to do it, so I have determined that it was her love for us, that made sure that policy stayed in force until the day she died.
Being in this industry for 30 years, I’ve heard every objection known to mankind on why someone does not pull the trigger and purchase life insurance. I’m not judging those individuals, nor am I saying they don’t love their families. But the next time I hear the objection, “I just can’t afford it”, you better believe me when I tell you, I just don’t fall for that.
As you think about your love for your own families and as you work with clients who are planning for their families, please take just a second to think – Life Insurance is not always about the money left behind. It’s more often the love in that person’s heart, that wanted to leave one last Love Letter behind.
Go out and make it a great day!
As we near the end of Long Term Care awareness month, I’d like to throw out some thoughts on why this is so very important and what you need to be talking to your clients and prospects about.
Traditional Long Term Care insurance used to be the only means of protection against the astronomical costs of receiving care. Over time, the “bells and whistles” on these traditional products got whittled away, and the premiums went up and up and up.
Why? Primarily because insurance companies had no idea how many claims would be processed.
What does that tell you? It tells me that this type protection is highly utilized and with the aging Baby Boomers, it will be even more so. That tells me that there is a huge opportunity out there for me and for you to EDUCATE the buying public on what options are out there today, and which one best fits their specific needs.
I compare the old traditional Long Term Care insurance policies to Homeowners Insurance. We all have it, in hopes that we never have to use it. And, if we don’t ever use it, no one but the insurance company benefits from all of the premiums paid into it over the years. That is because there is no Return of Premium if you cancel the policy, there is no death benefit if you die before using the Long Term Care benefits and you can’t “short pay” the premiums. You must pay the premiums on traditional Long Term Care insurance, until the day you die, or you just can no longer afford it. Who wants to be paying insurance premiums after they retire? Not me.
There are solutions!! The new products available today, DO offer solutions to all of the above negative aspects of Traditional Long Term Care insurance.
- Do you want to structure your plan to have premiums guaranteed paid up in 1 year, age 65, age 72, whatever? Yes, we can do that!
- Do you want a death benefit available to your beneficiary, should you never use the policy for its Long Term Care benefits? Yes, we can do that!
- Do you want an escape route, just in case things change in the future and you no longer want or need the Long Term Care protection? And would you like to have all of your premiums refunded to you, in this event? Yes, we can do that!
Don’t get me wrong, Traditional Long Term Care insurance does still have its place, especially in the older age market over about age 65.
I have personally seen the detrimental effects of both the person needing care, and the caregiver at home providing it, when there is no money to pay for someone else to care for a loved one. My step father battled Alzheimer’s for over 7 years, and it took a huge toll on my mother’s health. My father has had numerous strokes and if it were not for my step mother, I have no idea what we’d do to provide for the quality of care that he needs.
ISG has the tools that you need in order to get in front of your clients and prospects to educate them on this ever-growing need for protection. We have created our own tools, specifically the “3 Unique ways to Protect against the Costs of Long Term Care” piece. It is highly educational for both advisors and their clients and has opened many doors for many sales.
The buying public WANTS to have Long Term Care protection, they just simply don’t understand it. Be the hero and go talk to your clients about this. The Holiday Season is the ideal time to do so, as everyone has their family and the well-being of their family on their minds during this time of year.
Go out and make it a great day!