Cliff’s Notes October 2019
Fire sale! Fire Sale! This product is going away December 31st 2019, so if you have a prospect you’d like to discuss with me, let me know VERY soon!
Fantastic idea here for business owners needing either Buy Sell Coverage or Key Employee Coverage. This MUST be a business case, and cannot work on personal coverage.
Take a 50 year old male business owner or key employee who needs $1,000,000 of coverage to be paid for by the business for business purposes.
He likes the idea of inexpensive Term Insurance, but has a couple of concerns:
· What if I outlive the term period and still need the coverage?
· I pay those term premiums all those years, and at then end, I’m just out all that money.
Whole Life sounds like a great idea but it is SO EXPENSIVE!
What about one of the old Current Assumption Universal Life Policies? No, I am not kidding you.
· Business owners really like having assets on their books, right? Especially building contractors.
o With the Early Cash Value Rider on this product, the Cash Value of this business owned policy is almost identical to his premium outlay, so BOOM, assets on his books!
· Business owners never really know when they are going to retire, nor exactly how long they are going to need the life insurance protection.
o The attached illustration guarantees the coverage to his age 79! This product carriers a 3% GUARANTEED crediting rate. However, if it performs just slightly better, at the current assumed rate of 3.30%, the policy lasts to his age 116.
· That 50 year old is really making hay right now and revenue is flowing, BUT he may hate to make such a large premium commitment down the road.
o I designed this illustration to have annual premiums of $25,000 for the first 5 policy years. Years 6 – 10, we drop it down to $20,000 per year. Then, years 11 – 25 we drop it once again to $15,000. Then, at his age 75, the policy is paid up!
o Now remember, yes, these premiums are higher than term insurance, BUT, the cash value is an ASSET on the corporate books!
Let me know if you have a prospect you would like to discuss.
Go out and make it a great day!