Life Insurance

Smart Money

Presented by Gary Peterson “Smart Money” is money your clients want to control and be able to access in times of need.  What about storing money in life insurance?  The Smart Money Sale gives your clients the following opportunities:
  • Value of permanent death benefit protection
  • Potential to build cash value while preserving access to as much cash value as possible 
Here is information regarding the Smart Money concept. Please review and call me to discuss how we can help you with your year end sales and goals for 2014.

After the lead – How to start the business…

Presented by Brian Leising What do you say when your marketing efforts work?  You got your foot in the door and made it past the gatekeeper.  Do you know what to say when you get in front of a business owner?  Here are a couple tracks to follow.  The first can lead to products that help their business today.  The second will help them continue their business into the future. Helping their business today: “Have you heard about the new types of retirement plans available to business owners?” “What type of plan do you have?” “When was the last time you reviewed your plan?” “Did you know any business can have any type of plan?” Offer a free look (if no current plan) or a free review (if a plan is in place).  You can then utilize factfinders to gather revenue and census information. “Have you heard about the new type of retirement plan available for your key employees?” “What type of plan do they have now?” “When was the last time you reviewed the plan?” Tax laws change from time to time.  An unreviewed plan can do more harm than good.  A business should review their plan periodically to insure tax compliance and to make sure they are getting the best value for their dollars. Helping their business in the future “What’s your exit strategy?” “Who will buy your business?” (while alive, dead?) “What are the tax implications of the sale?” “Will you or your heirs receive a fair price?” “What is your business worth” (most owners mis-value by 60%) “Does your business have more than one owner?  If so, is a buy-sell agreement in place?  How is the agreement funded? How many of your business-owner clients have serious answers to these questions?  They started their business and know how to run it, but how do they get out?  Many business owners have no plan or only a partial plan in place.  Their lack of planning will hurt their immediate family and the employees they leave behind.

Create Your Own Pension Plan

Presented by Jim Guynan An annuity can be a great way to save for retirement on a tax-deferred basis, in effect creating your own personal “pension” plan. As with any investment, however, there are also potential disadvantages that should be evaluated before purchasing an annuity. Advantages:
  • A fixed annuity protects against a decline in asset value during market downturns.
  • Earnings on your annuity premiums are tax deferred so long as they remain in the annuity.
  • An annuity can be used to provide a steady source of retirement income that you cannot outlive.
  • Unlike an IRA or employer-sponsored retirement plan, there are no annual contribution limits to an annuity…you can contribute as much as you want.
  • Subject to the terms of the contract, there is no required date by which you must begin receiving annuity income payments, providing you with the flexibility to defer payments until you need the income.
  • The annuity death benefit passes directly to your beneficiary without probate.
  • In most states, an annuity is free from the claims of a creditor.
  • The growth of a fixed annuity may not keep pace with inflation.
  • Premiums for a non-qualified annuity are not tax deductible, meaning that they are made with after-tax dollars.
  • While you can surrender or make withdrawals from a deferred annuity before you begin receiving income payments, the surrender or withdrawal may be subject to a charge if made within a stated number of years after the annuity is initially purchased.
  • If made prior to age 59-1/2, a surrender or withdrawal will be subject to a 10% federal penalty tax on the gains of the withdrawal unless one of the exceptions to this tax is met.
  • When received, gains are subject to ordinary income tax rates and not the lower capital gains tax rate.
  • Once annuity income payments begin, annuity contracts vary in regard to whether the payment amount can be changed and/or whether amounts can be withdrawn from the contract.
Life Insurance

Waiver of Premium for Unemployment

Presented by John Schraut How am I going to pay my life insurance premium if I lose my job? Have you heard this objection lately?  This may be more common recently due to the economic environment. If your clients have to choose to pay their life insurance premiums or cable bill, which one will they pick? Most times it’s the cable bill. Then what happens – they lose the valuable coverage to protect their family and possible insurability. You, as the agent may get a charge back on the commissions paid. But what if there was an option that would help pay life insurance premiums in the event of unemployment? We have the answer from carriers that offer waiver of premium for unemployment.  Let your clients know about it and take this worry and objection away.