Annuities

Are Income Riders Always the Best Approach?

Presented by David Corwin In my opinion, Income Riders are not always the best approach.  I will agree that they do give the client some satisfaction in knowing how much their income would be.  However, the power in the knowing I don’t think mitigates the fees, coupled with the outrageously long surrender periods that are sold most of the time.  What happens in most cases is that the agent presents only one product and doesn’t look at the different options that would lessen the surrender period, thus giving the client more choices at some point and not locking them up for 16 years or longer. It’s an absolute certainty that if you show more than one option you will make more sales and the client will be more satisfied with their decision.  Now, I will admit that it might be a slower sales process, but shoving a product down their throat doesn’t do them any favors either. Here’s an example of what I’m talking about.  I ran a top carrier product with the highest bonus and rollup rate on a 50 year old male with $100,000 and let it cook for 10 years before I started income and came up with $9,845.59 in annual income.  A green to red apple comparison with the same income rollup without a bonus would only reduce the income in 10 years to $8,950.54.  That’s less than $900 and the kicker would be that the surrender period is reduced by 6 years. It is also widely known that an indexed annuity without a bonus performance should, and in most cases, does outperform bonus indexed annuities.  With that in mind, the client will undoubtedly have more money in the long run anyway.  All I’m really talking about is choices.  Give your client choices and they will make the right one the majority of the time, and you will have a more satisfied client.
Bulletins

Lincoln Benefit – Ultra Plus UL Closing to Term…

Lincoln Benefit Life’s Ultra Plus UL will no longer be available for term conversions after June 28, 2015. Key Dates and Transition Rules Please take note of the following transition rules and important dates: * All Ultra Plus UL term conversion applications in good order dated on or before June 28, 2015 and received on or before July 10, 2015 will be issued. * All Ultra Plus UL term conversion applications dated on or before June 28, 2015 and received after July 10, 2015 will be returned. A new application and required paperwork will need to be submitted for an alternate product. Following the closure of Ultra Plus UL, the remaining Lincoln Benefit Life products available for term conversions include:1 * Ultra Index * Total Accumulator VUL * Whole Life II If you have any questions, please contact Lincoln Benefit Life at (800) 525-9287. 1Product availability is subject to change. All products may not be offered in all states.
Long Term Care and Disability Insurance

Emphasizing Disability Income Awareness is more than just One…

Presented by Leonard Berthelsen May is designated as Disability Income Awareness month and much of the focus is given to presenting, selling and educating clients during the month.  Let’s take that sharp focus from May and extend it throughout the year. Your client’s need for protection is there throughout the year, not just in a one month ad campaign.  Sickness and accidents aren’t just confined to one month but are present all year long. Disability Income protection should be at the forefront of every discussion with our clients to talk about their exposure and how you can reduce the risk.  Why, because all the other “stuff” that we talk about, sell or convince a client to buy becomes secondary if they can’t afford to continue paying the premiums when they become disabled. We write many times in these blogs about theory and process but rarely about how the personal side of things affects our loved ones.  Let me share a quick story with you about one of those personal issues. A 37 year old man was having lunch with his 3 year old daughter at her daycare when he became flushed and dizzy.  Making it through the lunch he returned to his car with the air conditioner on to cool off.  A passer-by tapped on his car window to see if he was okay, he had passed out. This 37 year old man had just suffered a stroke.  The quick and smart thinking of a passer-by probably saved his life.  In intensive care, he was informed that most likely he had a small clot that entered his brain.  With medication and some intense physical and occupational therapy, he will gain full control of his arm once again.  Who would be concerned of this happening at this age?  We never know when, where or why, but disabilities happen all the time to all kinds of people. Having the right protection can and will make all the difference in the world.  Just make sure that your clients are protected. Oh, by the way, this 37 year old man is my son.  Yes, he did have Disability Income Protection!