Life Insurance

Level Term Rates with Up-To Lifetime Coverage

Presented by Jim Linn We receive several calls a day requesting quotes on clients that are 60+ years old.  Typically the agent is requesting the maximum term length for the least amount of premium.  In working with someone 60+ years of age, at best, the longest time frame of term insurance available is 20 years, taking them to age 80 or 90.  A new study on mortality showed that the average mortality today is approximately 87, meaning their plan would fail them 7 years too early if they elected a 20 year plan.  Several carriers now offer Guaranteed Universal Life (GUL) products that allow you to specify a time frame, such as coverage to age 90, 95, 100 or up through age 120.  These products are death-benefit driven and are not interest-rate based, allowing for a true guaranteed premium.  Also, depending on the state and product, most include an Accelerated Death Benefit feature for Terminal Illness, Chronic Illness or Critical illness, another added benefit of the product.  How do GUL’s compare against similar term options?   Male age 70 Coverage Amount: $100K Standard Non-Tobacco risk class  20 Year Term Monthly Premium:  $290 GUL to age 90 Monthly Premium: $253  That is a 15% premium difference for the same face amount and duration of coverage.  Plus the Accelerated Death Benefit features are included. Contact your life marketer at 800-397-9999 for more details!
Long Term Care and Disability Insurance

Are Your Clients Prepared For Long Term Care?

Presented by Leonard Berthelsen It has been reported in many articles and news features that Americans are just not prepared for the issue of long term care in the later cycle of their life. Are you? Are your clients? By most accounts most of us fall into the unprepared category. Baby boomers have heard for 10 + years that it is coming, and it could happen to them. Did they prepare? Well let’s look at some of the data that may surprise you. Most baby boomers have done a poor job of saving for their eventual retirement. (34% of surveyed baby boomers felt they had saved enough to comfortably retire). In another survey it was revealed that 57% of those reaching age 65 would continue to work in order to live their achieved lifestyle. Not by choice, but by necessity. The American Association for Long Term Care reports that although insurance for long term care services continues to be sold, only about 10% of older Americans have purchased the coverage. Then those same Americans reported that if long term care needs arose, 53% of them would hire a caregiver or move in with a family member. (Provider magazine, April 2016) We are probably not going to achieve critical mass with long term care insurance products without some form of government involvement or mandate. This is a high risk business for most insurance carriers and as we have seen in the past, the risk was too great for many of them, while others significantly scaled back the benefits they offer in order to manage the risk. So it really all comes back to who is going to pay for this. Personal wealth, family, government…your choice! I think most people would want the choices afforded when paying for it themselves. So let’s talk to them about some of the choices. Yes, long term care insurance is an obvious solution but many simply can’t afford the premiums, can’t medically qualify or simply have an issue with long term care specific coverage. Then why are we not talking about the alternatives available? Life Insurance with access to long term care benefits prior to death, Annuities with access to additional dollars for long term care services, Short term care plans and Recovery Care products. It doesn’t have to be all or nothing when it comes to protection for long term care needs. The next client you sit down with, ask if they are prepared for what many Americans are finding out. We are living longer, with developed health issues that make long term care needs almost inevitable. It’s time for us to make sure our clients know all the options available to them. Their financial future and your livelihood depend on it.
Life Insurance

Loans Too Heavy?

Presented by Gary Peterson As agents, you likely have clients that have used various living benefits of their life insurance over the years.  Some have amassed loans that may be too heavy to repay and have high interest rates.  Financial Brokerage works with a carrier that will examine the policy, and if it qualifies, they will allow a transfer to their policy, including any existing loans.  Give us a call at 800-397-9999 and let’s discuss the best way to help your clients in these situations.
Life Insurance

The Eight Elements of Extended Care Riders – Element…

Presented by Brian Leising The Eight Elements of Extended Care Riders Finding the right formula for each client Not all extended care riders on life insurance policies are created equally. Do you know the differences? Different combinations will appeal to different clients more than others. Here are eight of the major distinguishing features among insurance companies offering extended care riders. All include some combination of the eight elements. This allows you to find the right formula for each client.
Premium Payments Benefit Qualification Benefit Amount
Pf Payment Frequency Pa Payment Amount
Lg Lapse Guarantee Tc Tax Code Pm Payment Method
Wp Waiver of Premium Ep Elimination Period If Inflation
Element 4 – Tax Code and Benefit Qualification Insurance companies file their extended care riders and provisions under one of two (or both) tax codes, 7702(T) or 101(g). What’s the difference? Only the riders filed under 7702(T) may use the words “long term care” to describe the rider. Since the 7702(T) riders are viewed as tax-qualified LTC polices that have been added to a life insurance contract, the LTC benefit in many cases will exceed the death benefit of the underlying policy. Chronic illness riders (101(g)) may only accelerate up to the actual death benefit amount. The difference of greater concern pertains to benefit qualification. With either tax code, benefit qualification depends upon the client losing physical and/or mental abilities. The insured can qualify for benefits by losing the ability to perform two of six activities of daily living (ADL’s) or severe cognitive impairment (such as Alzheimer’s or dementia). With chronic illness riders (101(g)) an additional requirement must be met: the condition must be deemed to be permanent. An insured may recover, but the expectation they will not triggers the chronic illness (101(g)) benefit. Look for Element 5 – Elimination Period in May.
Long Term Care and Disability Insurance

Helping a Business Owner Keep The Business Running

Presented by Michelle Daharsh When small business owners become disabled, there’s a lot more at stake than just their personal obligations to their family. Ongoing business expenses such as rent, utilities, employee salaries and property taxes all need to be met, regardless if the business owner is there or not. Your clients may already have disability income insurance in place to cover their personal expenses and income, but think about what would happen to those clients that own a business if they had a serious accident or an illness? How long would your client’s business survive, and how would they pay their monthly expenses in order to keep their business open? Business Overhead Expense (BOE) insurance is designed to help protect your client’s business if they were to become disabled due to a serious illness or accident and are unable to work. Not only does that business owner have their own personal expenses to worry about, but they also have to pay employee salaries, rent, taxes, utilities, and a host of other expenses of their business. How are they going to be able to do this if they can’t work? Those bills could add up quickly if there isn’t business expense protection in place. A BOE policy will provide monthly payments to help pay those overhead expenses of the business and give your client the peace of mind that their business will continue to be up and running while they are recovering! Without Business Overhead insurance, your client may have to consider other alternatives or potentially close their doors permanently. Unlike a personal disability income policy, which can pay benefits to age 65 due to a disability, a business overhead expense policy generally has a shorter benefit period of one to two years, but for a very specific reason. It allows a business owner that may be recovering from a disability, the time to get things back to some form of normalcy. However, if the disability of the owner is going to be more permanent, then it gives the owner ample time to explore alternatives for the business without being under a hardship to make a quick decision. Give your small business owner clients the power to help protect what they have worked so hard for with a Business Overhead expense policy!