Life Insurance - Financial Brokerage Inc.

With whom do you want to leave your money

Presented by Gary Peterson If given the choice, to whom would your clients want to leave their money: 1. Loved Ones 2. Charity 3. The Government With your assistance, your clients could potentially leave all of their money to all other than the government. Use the RMD from their IRA or qualified plan to purchase life insurance that will pay the taxes to Uncle Sam and leave their assets for their kids or charity. Here is a hypothetical example: Client has a $500,000 IRA. Upon death, taxes and costs could amount to $200,000. Purchase a Survivorship life insurance policy for $200,000 with the RMD. The children can use the benefit to pay the taxes and have the $500,000 to liquidate to continue tax deferral as long as possible. Better yet, use the RMD and purchase a $500,000 policy and make the beneficiary of the IRA a charity. If done properly, all of the funds ($1 Million) would be received income tax free. Contact your life marketer at 800-397-9999 for more details.

The Eight Elements of Extended Care Riders – Element…

Presented by Brian Leising 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 8 – Inflation While inflation protection is common on traditional LTC policies, it is not commonly found on extended care riders. Some insurance companies do give clients the option to increase their monthly coverage at rates including 3% or 5% simple or compound interest, but this is rare. How else can we match the increasing benefit commonly found on LTC policies? One way to approximate the increase is to use an increasing death benefit option on a universal life policy. The death benefit (and corresponding extended care benefit) is the initial death benefit plus the accumulated cash value. The increase depends upon both the amount of money placed into the policy and the performance of the index account or the dividends declared by the company. An increase in death benefit equals an increase in extended care benefits. Another option to increase the benefit amount would be use the Federal per diem amount as the monthly payout. With the per diem option, the client’s monthly benefit is equal to the current Federal per diem benefit amount ($340/day in 2016). The amount has traditionally been increased by the Federal government an average of 4% per year. Although not guaranteed, this could mimic inflation protection. Keep in mind, the per diem monthly benefit does not increase the total amount of money available for extended care, just the monthly amount.

The Eight Elements of Extended Care Riders – Element…

Presented by Brian Leising inding 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 7 – Payment method Insurance companies pay extended care benefits via one of two methods: reimbursement or indemnity. With the reimbursement model, the company either pays the insured’s health care providers directly or reimburses the insured upon proof of care expenses. The indemnity model offers the client a lump sum payment without having to provide an exact accounting of expenses. The insured may use the money however they wish. Some extended care expenses may fall outside the realm of traditional services. Maybe they wish to compensate a neighbor or loved one for providing care. The money could also be used to fly a loved one across the country, or for their hotel and meals while visiting. If the clients’ expenses fall below the indemnity benefit, they could request a lesser amount, save or invest the extra dollars. Look for Element 8 – Inflation in August.

Simple

Presented by Gary Peterson Let’s get back to making life insurance simple. You can now submit term insurance for $500,000 or less and potentially get Preferred Plus rates for your clients without any medicals. We have three carriers that will look at your clients’ information and possibly issue policies in 5-7 days at the best rate available for their situation. Give us a call at 800-397-9999 to learn just how simple this process can be – for both you and your clients!

North American – New Crediting Strategy

	NEW Threshold Participation Strategy (TPS) Training Required	Available on NAC IncomeChoice 10 and NAC Performance Choice (8 Plus-, 8, 12 Plus-, 12-Year) fixed index annuities. (Not available in CA, HI, ID, IL, IN, NH, OH, PA, RI, SC, UT.) TRAINING IS REQUIRED – click the link below for details.

	NEW Index Accounts and Crediting Methods on NAC IncomeChoice	In addition to the new TPS crediting method, additional changes to the MNL IncomeVantage include changing to 6 crediting methods and 3 index options.

	IMPORTANT: Due to the changes in crediting methods and approval by states, new allocation forms will be required for all products. Please follow the links above for the new forms. NEW BUSINESS GUIDELINES: The changes noted above will apply to applications received on or after June 7, 2016. To receive the previous product design, applications must be received prior to June 7, 2016.