The Greatest Threat to Retirement Savings

The Greatest Threat to Retirement Savings
What do you think is the greatest threat to your client’s retirement savings?

It’s not stock market declines. The stock market bounces back after a fall, the elderly do not. In fact, once a person reaches age 65, there is a 70% chance they will need long term care before they pass away. For a couple that translates into a 90% chance.

There are several ways to combat this threat: traditional long term care insurance, an annuity with a long term care provision or life insurance policy with a long term care rider. Which is right for your clients?
 

Which Life/LTC Insurance Combo is the Best?

Which Life/LTC Insurance Combo is the Best?
How do you know when to use universal life insurance with a LTC rider or a true hybrid life/LTC product?

We usually associate hybrids with clients that can afford larger premiums since these products are usually available as short-pay or single pay plans. Likewise, we propose ULs with riders for clients with less cash flow. You might be surprised to learn that for most of your clients, the hybrids provide a better value even though the initial premium may be slightly higher. The lowest initial premium is not always the best option for every client.

Announcing Our 2020 Incentive Trips



A captivating fusion of the modernism of North America and the traditional charm of Europe, Montréal is a city with so many faces. With a French heart and a distinctly Canadian charm, Montréal is unlike anywhere else that you have ever been.

Montréal Only…
$45,000* Annualized Life Premium
$1,125,000* Annuity or Linked Benefit Premium
$67,500* Annualized LTC/DI Premium
Medicare Supplement and Critical Illness premiums count as well!
Qualification Period – January 1, 2019 – December 31, 2019.
Business submitted in 2019 and paid by March 31, 2020.
* See www.fbinc.wpengine.com/2020-incentive-trips for official rules and additional information.


With a historic city centre, tons of cultural events and nature at its doorstep, Québec City is the perfect destination for anyone who loves culture, history, food, and the great outdoors.

Old Québec immerses you in an unforgettable journey through time. Stroll through the historical districts, all within walking distance from each other. This eminently walkable historic neighQuébecbourhood offers up an incredible mix of wow-inducing winter scenes and Old World charm.

Québec Only…
$45,000* Annualized Life Premium
$1,125,000* Annuity or Linked Benefit Premium
$67,500* Annualized LTC/DI Premium
Medicare Supplement and Critical Illness premiums count as well!
Qualification Period – January 1, 2019 – December 31, 2019.
Business submitted in 2019 and paid by March 31, 2020.
* See www.fbinc.wpengine.com/2020-incentive-trips for official rules and additional information.
These two French Canadian cities are just a train ride away from each other. Go all out and use your success shares to experience both cities back to back!
$70,000* Annualized Life Premium
$1,750,000* Annuity or Linked Benefit Premium
$105,000* Annualized LTC/DI Premium
Medicare Supplement and Critical Illness premiums count as well!

Why Permanent Life Insurance?

Many times when we think of the most common reasons why someone might purchase life insurance, we think of some of the major financial risks our clients face if they die before they retire. These common risks include lost income, the ability to pay off a mortgage and the ability to fund a college education for children. Typically because all of these risks prior to retirement are temporary, they are protected with term life insurance. As your client gets closer to retirement these risks are greatly reduced. With term life insurance your clients can typically purchase a large death benefit for pennies on the dollar, and they can choose not to continue coverage after the level term period expires. So as a life insurance agent or financial advisor, why would I ever recommend purchasing permanent life insurance to my clients? To answer that question you should consider another question first. Why do my clients need life insurance after they retire? There are several risks that clients face after they retire that are not as commonly discussed but can have a major impact on your client’s retirement plans. These include unknowns like the potential of increasing tax rates, stock market volatility, underestimating how much they’ll spend in retirement, lost social security income due to either the death of the spouse or changes to the program and many others that we could spend more time on. Today I want to highlight a particular risk that can have a devastating impact not only on your client’s financial situation, but on their children’s and grandchildren’s future as well. This is the risk of long term health care expenses that arise as our client’s age. Long term care is more expensive than most think and many will be responsible for covering their expenses. According to a 2017 AARP fact sheet, 52% of people turning 65 will need long term care services in their lifetime. Because these services cost several thousand dollars a month and can last for years, this is a risk that must be addressed. Life Insurance with living benefits is becoming more common as a way to protect against this risk. The flexibility of these policies make them a very attractive option for those worried about paying for expensive long term care insurance and never using it. These policies come in all shapes and sizes in terms of guarantees, how interest is credited, how to access the benefits, etc. So what should you recommend to your clients? Well we certainly have our favorites here at Financial Brokerage that we’d love to discuss with you, but I’ll share a brief hypothetical example using a product that’s currently on the market to highlight some features available that we favor. CASE STUDY • 45 year old male at preferred non-tobacco • $309.84 per month in premium for 20 years (paid up at age 65) • $250,000 face amount/ $5,000 per month true LTC benefit • At age 65     • Guaranteed option to surrender policy for return of 100% of premiums paid Or: • $92,855 of cash value • No lapse guarantee death benefit of $250,000/ $5,000 per month LTC coverage to age 85 • Cash value expected to grow and death benefit/ LTC coverage projected to run to age 120 With 1 policy you cover part of your client’s pre-retirement death benefit need; you protect against their health care expense need throughout retirement, and they also accumulate cash value in reserve to hedge against other unexpected financial risks in retirement.
— Since 1996 —
 
800-397-9999
17110 Marcy Street • Omaha, NE 68118
www.fbinc.wpengine.com
 

Facing our own Mortality: Will your Trip be Memorable?

Presented by Leonard Berthelsen The data is out there, 70 million baby boomers are entering retirement and also coming to grips with their own mortality.  Will our clients be ready for this trip and will you make it a memorable one for them and their families? Retirement should be all about family, friends, faith, travel and many pleasant memories.  Planning now for the possibility of a Long Term Care need erases the concerns of who will provide care, where that care will be rendered, and how often.  Give your clients peace of mind and allow them to focus on the things that really matter in retirement. Long term care coverage is that peace that so many individuals and their families share in this aging trip.  Have you made that available to your clients or had the conversation about this? I have discussed in other blog postings about friends and family affected by this process.  The more I reflect on this issue, the more keenly aware I become that we have to have this conversation.  Yes, it is the professional, ethical, and right thing to do, but sometimes this conversation can be difficult.  I have come to the conclusion that in order for there to be a peaceful, memorable process for this aging trip, I need to find a way to soften the financial burden associated with it. Whether it is traditional long term care insurance, a hybrid life insurance plan or a linked benefit annuity, it doesn’t matter, something needs to be there to help our clients with this aging trip.  Have you had the conversation; is your client and their family going to have a peaceful and memorable trip?