Linked-Benefit Policies

Authored by Brian Leising You have probably heard of hybrid life/long term care policies that link benefits together in one policy.  Have you sold any?  For many producers, the thought of selling long term care is a bit daunting.  Linking the living benefits to a life policy makes it easier.  A top producer recently shared four reasons his clients purchase linked-benefit policies. 1.  The additional long term care benefit makes a sure sale even better.  So many carriers offer linked-benefits that often the best-priced life policy contains a long term care provision. 2.  Clients need both products but can only afford to purchase one policy.  Clients can realize significant cost-savings when purchasing one policy rather than two. 3.  The long term care benefit provides the extra sizzle needed to close the sale.  Some people balk at paying any new premiums, but the extra benefit makes the policy more attractive. 4.  The life insurance benefit helps overcome a common long term care objection.  Clients can be sure someone will benefit from their decision.  They will receive living benefits for long term care or their heirs will receive a death benefit.

How Can an Income Annuity Protect Against the Risk…

Authored by Matt Nutzman The purpose of an annuity is to protect against the financial risk of living too long…the risk of outliving retirement income…by providing an income guaranteed* for life. In fact, an annuity is the ONLY financial vehicle that can systematically liquidate a sum of money in such a way that income can be guaranteed* for as long as you live! Here’s How an Income Annuity Works:
  • The annuitant pays a single premium to an insurance company.
  • Beginning immediately or shortly after the single premium is paid, the insurance company pays the annuitant an income guaranteed* to continue for as long as the annuitant is alive, assuming the annuitant selects a life income option. There are other payout options also available.
  • The insurance company pays survivor benefits, if any, to the annuitant’s designated beneficiary after the annuitant’s death.
* Guarantee is based on the continued claims-paying ability of the issuing insurance company. Please contact my office if you’re interested in discussing possible income annuity solutions to the “risk of living too long.”

Roth IRA Basics in 2013

Authored by Jim Guynan

Eligibility: (2013)

Single taxpayers with adjusted gross income of up to $112,000 or married couples filing jointly with adjusted gross income of up to $178,000 are eligible to contribute the full $5,500 annually to a Roth IRA in 2013. Workers who are age 50 or older may contribute an additional $1,000 to a Roth IRA in 2013, for a total of $6,500.

The contribution amount in 2013 is gradually reduced to zero for adjusted gross income levels between $112,000 and $127,000 for single taxpayers, and between $178,000 and $188,000 for couples.

Unlike regular IRAs, contributions to a Roth IRA can be made even after age 70-1/2.

Deductibility:

Contributions to a Roth IRA are non-deductible. Instead, the tax advantages of a Roth IRA are “backloaded.” Earnings on Roth IRA contributions accumulate without tax and distributions may be received tax free.

Qualified Distributions:

Qualified distributions from a Roth IRA are not included in gross income and are not subject to the additional 10% penalty tax for premature distributions. To be a tax-free qualified distribution:

  • The distribution must occur more than five years after the individual first contributed to the Roth IRA; and
  • The individual must be at least 59-1/2 years old, disabled, deceased or the funds must be used to purchase a first home ($10,000 lifetime limit).

Converting from a Traditional IRA to a Roth IRA:

Income taxes must be paid on the amount that is converted from a traditional IRA to a Roth IRA, but there is no premature distribution penalty tax.

Get “in the business”

Authored by David Corwin Are you “in the business” or do you just have an insurance license? Here are some indicators to tell you where you are:
  • Do you have a business plan? Crafting a meaningful business plan takes a lot of thought and time. Set out the strategy for your business – particularly your marketing strategy. Set targets and objectives, including sales and financial goals so that you can monitor business performance.
  • Are you actively looking for new prospects (referrals and warm market) or just replacing the business you wrote in the past?  It really should be a 60/40 split. Sixty percent of your marketing efforts should be spent on referrals and warm marketing. Forty percent should be reviewing clients that you’ve written before, both fostering the relationship built as well as looking for new business.
  • Are you running enough appointments throughout every week to get the results you want?  The old numbers game.  It only makes sense that if you have enough lines in the water the more fish you will catch. The more successful agents run between 10-15 appointments per week.  If you’re running less than that…..run more. It’s as simple as that.
  • On your appointments do you implement a fact finder to obtain material facts that allow for cross selling opportunities?  If you don’t, well then you’re probably an order taker and if you don’t have what they want then you’ll go back to your office without the business.  Last I checked, an insurance license allows you to sell Life Insurance, Annuities, Health Insurance, Long Term Care and Disability Insurance.  If you don’t use one, then you just have an insurance license.
  • Are you furthering your education through industry leading programs like CLU, ChFC, CFP?  Furthering your education makes you better informed to assist with the variety of unique requirements that individuals, professionals, and business owners may have with respect to their estate planning, wealth transfer, income replacement and risk management needs. Holders of these designations increase their sales by up to 51%.

Bring Social Media Into Your Marketing Plan

Authored by John Schraut Any insurance industry publication you look at now has ways to use social media.  So my question to you, do you have a Facebook, Twitter or LinkedIn account for your business? If not, you are losing out on ways to connect with other professionals and potential clients.  Best of all – it’s FREE! In a recent survey I saw, it said; More than 60% of advisors have used LinkedIn to gain new clients.  75% said it has improved their effectiveness of their referral network. So how many clients have you gained from your social media marketing plan?