- Taxes are on sale right now (5/9/2018)
Three life insurance sales ideas to help your client take advantage before it is too late
Federal income taxes are on sale right now
2018 Federal income taxes are historically low. Between 1932 and 1986 the top income tax rates were usually above 70%, even spending 15 years above 90%! Rates have been considerably lower for the past three decades. The new tax law (The Tax Cuts and Jobs Act) lowered rates yet again.
Why these low rates can’t last
Congress built increases into the new law. Due to the method Congress used to pass the bill, the individual tax cuts fade over time and become net tax increases starting in 2027. Deficits are predicted to top $1 trillion in 2023 and the National Debt is expected to exceed $33 trillion in 2028.
At some point the additional debt caused by the current Congress will need to be paid. Federal revenue will need to increase to handle this problem. If your clients were hoping for a lower tax bracket in retirement, they might want to rethink that strategy.
How can life insurance help clients take advantage of this low tax window?
It makes sense to pay taxes now and not in the future when they will likely rise. Your clients need a retirement plan that can help them do that. They only have a few choices available, including life insurance, Roth IRA’s and Roth 401(k)’s. The Roth options include limitations not found with life insurance products. Life insurance is unique in that money inside a policy is not subject to current or future taxation is structured and distributed correctly. The Federal government places no age restrictions on access to this money.
Sales Ideas for Young Professionals
Your clients should place their retirement contributions into an index universal life policy to take advantage of the tax treatment listed above. This age group likely does not need extra deductions today as they qualify for several already (mortgage interest, student loans, deductions credits for children). Additionally, due to the arbitrage power of variable loans, index life insurance contracts should out-perform traditional options. The index accounts shield money from downside market risk while allowing for upside growth.
Sales Idea for Pre-Retirees
Most of your clients 10-15 years away from retirement did the popular thing and placed their retirement money into Qualified plans. Since they must pay taxes on this money at some point, why not begin paying taxes on some of this money now? If they delay, both the accounts and tax liability will increase. These clients can cap their taxes today and still enjoy growth. If they are already over 59 ½ they can begin withdrawals from their qualified plans immediately. Withdrawals should be staggered over several years to lessen the annual income tax. If they are below 59 ½ they will need to follow 72(t) rules and take no more than a calculated amount each year to avoid the 10% penalty tax.
Sales Idea for Established Retirees
Some of your retired clients have money they will not spend during their lifetimes. These dollars are earmarked for future generations but are not in the most effective vehicles for that purpose. The money is probably in bank savings accounts, CD’s or even annuities earning low rates of return. You could move the dollars into a wealth transfer index life policy for greater leverage. Your retired clients do not have the life expectancy to grow the asset to an amount equal to the death benefit after taxes. If the vehicle is tax-deferred or tax-qualified, why not pay the taxes at today’s low rates? They could save their heirs unnecessary taxes. When these clients pass away qualified assets will likely pass to adult children during their peak income earning years. They should lock in this tax expense at a low rate today and enjoy a 100% tax-free benefit in the future. An index product eliminates downside risk while allowing for growth as cash values increase.
- Why everyone you meet is worth $1,000! (5/8/2018)
- Agent Referral Program (4/26/2018)
Are you familiar with the Agent Referral Program at Financial Brokerage? Here is how it works: refer an agent to us and you get a bonus on all lines of their production for 10 years! Submit the referral on our website, and we do the rest for you!
Contact your marketing team with questions.
Thank you for your business and we look forward to helping you get started in this fabulous program.
- Looking for Performance and Reliability? (4/17/2018)
Performance and Reliability?
Both qualities matter when searching for the best IUL. That’s why our IUL portfolio includes the best performing IUL’s with the most stable companies in the country. The numbers prove it!
Your clients want tax free income with no market risk!
- Take the worry of paying for medical care out of retirement! (4/4/2018) – Take the worry of paying for medical care out of retirement!
- Mind the Gap (3/28/2018) – How do you address the great retirement income gap your clients will face in their late retirement years? Do you realize their income gap is YOUR income gap? Many advisors find their clients prefer the life insurance based solutions. Their Income Gap is Your income Gap Video » Using Earned IncomePDF » The Great Income […]
- Ensight Webinar (3/15/2018) – Put Some Life into Your Life Insurance PresentationsThe first proposal visualization platform, providing an intuitive, interactive customer experience. Put Some Life into Your Life Insurance Presentations. Increase Customer Understanding & Sales Conversion. How Do I Start?Want to take a look? Here’s a virtual tour of the presentation system. These presentations are available […]
- Ensight Proposal Visualization Software (2/5/2018) – This content is restricted to site members. If you are an existing user, please log in. New users may register below. Forgot Your Password? Existing Users Log InUsernamePassword Remember Me Forgot password? Click here to resetNew User? Click here to register
- Vlog Episode 21 – Key Person vs. Buy-Sell (3/16/2017) – VLOG Episode 21 – Key Person vs. Buy-Sell
- Tax Fact Sheet for 2016 (1/5/2016) – View the important 2016 tax info HERE.
- Upcoming Mortality Table Changes Will Lower Annuity Payouts – by David Corwin, Annuity Sales Manager (10/1/2015) –
- Annuity Sales Talk – Athene Annuity (7/27/2015) –
- New Regulation Inhibits Use of Annuities in Retirement (7/24/2015) – By Rich Mangiameli The federal government should be applying a scalpel rather than a sledgehammer! It is very important for todays’ advisor to understand that the administration has recently instructed the Department of Labor to establish a fiduciary standard for financial & insurance professionals advising clients about their retirement accounts, including their options for rolling […]
- Silver, Gold or Platinum – where will you be? (1/29/2015) – Presented by David Corwin When it comes to perks, you want a program that gives you that little extra that you deserve and rewards you for your efforts and gives you money to put back into your business. Financial Brokerage has pulled out all the stops as we’ve just announced the Elite Producer Group […]
- What Social Security Seminars can do for YOU – Part 2 (12/31/2014) – Presented by Brian Leising Let’s put our two problems (you need more clients, pre-retirees need professional help) together and come up with a plan to help both parties. How many of your clients nearing retirement know their optimal social security filing option? What if you could help them make sense of governmental red tape and […]
- Annuity Risks Clients Should Consider (12/22/2014) – Presented by David Corwin I read an email recently and thought it would be great to share some of the talking points and also share some videos supporting the ideas mentioned. It spoke about the different risks that are out there that clients should consider when purchasing an annuity. The first one is Interest rate […]
- What Social Security Seminars can do for YOU – Part 1 (12/17/2014) – Presented by Brian Leising Some things are better together, like peanut butter and jelly, nuts and bolts, I’m sure you’ve seen the commercials. I want to talk about two types of people that go better together: baby boomers nearing retirement age and insurance producers looking for new clients. Do any of these problems apply to […]
- 2015 is Almost Here (12/15/2014) – Presented by Gary Peterson To help jump start your business see below. Life insurance left untouched may no longer be meeting your clients’ needs. By implementing a periodic policy review as part of your client retention process, you will keep a client’s protection program up-to-date and provide a valuable after-the-sale service. The net result will […]
- High Deductible Survival Plan – Part Three (12/9/2014) – Presented by Brian Leising In parts one and two, I explained how a basic term life policy with a critical illness provision could help your clients pay their health insurance deductibles in the event of a major illness. In this part, I will introduce methods and tools you can use to market this new term […]
- HYBRID (12/8/2014) – Presented by Richard Mangiameli If you look up the definition of “hybrid”, one of the results is “anything derived from heterogeneous sources, or composed of elements of different or incongruous kinds”. We can find Hybrid Power, Hybrid Literature, Hybrid Games and of course Hybrid Vehicles. In the insurance industry, we have hybrid insurance products where […]
- Final Expense vs Whole Life (12/4/2014) – Presented by Gary Peterson Here is an idea I received from two of our whole life/final expense carriers: These two carriers offer no-exam whole life plans that extend down into the final expense range ($10,000 to $25,000). What’s the difference? The final expense underwriting is faster but costs more. The client should be able to […]
- Transactional Selling vs. Solution-Based Selling (12/3/2014) – Presented by David Corwin My money (pardon the pun), is on solution-based selling; the difference being that transactional-based selling is too much related to the product itself. In other words, it means suggesting or pushing a particular product to your client before even learning that it might not benefit them. Imagine going to a car […]
- It’s time to break the ice on the topic of extended care planning with your clients (12/2/2014) – Presented by Donna Ries Even a short time spent talking today with your clients can help them avoid years of dealing with the consequences of hasty, sporadic decisions later on. We all age and most people end up needing help in some shape or form. Discussing possible scenarios with your clients won’t make them happen. […]
- High Deductible Survival Plan – Part Two (12/1/2014) – Presented by Brian Leising In part one, I discussed the needs many people have for both money to pay high health insurance deductibles and life insurance coverage. What if a life insurance policy could provide a traditional death benefit and a living benefit that clients could use to cover their deductible? Such policies do exist. […]
- The Rule of 72 (11/25/2014) – Presented by Richard Mangiameli The Rule of 72 is a shortcut to determine how long it takes for capital to double, and double again. For example, if you invest $100,000 and earn 7% per annum, you can divide 72 by 7 and learn that your money doubles – $200,000 in about 10 years. If you […]
- My Money Is Going Where? (11/24/2014) – Presented by Gary Peterson Do your clients have a plan for their IRA when they pass away? Do they know the government will be a beneficiary? Exactly how much money will pass to loved ones? What if they could: – Keep their IRA in their care, custody and control; – Potentially double or triple the […]
- The Important Decision at Retirement (11/20/2014) – Presented by David Corwin Did you know that, at retirement, you might have to make a difficult decision that could negatively impact your future financial security and that of your spouse? At retirement, you will have to decide how your pension benefit will be paid out for the rest of your life: Should you elect […]
- ROP Rider for a Younger Client (11/19/2014) – Presented by Donna Ries Here’s an idea to consider for a younger client: Protecting an income should be a client’s top priority. One option that may be advantageous for a younger client is the return of premium rider on a disability insurance policy. For example, a 27 year old female administrative office worker making $30,000 […]
- High Deductible Survival Plan – Part One (11/18/2014) – Presented by Brian Leising Do you have clients with high deductible health insurance policies? Do you know people that need term life insurance? What do these questions even have in common? Follow along and I will explain. With the recent changes in the health insurance market, more people than ever now have high deductible plans. […]
- Part of the Plan (11/17/2014) – Presented by Richard Mangiameli When considering retirement income planning, life insurance and annuities should be part of the plan, because they may provide the most direct and efficient way to reach ones retirement goals.
- College Planning Market (11/13/2014) – Presented by Gary Peterson If you work in the college planning market, you are well aware of strategies to move assets or overfund permanent life insurance policies for tax-free cash. What’s better than rearranging existing dollars into better funding vehicles? How about FREE MONEY! One of our life insurance carriers actually offers college scholarships to […]
- Health Care in Retirement (11/12/2014) – Presented by David Corwin In 2012, men reaching age 65 had an average additional life expectancy of 17.8 years, while woman reaching age 65 could expect to live an additional 20.4 years on average. While estimates vary, a couple retiring at age 65 without private health insurance from a former employer can expect to pay […]
- Are you living with half a health plan? (11/11/2014) – Presented by Donna Ries Medical plans cover the costs of doctors and hospitals, but are your clients prepared to cover the financial costs when an unexpected, devastating event occurs and they are unable to work? Without an income, who will pay for the basic necessities such as mortgage payments, utilities, gas, groceries and other necessities? […]
- Six Questions for Six Life Insurance Sales to Seniors – Part 6 (11/10/2014) – Presented by Brian Leising Do you have senior clients? Did they purchase only one product from you? Was it a Medicare supplement, annuity, long term care or final expense policy? If you were able to uncover the need for one insurance product, could you uncover another? What if you had six simple questions to ask […]
- Conversations with Aging Parents (11/6/2014) – Presented by Richard Mangiameli Attached is a nice piece that was put together by F&G Life, on how to approach conversations with aging parents. This is a great thing to share, as I can see you using this as a business opportunity/value-add in a couple of different ways: 1) To use with existing clients who […]
- Don’t Make Your Client’s Sell at a Loss (11/5/2014) – Presented by Gary Peterson Managing the effects of financial market fluctuations is a critical element in retirement planning. If retirees receive plan distributions in a stable or rising market, they have the potential to preserve or grow their retirement assets. If these clients take distributions in a declining market, they are often drawing down and […]
- You’re More Than an “Insurance Agent” (11/4/2014) – Presented by David Corwin When someone asks you what you do for a living are you at a loss other than to say you are an insurance agent? People have their own preconceived notions of what an insurance agent is and often it isn’t as flattering as we might want it to be. People know […]
- An Untapped Opportunity? (11/3/2014) – Presented by Donna Ries According to the September 2013 U.S. Small Business Administration Office of Advocacy, with over 23 million small businesses in the United States, the market opportunity for business protection solutions is wide open. Small businesses need protection if an owner would become too sick or hurt to work. Overhead Expense insurance keeps […]
- Six Questions for Six Life Insurance Sales to Seniors – Part 5 (10/30/2014) – Presented by Brian Leising Do you have senior clients? Did they purchase only one product from you? Was it a Medicare supplement, annuity, long term care or final expense policy? If you were able to uncover the need for one insurance product, could you uncover another? What if you had six simple questions to ask […]
- 10,000 Boomers to retire each day! (10/29/2014) – Presented by Richard Mangiameli Over the next 19 years that’s 64,850,000 boomers trying to figure out how to take the most advantage of their financial investments. Here are some key points: Boomers are internet savvy and are searching for help. You need to have a presence on the internet using all the different types of […]
- Have you arrived? (10/28/2014) – Presented by David Corwin In my position with working with many agents it dawns on me that many if not all insurance professionals want to arrive. Arrive defined is “to reach a place at the end of a journey or a stage in a journey.” I define it as complacency or becoming comfortable. Too comfortable […]
- Legacy Building (10/27/2014) – Presented by Gary Peterson Legacy building is a strategy that utilizes the leverage of permanent life insurance as an efficient way to pass along assets to beneficiaries. Often, existing funds are transferred to a life insurance policy, which immediately increases the amount of the legacy in the form of the death benefit. North American has […]
- What’s your disability IQ? (10/24/2014) – Presented by Donna Ries When it comes to the chances of becoming disabled, how knowledgeable are you? Take a quick quiz to test your disability IQ from the Council of Disability Awareness. Some of the answers may surprise you. Click here for quiz No matter what your disability IQ may be, it is often a […]
- Are you “in the business” or do you just have an insurance license? (10/23/2014) – Presented by David Corwin 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 a strategy for your business and in particular, your marketing strategy. Set targets and objectives, including sales and financial goals […]
- Six Questions for Six Life Insurance Sales to Seniors – Part 4 (10/22/2014) – Presented by Brian Leising Do you have senior clients? Did they purchase only one product from you? Was it a Medicare supplement, annuity, long term care or final expense policy? If you were able to uncover the need for one insurance product, could you uncover another? What if you had six simple questions to ask […]
- Periodic Policy Reviews (10/14/2014) – Presented by Gary Peterson Life insurance left untouched may no longer be meeting your clients’ needs. By implementing a periodic policy review as part of your client retention process, you will keep a client’s protection program up-to-date and provide a valuable after-the-sale service. The net result will be happier clients, the identification of additional sales […]
- Why we do what we do (10/3/2014) – Presented David Corwin Anyone who has been in the life insurance business for any length of time will tell you that if there is a single reason why they would look for a new profession, it would most likely be the rejection they receive in an effort to sell life insurance. When we let our […]
- Six Questions for Six Life Insurance Sales to Seniors – Part 3 (10/1/2014) – Presented by Brian Leising Do you have senior clients? Did they purchase only one product from you? Was it a Medicare supplement, annuity, long term care or final expense policy? If you were able to uncover the need for one insurance product, could you uncover another? What if you had six simple questions to ask […]
- Annuity Hybrid LTC Plans (9/24/2014) – Presented by David Corwin The Need: Let’s say you have evaluated the possibility that you will need long-term care at some point in the future and concluded that purchasing long-term care insurance to cover at least a portion of long-term care costs might make sense in your situation. You are, however, concerned about paying premiums […]
- Use Your Own Book of Business (9/23/2014) – Presented by Gary Peterson Here is an opportunity that several of our agents have offered to their clients and received great results. Give me a call and let’s see if you have any of your clients available. The hottest leads you will ever have is your own book of business. You’ve already sold something to […]
- Six Questions for Six Life Insurance Sales to Seniors – Part 2 (9/10/2014) – Presented by Brian Leising Do you have senior clients? Did they purchase only one product from you? Was it a Medicare Supplement, annuity, long term care or final expense policy? If you were able to uncover the need for one insurance product, could you uncover another? What if you had six simple questions to ask […]
- How much is your life worth? (9/9/2014) – Presented by Richard Mangiameli How much is your life worth? Don’t sweat the small stuff – it is all small stuff! Allow me to help you with your next Annuity case. It is not my job to be served… it is my job to serve. It is also my job to know my customers. If […]
- Are you helping your annuity clients with life insurance solutions? (9/2/2014) – Presented Brian Leising Turn your annuity clients into life insurance sales with a discussion about taxes on the annuity gains. First, find out if the annuity money is “live on” money or “leave on” money. “Live on” money means they will be taking distributions to cover income needs in retirement. “Leave on” money is the […]
- Be the “Quarterback Advisor” (8/19/2014) – Presented by Life Marketing Many agents love sports analogies when talking about business – I know I do. Well, here is one that you might relate to. We have all heard to be all things to our clients. Many have tried, only some have succeeded. Still others may wonder what does this mean. Have you […]