- Which Life/LTC Insurance Combo is the Best? (3/18/2019)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.
- Sales Idea 68 – Non-Med IUL on a Budget (3/11/2019)Non-Med IUL on a BudgetThe average index universal life (IUL) insurance premium is just over $9,000 per year. What about clients working with a smaller budget? Can an IUL still work for them?
This convenient chart shows retirement income amounts for several ages based on much lower monthly contributions to an IUL. Better yet, many of these amounts will not require your clients to complete a paramedical exam or labs.
Let us know if you would like copy of the pdf. This works with individuals as well as groups. In fact, the idea was meant to be used in an employer group setting.
- Sales Idea – IUL or 401(k)? Which is right for your clients? (3/4/2019)IUL or 401(k)?
Which is right for your clients?Many people fund 401(k) plans for retirement savings, but are they right for everybody? Would something else be better? In this video, I explore pros and cons of 401(k) plans when compared to an overfunded index universal life (IUL) insurance policy. For some people, the tax free income, no risk of loss and other benefits in an IUL outweigh the risk of loss and restrictions found in 401(k) plans.
Let me know if you would like a copy of the handy one-page chart that compares the differences. You can use this to explain why your clients may be better off using indexed universal life insurance instead of a traditional 401(k).
- Sales Idea 19 – Two Reasons to Move IRA Funds to Permanent Life Insurance (2/25/2019)Two Reasons to Move IRA Funds to Permanent Life InsuranceTwo Reasons to Move IRA Funds to Permanent Life Insurance
Do you have clients with money in IRA’s right now? Here are two reasons to consider moving those funds to a permanent life insurance policy:
1) Market risk – The stock market goes up and down, but when? Nobody knows. Index returns in a life insurance policy lock in gains with no exposure to downside losses when the market declines.
2) Taxes – Since clients receive a deduction for funds placed into an IRA, those funds (plus growth) will be taxed upon withdrawal. The larger the IRA, the greater the tax burden to your clients or their heirs. With an ever increasing national debt, taxes are likely to increase in the future. Plus, clients in their working years generally have deductions available now that they may not have in the future (mortgage interest, dependents).
Why not pay the taxes today when rates are at historic lows and their deductions may be at historic highs?
Who fits the ideal criteria for this concept?
Clients in their 60’s. They don’t need to worry about the 10% tax penalty for withdrawing qualified funds prior to age 59 1/2. You should stretch the withdrawals over 10 years if you can to reduce the annual taxes. As long as clients move the money prior to age 70 1/2, they will not need to worry about required minimum distributions. They will still have to pay taxes, but now they can pay when tax rates are at historic lows.
As a bonus, with no taxable retirement income, your clients won’t have to worry about their social security income becoming taxable.