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 your clients that would uncover additional sales?
The fourth question comes in two parts. “Where do you keep your safe money? What is the purpose of these funds?” Aside from emergency money, many seniors have funds they do not plan to spend in their lifetime. The money is earmarked for their children or grandchildren and usually not sitting in a tax-favored vehicle. Many seniors are not aware of the tax implications of their current arrangement. CD’s, savings accounts and mutual funds lose value every year due to taxes. Annuities and qualified plans can defer taxes, but that just means the value to be taxed will be greater when received by the next generation. Why not move those dollars into a vehicle that offers immediate leverage (no need to wait for the funds to grow) and also avoids taxation? A single premium life insurance policy works perfectly in these cases. The death benefit will always be greater than the single premium paid by the client and will pass tax-free to their heirs.
In part five I will look at some other ways to keep Uncle Sam out of the transfer of wealth.