The Eight Elements of Extended Care Riders – Element…
Presented by Brian Leising The Eight Elements of Extended Care Riders Finding the right formula for each client Not all extended care riders on life insurance policies are created equally. Do you know the differences? Different combinations will appeal to different clients more than others. Here are eight of the major distinguishing features among insurance companies offering extended care riders. All include some combination of the eight elements. This allows you to find the right formula for each client.Premium Payments | Benefit Qualification | Benefit Amount |
Pf Payment Frequency | Pa Payment Amount | |
Lg Lapse Guarantee | Tc Tax Code | Pm Payment Method |
Wp Waiver of Premium | Ep Elimination Period | If Inflation |
4 Common Mistakes Your Clients May Be Making When…
Presented by Michelle Daharsh When having a conversation about disability income protection with your clients, you will probably come across some common reasons stated as to why they don’t need it or want it. Most times when your client is asked about “disability insurance” they think it’s about getting hurt or injured. A better way to get their attention is asking them how long they could go without a paycheck. Below are four common reasons that your clients aren’t buying “paycheck protection” insurance – or Disability Income Insurance:- It won’t happen to me because I plan to stay healthy. We all think and hope this. However, one in four 20 year olds will become disabled by the time they are age 67. (Social Security Administration, Fact Sheet, February 2013). How many of your clients will possibly fall into this statistic? In fact, illnesses account for approximately 90% of disability insurance claims…not accidents.
- Social Security will take care of me, right? It may, but will your clients qualify for benefits? How long will it take to get approved and how much will they receive? About 45% of individuals that apply for Social Security disability benefits are initially denied, and those who are approved receive an average of $1100 a month. Plus, it’s a process that can potentially take up to two years for approval before benefits begin. How long can your client wait for a paycheck and would this average benefit be enough?
- I have coverage through my Employer. Many times through employer plans, the benefits are taxed, policies are not portable, and they have maximum limits on benefits offered. This is a great opportunity where you can provide education on their actual benefits and truly uncover the additional income protection that you could provide them with an individual policy.
- I can rely on my savings. They probably can for a limited time, but have your clients really looked at their day-to-day living expenses and priorities and figured out how long their savings would last? About half of working Americans report that they couldn’t make it 30 days without a paycheck. Do your clients fit in this category? Can they make it a month, three months, a year – and if they have savings, is it really enough to cover them for an extended period of time.
MYTH: “I won’t need life insurance when I retire.”
Presented by Brian LeisingFour responses you can use with your clients.
4- Really? So, that means you love the government more than you love your family?
Did you know your money can go three places when you die? Your family, charity, or the government. Even if you will all your assets to your family, the government may still inherit part of it. All money in IRAs, 401(k)s or other Qualified Plans, plus growth in non-Qualified annuities is taxable to the person receiving it. The government is going to get their share, but will your family get theirs? Life insurance death benefits pass tax-free to beneficiaries. Why not purchase a life insurance policy to cover the taxes your family will pay the government upon your death? Better yet, you could omit the government completely with proper planning. You could name a charity as beneficiary of your Qualified money (charities pay no income tax) and replace the value of the asset with a life insurance policy. Your loved ones win, your favorite charity wins and the government gets nothing. As George Thorogood says, “Who do you love?”