Life Insurance

Leave-On Money

Presented by Brian Leising

You can’t take it with you, but you can maximize what you leave behind

How many of your clients have “leave-on” money, funds they don’t need to live on but to pass on? What kind of advice have you been able to give them on this money? What commissions have you been able to generate in these situations? (Not much I’ll bet) How would your clients react if you could double or triple their legacy funds with no additional risk, immediately? What do consumers have now? Seniors that have their own financial affairs in order want to leave a legacy to their family. Many view the stock market as too risky and place their money in the bank, keeping it safe. Others like to avoid current taxation with funds in annuities and qualified accounts. What’s wrong with that? Money in the bank – earns next to nothing, and those meager earnings are taxable. Money in annuities – represents a tax time bomb; these funds will defer taxes to the next generation, likely during their peak income earning years and highest tax brackets. Money in qualified funds – like annuities but worse as RMD’s may be required and every dollar is taxable. What’s the solution? Wealth transfer life insurance can help your clients leverage their legacy funds, often providing two to three times their current value, immediately. A one-page application without a medical exam is all it takes to improve your clients’ situation and yours as well. Don’t leave money on the table. Help your clients with their “leave-on” money.
Life Insurance

What’s behind door number 3? A life insurance conversion…

Presented by Brian Leising   Are you unhappy with the conversion options available to your clients? Not able to sell term and permanent coverage to every client every time?  Here’s another option to consider: Return of Premium (ROP) term.  How can ROP help?  At the end of the term the client receives cash, walks away and that’s the end of it, right?  Most carriers offering ROP actually give the clients three options.  The obvious option is to take the cash and run.  The client could also apply the cash to convert to whatever permanent plan the carrier makes available at the time, thereby reducing the required premiums to maintain the same face amount.  What people tend to forget is the third option.  The client can choose to use the ROP funds to purchase a reduced paid-up policy.  The policy is paid-up…guaranteed. Here’s an example from one company using a preferred non-smoking male age 35 for $500,000: The annual premium is $110.  After 30 years the person could choose a $64,322 paid-up policy.  He could alternatively purchase a traditional term for $530/year and 30-pay a $64,322 no-lapse UL for only $544/year.  Two separate policies actually represent a savings of $26 in this scenario.  But is your client going to do that?  If they will, that’s great, you just used the ROP concept to sell a permanent plan in addition to the term you were going to sell anyway.  Your client is closer to having the proper coverage for their needs and you made more money.  Cha-ching!  But how many of your clients are actually going to do that?  They may not see the need for permanent coverage.  When money gets tight, which policy is going to go?  What if they miss a premium payment on the no-cash no-lapse guarantee UL?  There are potential leaks in the two-policy plan.  People don’t always do what’s best for them, but what is perceived to be easiest.  The ROP option gives the client only one policy to deal with and an absolute guarantee their permanent plan will indeed be permanent.  They know from day one how much permanent coverage they will have and what the premium will be – zero.  Show your clients what’s behind door #3.  You can’t lose.