Presented by Deb Strong

Baby boomers are learning about the importance of securing guaranteed lifetime income, and with the help of their agents they are reaping the benefits of a secure retirement. As more and more boomers approach retirement age and obtain annuities to cover their basic expenses, this demand, coupled with increasing life expectancies can have a dramatic effect on payout rates for future purchasers.

Coming up in January of 2016, insurance carriers will be using 2014 Mortality tables, versus the 2000 Mortality tables. We will be seeing a 2.4 percent increase in life expectancy with a 65 yearold male.  And we will see a 2.8 percent increase in life expectancy with a 65 yearold female.  You may be asking yourself right now how this is going to affect insurance companies and ultimately, the consumer.  Because these updated mortality tables will be adjusted to properly reflect longer life spans, insurance companies may have no choice but to lower their payout rates.

The bottom line is, even though people may be asking themselves why they should buy an annuity in today’s low interest rate environment, I would challenge them by saying that today’s rates are not low, but instead the new rates.  Today’s rates could be the highest you see for  a very long time. They are a longevity credit play. 

We will more than likely, see payout rates drop in 2016; some insurance carriers may lower the rollup rates, others may adjust the factors used when turning on income or when annuitizing.  But, mark my words, we will see changes next year.  How are you equipped to handle this when your clients start asking you questions about their future income?  And certainly, you don’t want them to be caught off guard when they find out next year that they could have had a greater opportunity if their advisor would have told them in 2015.  There is no time like the present to help your clients lock in a good payout rate today!  Consider this concept: if you’ve had clients that are reluctant to get started, then have them start a contract, such as those offered through American Equity, with a deposit of $5,000 (or similar) today.  That locks them into current payout rates and allows them to make future deposits under the same rates!   

We can help find the right carrier and product to match their needs!

Are You Ready to Embrace the Future of Long Term Care Coverage?

Presented by Leonard Berthelsen

I usually try to stay away from being company specific or naming products in my writings, but sometimes you have to do it when something new comes along.

New generations of bold thinking are at the doors of LTC planning and design.

It really was only a matter of time before LTC carriers used creative thinking and a new fresh approach to product design to offer new insurance products to the marketplace.

John Hancock introduced Performance LTC™ to the industry in April and has already seen successes with this new approach.  “The boldest ideas of new generations are infused with creative thinking and fresh perspectives, while preserving the finest traditions of the past” is how Hancock is explaining their thinking with this new long term care solution for the agent and their clients.

Hancock’s press release states “Performance LTC™ offers a breakthrough design that will provide your clients with many of the features found in a traditional policy, while offering a more predictable customer experience. This new LTC insurance solution allows your clients to make informed decisions about their coverage so it can evolve over time to meet their financial needs and goals.”

Anything addressing the rising premium issue of late is welcome news. This is a good start.  While it may not be the solution to every issue affecting the buying decision consumers face in considering long term care coverage, it does address several key components.

A lower “buy in” point from the beginning along with modest, controlled adjustments over the life of the contract may just reduce some of the risk of heavy rate adjustments later.  The policyholder will have a larger stake in how the plan performs over time and that should be welcome news for producers and consumers who have shied away from LTC in recent years because of the uncertainty of the product.

Take a look at Hancock’s new product as I think this is a start of the creative thinking and fresh approach we’ve been looking for.

College Funding with Life Insurance – Part Two

Presented by Brian Leising

How do you determine how much life insurance your client needs? Do you use a fact finder?  Does it include college expenses?  Would you even know where to begin calculating future college expenses?  Very often, we do a great job asking clients about fixed expenses such as their mortgage, funeral costs and credit cards, plus ongoing income needs.  What about the future cost of college for their children?

Through Financial Brokerage, you have access to paper and electronic analysis tools to help your clients determine the current and future costs of college at public and private universities throughout the country.  Completing this part of a needs analysis should add $200,000 to each life insurance sale you make…per child.

Back to the Future

Presented by Gary Peterson


Following is a concept that can generate life sales into the future.   When you sell a term plan to your clients, prepare them for the next sale by discussing their needs for permanent insurance.  One of our carriers offers Return of Premium on their Universal Life product in addition to a Chronic Illness rider.  Another carrier has the option to make the change from a Universal Life to an Index Universal Life.   The approach would be:

  • Sell the term
  • Prepare clients for conversion to a Universal Life in a few years
  • In 20 years, get refund of premium or exercise the Chronic Illness rider for Living Benefits (if desired)


  • Change the Universal Life to an Index Universal Life to build potential supplemental retirement funds

Call me at 800-397-9999 for more details on these potential solutions for your clients.  Remember, don’t just sell for today!