Long Term Care and Disability Insurance

Why isn’t Disability Income insurance sold more?

Presented by Leonard Berthelsen   Ever stop and think for a minute what your life would be like if your paycheck stopped, your commission check wasn’t there or your renewals were reduced to a trickle? Why aren’t we asking our clients this question?  The most valuable asset that a person controls is their ability to earn an income.  How would our families be able to continue to be supported if the income just stopped? Now let’s look at it from a consumer perspective – additional premium, more insurance, what if I don’t use it.  I’m covered at work and my employer is paying the premium.  WOW, that is a lot of obstacles to overcome.  Maybe we look at Disability Income insurance as too complicated, premiums too expensive or that most people are covered at work. Well, most people aren’t covered at work as it has become common place to see employers not offer Disability Income insurance or reduce what they did have.  Only 2%-7% of working adults under age 55 have Disability Income insurance.  It’s only expensive if you make it expensive.  Return of Premium at set stages in your client’s life makes DI a better fit and more affordable. You can break Disability Income insurance down to a few basic elements that will allow you to talk and present comfortably to your clients; age, income, occupation and some basic health history.  The rest falls into place.  You will be surprised how receptive prospects and clients will be when you un-complicate and de-clutter DI coverage. On your next appointment, ask your client what they would do if their income suddenly stopped?  Give them the opportunity to protect that most valuable asset, their ability to bring home a paycheck.
Long Term Care and Disability Insurance

Protection for the stay-at-home spouse?

Presented by Donna Ries   Few carriers allow disability income insurance protection for the homemaker due to lack of income.  Another alternative to consider is a critical illness plan. In the case of a major event such as cancer, heart attack or stroke, a lump sum payment may help the family cope with such a situation.  To qualify for critical illness, there is typically limited income restrictions, limited occupational analysis and an easy solution to a huge potential financial burden on the family. The hidden cost of major health crisis is something we don’t give much thought to.  Transportation, housing and time off of work all become big issues if care is being received away from where a person lives.  Health insurance policies don’t pay for the non-medical cost of care. “Cancer, heart attacks and strokes happen at all ages and most people are not prepared for either the emotional or financial cost,” explains Jesse Slome, Executive Director of the Industry Trade Organization.  “Nearly two-thirds of U.S. bankruptcies are the result of medical expenses and 78 percent of those filing for bankruptcy had health insurance when they were first diagnosed.” A lump sum payment may be the answer to help the affected spouse to concentrate on recovery.  Your Financial Brokerage marketer is here to help you place more of this business.  Give us a call today at 800-397-9999 to discuss the plans available.
Annuities

Fixed Annuity Podcast

Fixed Annuity Podcast: FOCUS ON INCOME – Part One

Listen in to this podcast to learn about how the fixed annuity conversation can be tailored to focus on income. We will be sharing a conversation that has worked for many financial professionals. This podcast is the first in a two-part series.

Focus On Income – Part One

Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank of the FDIC. Guaranteed lifetime income available through annuitization of the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged. Please note that in order to provide a recommendation to a client about the liquidation of a securities product, including those within an IRA, 401(k) or other retirement plan, to purchase a fixed or variable annuity or for other similar purposes, you must hold the proper securities registration and be currently affiliated with a broker/dealer or registered investment adviser. If you are unsure whether or not the information you are providing to a client represents general guidance or a specific recommendation to liquidate a security, please contact the individual state securities department in the state(s) in which you conduct business.

Annuities are designed to meet long-term needs for retirement income. They provide guarantees against the loss of principal and credited interest, and the reassurance of a death benefit for beneficiaries. Please note that in order to provide a recommendation to a client about the transfer of funds from an investment product to a fixed insurance or annuity, you must hold the proper securities registration and be currently affiliated with a broker/dealer. If you are unsure whether or not the information you are providing to a client represents general guidance or a specific recommendation to liquidate a security, please contact the individual state securities department in the states in which you conduct business.

This information is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Encourage your clients to consult their tax advisor or attorney.
FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH CONSUMERS. © 2014 Partners Advantage Insurance Services, LLC.
 
   
Annuities

The Important Decision at Retirement

Presented by David Corwin Did you know that, at retirement, you might have to make a difficult decision that could negatively impact your future financial security and that of your spouse? At retirement, you will have to decide how your pension benefit will be paid out for the rest of your life: Should you elect to receive the maximum retirement check each month for as long as you live, with the condition that upon your death, your spouse gets nothing? OR Should you elect to receive a reduced retirement check each month, with the condition that upon your death, your spouse will continue to receive an income? Did You Know… * The decision you make will determine the amount of pension income you receive for the rest of your life? * This decision is generally irreversible? * In making this decision, many people unknowingly purchase the largest death benefit they will ever buy and one over which they have no control? If you are married, federal law requires that, in order to protect your spouse, you must elect a “joint and survivor” annuity payout option for your pension benefits. This guarantees that your surviving spouse will continue to receive at least one-half of your pension income. This concept is sound, except that you have to pay for a joint and survivor annuity payout option: * Your pension benefit is reduced for as long as you live. * If your spouse dies before you, your pension benefit cannot be restored to its unreduced amount. * All pension payments cease when both you and your spouse die. Let’s look at the results of the three most common pension benefit options, using a hypothetical example: Life Income Option: If you receive your pension benefit under the life income option, you receive the maximum lifetime pension payment. If you die first however, your surviving spouse receives nothing after your death. Joint and One-Half Survivor Option: If you elect the joint and one-half survivor option, you’ll receive a lower lifetime pension payment. On the other hand, if you die first, your surviving spouse will continue to receive a lifetime pension benefit equal to 50% of your pension benefit prior to your death. Joint and Equal Survivor Option: With the joint and equal survivor option, you’ll receive a significantly lower lifetime pension payment. Your surviving spouse, however, will continue to receive 100% of your pension benefit if you die first. In making this important decision, you should evaluate the risks associated with retirement income protection funded with life insurance: * Your income after retirement must be sufficient to ensure that the life insurance policy premiums can be paid and coverage stay in force for your lifetime. Otherwise, your spouse may be without sufficient income after your death. * If your pension plan provides cost-of-living adjustments, will upward adjustments in the amount of life insurance be needed to replace lost cost-of-living adjustments after your death? * Does your company pension plan continue health insurance benefits to a surviving spouse and, if so, will it do so if you elect the life income option?