Long Term Care and Disability Insurance

Are Your Clients Prepared For Long Term Care?

Presented by Leonard Berthelsen It has been reported in many articles and news features that Americans are just not prepared for the issue of long term care in the later cycle of their life. Are you? Are your clients? By most accounts most of us fall into the unprepared category. Baby boomers have heard for 10 + years that it is coming, and it could happen to them. Did they prepare? Well let’s look at some of the data that may surprise you. Most baby boomers have done a poor job of saving for their eventual retirement. (34% of surveyed baby boomers felt they had saved enough to comfortably retire). In another survey it was revealed that 57% of those reaching age 65 would continue to work in order to live their achieved lifestyle. Not by choice, but by necessity. The American Association for Long Term Care reports that although insurance for long term care services continues to be sold, only about 10% of older Americans have purchased the coverage. Then those same Americans reported that if long term care needs arose, 53% of them would hire a caregiver or move in with a family member. (Provider magazine, April 2016) We are probably not going to achieve critical mass with long term care insurance products without some form of government involvement or mandate. This is a high risk business for most insurance carriers and as we have seen in the past, the risk was too great for many of them, while others significantly scaled back the benefits they offer in order to manage the risk. So it really all comes back to who is going to pay for this. Personal wealth, family, government…your choice! I think most people would want the choices afforded when paying for it themselves. So let’s talk to them about some of the choices. Yes, long term care insurance is an obvious solution but many simply can’t afford the premiums, can’t medically qualify or simply have an issue with long term care specific coverage. Then why are we not talking about the alternatives available? Life Insurance with access to long term care benefits prior to death, Annuities with access to additional dollars for long term care services, Short term care plans and Recovery Care products. It doesn’t have to be all or nothing when it comes to protection for long term care needs. The next client you sit down with, ask if they are prepared for what many Americans are finding out. We are living longer, with developed health issues that make long term care needs almost inevitable. It’s time for us to make sure our clients know all the options available to them. Their financial future and your livelihood depend on it.
Life Insurance

Turn Your Clients’ “Lazy Money” Into Life Sales

Presented by Gary Peterson Have you heard about the Smart Money Concept? If you have clients that are planning on leaving assets to their family, or have money set aside for an emergency, this may offer a safe way for them to pursue their goals. Permanent life insurance offers four key benefits:   ·  Income tax-free death benefit to beneficiaries ·  Access to cash value for unexpected or immediate needs ·  Access to the death benefit for living needs ·  Competitive returns on death benefit over life expectancy and/or cash surrender value With the Smart Money program, there are no surrender charges and penalty-free withdrawals (talk to your Life Marketer to ensure your case has the necessary riders for the Smart Money sale). I have attached information for you to review as well as an illustration of the potential this program may offer to your clients. Give me, Gary Peterson, a call at 800-397-9999 to discuss. Smart Money Marketing Guide Smart Money Agent Worksheet Smart Money Tip Sheet Smart Money Valued Client Sample Illustration
Life Insurance

Reduce Retirement Risk

Presented by Brian Leising “I’m too busy building wealth for my clients, why would I integrate permanent life insurance into my financial planning practice?”

Sales expert Jeffrey Gitomer says “the fear of loss is greater than the desire to gain.” Think about it, how many calls do you get from concerned clients when the stock market is going up? How many do you get when it is crashing? In the retirement planning process, we usually focus on how much money our clients can accumulate in order to retire when they want with the lifestyle they want. Risk mitigation is handled through asset allocation and dollar-cost averaging. We want our clients to make enough money to be happy without losing more than they can stomach along the way.

What about the risks our clients face during their retirement years? What could erode a well-crafted retirement plan when the income is needed? The risk of stock market declines still exists but clients also face future taxes, the high costs of health care in retirement, social security considerations and the risk of simply outliving the plan YOU created.

Adding permanent life insurance into your clients’ portfolio can reduce their risk in each area.

Want to learn more? Ask about my Retirement Risk sales series. I can start sending you the 7-part series today!

[You don’t want to miss Retirement Risk #5, your clients’ most costly risk!]

Life Insurance

Universal Life Beats Term!

Presented by Brian Leising For those who attended the Financial Brokerage 2015 Sales Summit (and those who couldn’t make it), two of the most popular sales ideas proved that Universal Life Insurance could cost your clients less money than Term Life Insurance!  Here are two scenarios from Prudential and Protective Life: Prudential UL Beats Term– This works for clients who have ample cash flow.  The example is attached.  A male age 63 could purchase a 20 year term for $9715/year, paying a total of $194,300 over 20 years.  You could save him $33,132 by selling an 8-pay UL for $20,146/year (total outlay $161,168).  If the annual premium is too high, you could drop it down to a 12-pay for $14,410.  This saves the client $21,380 for a total outlay of $172,920.  In all scenarios, the client has $1,000,000 of death benefit for 20 years.  With the UL, he saves money and has the option to continue coverage by resuming premium payments.  He would be too old to convert to a permanent plan at age 83.  By the way, the commissionable target premium on the UL is $19,910 versus the $9715 for the 20 year term.  Do you want to overpay for term with no options or save money and maintain your options with a UL? Protective Renting (term) vs. Owning (UL) – Owning usually costs less than renting over time and life insurance is no exception.  Our example was a 45 year old male preferred non-smoker purchasing a $250,000 lump-sum death benefit with an Income Provider Rider paying an additional $60,000/year for 10 years.  If he purchases a 20 year term at age 45 and a 30 year guarantee UL at age 65 his total outlay will be $404,494 by age 95.  If he instead purchased a UL with an age 95 guarantee, he would only pay $221,400.50 over the same time period.  That’s a 54% savings!!!  What could your clients do with an extra $183,093.50? Pru UL beats term Protective UL beats term
  Term Universal Life
Age 45 annual premium $938.21 $4428.01
Age 65 annual premium $12,857.60 $4428.01
Age 95 total paid $404,494 $221,400.50
 
Life Insurance

Charitable Giving

Presented by Jim Linn They may not be Rockefeller, Gates or Buffett, but they can still make a difference.  How many of your clients are living on a fixed income?  How many are currently contributing to a charitable organization on a weekly, monthly or annual basis?  Why do they contribute week after week, month after month, year after year?  The answer:  They have a deep seeded care or compassion about the organization and want to continue to see it exist, now and into the future.   What if you had a machine you could give them that would multiply their giving by 5 or 10 times without contributing anything additional?  You do – it’s called Life Insurance.  Example:  Female Age 65 Non Tobacco                       Standard Health Rating                       Contributing $50/month to a charity  For the same monthly amount she could purchase a $10,000 simplified issue whole life policy with a level premium and guaranteed death benefit.  It would take 16.6 years at their current contribution level to equal $10,000.  Most policies offer a reduced paid up option should they not be able to afford the monthly amount, but would like to still leave something to their charity.    This is just one example of how your clients, on a fixed income, can make a big impact to their charity.  More advanced charitable giving strategies to follow.