Life Insurance

The Income Stream Death Benefit – Part One

Presented by Brian Leising I’d like to help you close more life insurance sales by showing how an income stream death benefit can help your clients save money and better understand how their coverage works. We will explore the problem in part one, present a money-saving solution in part two and simplify everything in part three. The Problem How many people do you quote term life insurance for every year but never take action? Many of those people did not purchase life insurance from someone else. They are still uninsured. How can you get them back in your office? You may need to revise your approach. How do you determine how much coverage a person needs? What needs analysis system do you use? Many people do not purchase life insurance because they don’t see the need. Many of those with insurance have no idea why they purchased the amount they have. The amount was likely a random number they picked among many their agent presented. If an analysis was conducted, they may have been intimidated or confused by the large face amount presented. Many people do not understand how large a lump sum is actually needed to provide adequate income replacement.
Life Insurance

College Funding with Life Insurance – Part One

Presented by Brian Leising If you work in the college planning market, you are well aware of strategies to move assets or overfund permanent life insurance policies for tax-free cash.  What’s better than rearranging existing dollars into better funding vehicles?  How about FREE MONEY! One of our life insurance carriers actually offers college scholarships to children and grandchildren of policyholders. Here is a link with more details on Foresters competitive scholarship program. They specialize in low face amount non-med term and final expense whole life.  This would be a great addition to existing college planning and a great fit for families without the resources for larger college funding plans.
Long Term Care and Disability Insurance

Emphasizing Disability Income Awareness is more than just One…

Presented by Leonard Berthelsen May is designated as Disability Income Awareness month and much of the focus is given to presenting, selling and educating clients during the month.  Let’s take that sharp focus from May and extend it throughout the year. Your client’s need for protection is there throughout the year, not just in a one month ad campaign.  Sickness and accidents aren’t just confined to one month but are present all year long. Disability Income protection should be at the forefront of every discussion with our clients to talk about their exposure and how you can reduce the risk.  Why, because all the other “stuff” that we talk about, sell or convince a client to buy becomes secondary if they can’t afford to continue paying the premiums when they become disabled. We write many times in these blogs about theory and process but rarely about how the personal side of things affects our loved ones.  Let me share a quick story with you about one of those personal issues. A 37 year old man was having lunch with his 3 year old daughter at her daycare when he became flushed and dizzy.  Making it through the lunch he returned to his car with the air conditioner on to cool off.  A passer-by tapped on his car window to see if he was okay, he had passed out. This 37 year old man had just suffered a stroke.  The quick and smart thinking of a passer-by probably saved his life.  In intensive care, he was informed that most likely he had a small clot that entered his brain.  With medication and some intense physical and occupational therapy, he will gain full control of his arm once again.  Who would be concerned of this happening at this age?  We never know when, where or why, but disabilities happen all the time to all kinds of people. Having the right protection can and will make all the difference in the world.  Just make sure that your clients are protected. Oh, by the way, this 37 year old man is my son.  Yes, he did have Disability Income Protection!
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? We typically sell term life insurance to fill a temporary need, but over time needs change. The reasons for coverage change from debt payoff (mortgage) and employment income replacement to social security income replacement, health care expenses and wealth transfer. These are needs your clients will have between retirement and death. Compared to their younger selves (your original term clients), 20-30 years gave your clients not only age, but extra pounds and health problems that didn’t exist decades earlier. What do you do when a new fully underwritten permanent plan of life insurance is not an option? You look at conversion options. Most insurance companies allow policyholders to convert their term policy anytime during their initial level term period, up to around age 70, to any permanent plan they make available at the time of claim. Good news! Your client can get permanent coverage. Bad news! They are at the insurance company’s mercy as to what kind of plan is available. Many carriers limit the products available for conversion, usually omitting their most competitive plans, some offering pricy whole life or current assumption (no guarantees) Universal Life. Some carriers by current practice make all their current permanent plans available. Good for them. What will their current practice be in 20 years? Who will own the company then? Clients have no guarantee an insurance company will continue that practice and may be stuck with no guarantees or with high priced options. If you can sell your client a permanent and term plan from the start, you can solve this problem. We know that doesn’t work in every situation. Clients may not see the need for permanent coverage or the price may be too high. What else can you do? Check back next week for the answer in part two.