Long Term Care and Disability Insurance

The Time has Come for Some Frank Discussions with…

Presented by Leonard Berthelsen Over the last dozen or so years, the financial services industry has been focused on how well the baby-boom generation has prepared itself for retirement.  As it turns out, some have planned well, others not so well, and the remaining didn’t do anything.  I don’t think it is a generational issue, more so the result of our diverse backgrounds and beliefs that we have in America. As I was doing some research for this latest blog, it became abundantly clear to me that there may be a huge disconnect with the Gen Xers and Millennial generations when it comes to financial planning or even knowing what to expect with retirement.  As mentioned, one glaring issue is the number of people that have simply done nothing.  The Millennial generation consists of approximately 75 million adults between 18-34 years of age, and the Gen Xers represent about 41 million adults from age 34 to 54.  That is a combined total of 116 million adults, of which almost half have not had any meaningful conversations about retirement or how to save for it.  Are these going to be the “lost generations” for our industry? I certainly hope not, but our challenge lies ahead in connecting with these groups. A recent study revealed that 51% of Millennials were calculating their retirement based not on sound financial calculations, but rather, on what they called “an educated guess.” The Gen Xers didn’t respond any more favorably about this issue, with 55% of them saying that “they will somehow figure it out once they get there.”  Not real encouraging for the long term growth of our business. Is it too late for these two groups?  Of course not. There is still ample time to correct their misconceptions and get them on the right track to planning for retirement.  I like to use real life experiences in writing as it seems to hit home a little better. I have two sons that are Gen Xers and each has chosen very different paths in life.  Even though they are going through life on different paths, both have come to the same conclusion about saving for retirement.  My youngest son who is in our business took it to heart right away that he needed to plan for the future.  He is preparing for his future where he won’t be able to work or will want to stop working and needs to set aside funds for those circumstances.  He is on a good path, even though he has small children, college expenses and possibly weddings to pay for in the future.  He put a plan in place and has stuck with it. Not easy sometimes, but discipline won out. My oldest son, who became an educator, was never very interested in having discussions about their financial future or how they would get there.  I learned to not push too much with him about this issue as his take on things varies considerably from mine.  He recently changed careers and asked me to sit down with him and put a plan together for him to continue saving for their future.  I was amazed at what he had done on his own without any meaningful advice from me about saving for retirement.  I had always thought that this kind of “stuff” just wasn’t important to him.  Guess what, it is.  Different paths, but the end results come out close to the same for each of them. Sometimes it is the little off-the-cuff things we say that have the most meaning.  I did no formal push with either one of them about saving for retirement, but always made sure they knew what I was doing and why.  Sometimes I was more frank than other times, but they always got the message.  Maybe we have to do the same with our clients. Over time it might be the little frank things that we do or say that will make the difference. These are generations that have a much skewed view of Social Security and its health.  We need to make sure that they are getting the message, either formally or off-the-cuff.  Our industry’s future depends upon it.
Life Insurance

Six Questions for Six Life Insurance Sales to Seniors…

Presented by Brian Leising Do you have senior clients?  Did they purchase only one product from you?  Was it a Medicare supplement, annuity, long term care or final expense policy?  If you were able to uncover the need for one insurance product, could you uncover another?  What if you had six simple questions to ask your clients that would uncover additional sales? Do you need a good way to open up an estate planning conversation with a prospect you think may have a problem?  Maybe a business owner?  Why not ask, “What steps have you taken to minimize your taxable estate to your heirs?”  This is an easy way to lead into the conversation.  You are assuming they have already done some planning.  Most people have not, or if they have it was never completed.  Keep in mind with the higher exclusion amounts that went into effect recently, the Federal estate tax may not apply in as many situations as it did in the past.  Your state may impose its own state estate taxes at much lower thresholds. On top of that, income or capital gains taxes may also apply.  Make sure you are working with an attorney who specializes in estate planning to minimize your client’s taxable estate first.  If needed, life insurance can provide immediate funds to pay any remaining tax without liquidating assets. In part six I will discuss two opportunities that will open the door to your next generation of clients.
Life Insurance

The Value of Life Insurance

Presented by Gary Peterson No one anticipates the challenges they confront at a loved one’s death. Insurance planning ensures that the emotional struggles are not compounded by financial hardship.  At the time of death, while others are presenting condolences and bills to the beneficiaries, you will be giving them a check to assist them with their financial needs.  Be a hero to your client’s family. Ask the tough questions today.
Life Insurance

Six Questions for Six Life Insurance Sales to Seniors…

Presented by Brian Leising Do you have senior clients?  Did they purchase only one product from you?  Was it a Medicare supplement, annuity, long term care or final expense policy?  If you were able to uncover the need for one insurance product, could you uncover another?  What if you had six simple questions to ask your clients that would uncover additional sales? Let’s start with the first, most basic question: “What planning have you done for your funeral?”  Listen to your clients speak.  They may discuss their will, preferred cemetery, music to be played, what funeral home to use.  When they finish, follow up with “How will your family pay for all that?  Do they really want to pay full price?”  This conversation could lead to a fully underwritten life insurance sale, but don’t neglect basic final expense policies.  Some people don’t need anything more than a basic burial plan.  In lower income households, that may be the only sale possible.  Premiums are guaranteed to remain level and underwriting is simple and fast.  You should know whether your client qualifies for coverage before you walk out the door.  People still purchase pre-paid funerals from funeral homes, you can offer them greater leverage on their dollars. Next week I will review question number two, for use with people who already have life insurance policies in force.
Annuities

2015 Tax Season

Presented by David Corwin   Even though the tax season isn’t quite over for 2014, it’s still a great time to start planning for any tax situations that may arise for your clients.  This year has some changes of course, including tax rate schedules and forty or so other changes.  Adjusted Gross Income tax rates for 2015 are at the top of mind for most taxpayers.  Keep in mind that the Patient Protection and Affordable Care Act will increase many taxes on capital gains, income and other areas including, reducing tax deductions for high income earners and families.  See the new 2015 Tax Guide as a way to properly advise your clients in this year.