Life Insurance

SELL MORE INDEX UNIVERSAL LIFE BY ASKING FOR LESS…

Presented by Brian Leising   When presenting Index Universal Life (IUL), we usually position the product as an either/or decision.  You either place your retirement dollars in an IUL or continue placing them in your 401(k).  When it works, this all or nothing approach is great.  What happens when this approach fails? Do you think some people are afraid to place all their eggs in one basket?  Consider this: don’t ask for all their eggs, just a few.  Here are two ways you can position IUL as a retirement plan supplement. One way to position IUL as a retirement plan supplement requires knowledge of social security and tax planning.  The IUL becomes one of three components in a comprehensive retirement plan.  To make this work you need to understand two features of the social security program: 1) if a client receiving social security benefits also receives taxable income, their social security income may be taxable; 2) social security benefits increase if a person waits until age 70 to receive benefits.  If your client has sufficient resources, they can maximize their social security income and minimize taxes simultaneously.  Here are the steps to make this happen:
  • When the client retires, they should withdraw money from their qualified plan first. Reduce the fund as much as possible.
  • At age 70 the client begins social security payments.
  • If they still have money in their qualified plan after age 70, they will need to take required minimum distributions. For most people, RMD’s will be low enough to not affect the taxation of their social security benefits.   Of course, social security and RMD’s together may not provide enough funds for your client’s living expenses.
  • Now their IUL can help. The client can take tax-free loans from their policy with no effect on the taxation of their social security benefits.  If their qualified retirement plan was liquidated, they would pay no Federal income taxes for the rest of their life.
You do not have to fund the IUL as their sole retirement vehicle.  Use the IUL as a planning component along with their 401(k) and social security income.  By waiting, their IUL has more time to grow, their social security benefit has more time to grow, and your client enjoys greater net income due to lack of taxation. Look for part two next week.
Long Term Care and Disability Insurance

It’s time to break the ice on the topic…

Presented by Donna Ries Even a short time spent talking today with your clients can help them avoid years of dealing with the consequences of hasty, sporadic decisions later on. We all age and most people end up needing help in some shape or form. Discussing possible scenarios with your clients won’t make them happen. Actually helping your clients prepare for their extended care planning will mean less work, stress, worry and regret later on for them and their family. Addressing tough topics now will allow your clients to enjoy their time ahead. One way to start the conversation is by stating that most people expect to live a long life, right? Ask your clients if they have thought about the impact this may have on their spouse, children, family or friends and if they are concerned about being a burden to them. The care many people may require later in life are costs often paid out of pocket. Even substantial savings can quickly be spent for extended care. Some questions to consider are where your clients would like to live and who can they rely on for help. The people they consider for help may be caregivers that live miles away. The extra burden for the caregivers could result in consequences for them such as missed work, lost wages, and exhaustion that will ultimately not allow them to care for the family member in need. Is it realistic to expect a spouse to care for their loved one? It’s time to make a plan now for your client’s long term care needs. Ask your LTC marketer about how to discuss with your clients a plan for the possibility of needing extended care. Discuss such topics as: – Helping your clients pay for care in the setting they prefer. – Thinking of LTC as anti-nursing home insurance. – Avoiding the risk of depleting a lifetime of savings with Partnership protected LTC policies. – Gaining peace of mind when extended care decisions need to be made. – Continuing to benefit from the life your clients have planned.
Annuities

Part of the Plan

Presented by Richard Mangiameli When considering retirement income planning, life insurance and annuities should be part of the plan, because they may provide the most direct and efficient way to reach ones retirement goals.