Life Insurance

The Eight Elements of Extended Care Riders – Element…

Presented by Brian Leising Finding the right formula for each client Not all extended care riders on life insurance policies are created equally. Do you know the differences? Different combinations will appeal to different clients more than others. Here are eight of the major distinguishing features among insurance companies offering extended care riders. All include some combination of the eight elements. This allows you to find the right formula for each client.
Premium Payments Benefit Qualification Benefit Amount
Pf Payment Frequency Pa Payment Amount
Lg Lapse Guarantee Tc Tax Code Pm Payment Method
Wp Waiver of Premium Ep Elimination Period If Inflation
Element 3 – Waiver of Premium Most insurance companies waive premiums while the insured is on claim and qualifying for benefits under an extended care rider. However, some still require premiums to be paid and others waive only the premium for the extended care rider, not the base life insurance policy. If the premium is not waived, a client could continue to pay premiums from the same resource they have always used or redirect part of their extended care benefit to pay the premium. This could pose a problem if the cost of care greatly exceeds their policy benefit and they have to use their own funds. Most clients will expect their premiums to be waived upon filing a claim. Look for Element 4 – Tax Code and Benefit Qualification in April
Long Term Care and Disability Insurance

Major Premium Increases Projected for Part B Medicare in…

Presented by Leonard Berthelsen Several reports recently, including one from CSG Actuarial, have indicated that there is going to be a major shift in the financing of Medicare Part B in 2016. It is being reported that the Part B premium that Medicare recipients pay will increase from $104.90 per month to $159.30 per month. That is a 51% increase! The Part B deductible is projected to increase from $147 annually to $223. Again, a 51% increase! The big unknown here is whether the Medicare Supplement carriers will follow suit and increase premiums as well. Plan F Medicare supplements are projected to have claim costs of up to 8% higher in 2016 due to the increased Part B deductible. On the other hand, the Plan G Medicare supplement is anticipated to be premium neutral for the carriers as the deductible is paid by the Medicare enrollee. There has been no official report from Medicare or CMS about these reported increases but we have come to accept that those announcements are generally made late in the year prior to implementation. What does it mean to a producer that has the discussion with their clients about Medicare and supplemental coverage? Simply put, some real opportunities for you and your clients. If someone has a Plan F Medicare supplement and is insurable, there very well may be an opportunity for a discussion about a Plan G Medicare supplement. Carriers will undoubtedly tout the major differences between the G & F plans that they offer, and pricing certainly will be at the forefront. There could be an unusually large group of Medicare supplement clients looking at alternatives when these new rates go into effect. With Financial Brokerage rolling out our Medicare supplement line of carriers later this month, there will be some opportunities presented to you with these changes. We are offering a great carrier line up, competitive commissions, state of the art quoting-to-application electronic quote system and Shared Success credits all in helping you be successful in your practice.
Life Insurance

Back to the Future

Presented by Gary Peterson   Following is a concept that can generate life sales into the future.   When you sell a term plan to your clients, prepare them for the next sale by discussing their needs for permanent insurance.  One of our carriers offers Return of Premium on their Universal Life product in addition to a Chronic Illness rider.  Another carrier has the option to make the change from a Universal Life to an Index Universal Life.   The approach would be:
  • Sell the term
  • Prepare clients for conversion to a Universal Life in a few years
  • In 20 years, get refund of premium or exercise the Chronic Illness rider for Living Benefits (if desired)
OR
  • Change the Universal Life to an Index Universal Life to build potential supplemental retirement funds
Call me at 800-397-9999 for more details on these potential solutions for your clients.  Remember, don’t just sell for today!  
Life Insurance

Need a Home For Your Declined and High Risk…

Presented by Gary Peterson   Expand Your Impaired Risk Options with Graded Death Benefit Term and Whole Life! Graded Death Benefit 10 & 20 Year Term and Whole Life
  • Face Amounts up to $150,000
  • Issued Ages 20-75
  • No Medical Exam & No APS & No Tests
  • Accept/Reject Depends on Answers to the Application (Subject to MIB Check, Prescription Check and Height and Weight Chart)
  • Underwriting Decision at Time of Sale (note: some applications may require additional review)
  • Electronic Application & iPad Capability
  • M. Best Rated “A”
We have a carrier for you. Full product details included, including an easy-to-use premium calculator!  Contact me at 800-397-9999 for contracting and questions.
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? Not able to sell term and permanent coverage to every client every time?  Here’s another option to consider: Return of Premium (ROP) term.  How can ROP help?  At the end of the term the client receives cash, walks away and that’s the end of it, right?  Most carriers offering ROP actually give the clients three options.  The obvious option is to take the cash and run.  The client could also apply the cash to convert to whatever permanent plan the carrier makes available at the time, thereby reducing the required premiums to maintain the same face amount.  What people tend to forget is the third option.  The client can choose to use the ROP funds to purchase a reduced paid-up policy.  The policy is paid-up…guaranteed. Here’s an example from one company using a preferred non-smoking male age 35 for $500,000: The annual premium is $110.  After 30 years the person could choose a $64,322 paid-up policy.  He could alternatively purchase a traditional term for $530/year and 30-pay a $64,322 no-lapse UL for only $544/year.  Two separate policies actually represent a savings of $26 in this scenario.  But is your client going to do that?  If they will, that’s great, you just used the ROP concept to sell a permanent plan in addition to the term you were going to sell anyway.  Your client is closer to having the proper coverage for their needs and you made more money.  Cha-ching!  But how many of your clients are actually going to do that?  They may not see the need for permanent coverage.  When money gets tight, which policy is going to go?  What if they miss a premium payment on the no-cash no-lapse guarantee UL?  There are potential leaks in the two-policy plan.  People don’t always do what’s best for them, but what is perceived to be easiest.  The ROP option gives the client only one policy to deal with and an absolute guarantee their permanent plan will indeed be permanent.  They know from day one how much permanent coverage they will have and what the premium will be – zero.  Show your clients what’s behind door #3.  You can’t lose.