Life Insurance

The Eight Elements of Extended Care Riders – Element…

Presented by Brian Leising The Eight Elements of Extended Care Riders 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 4 – Tax Code and Benefit Qualification Insurance companies file their extended care riders and provisions under one of two (or both) tax codes, 7702(T) or 101(g). What’s the difference? Only the riders filed under 7702(T) may use the words “long term care” to describe the rider. Since the 7702(T) riders are viewed as tax-qualified LTC polices that have been added to a life insurance contract, the LTC benefit in many cases will exceed the death benefit of the underlying policy. Chronic illness riders (101(g)) may only accelerate up to the actual death benefit amount. The difference of greater concern pertains to benefit qualification. With either tax code, benefit qualification depends upon the client losing physical and/or mental abilities. The insured can qualify for benefits by losing the ability to perform two of six activities of daily living (ADL’s) or severe cognitive impairment (such as Alzheimer’s or dementia). With chronic illness riders (101(g)) an additional requirement must be met: the condition must be deemed to be permanent. An insured may recover, but the expectation they will not triggers the chronic illness (101(g)) benefit. Look for Element 5 – Elimination Period in May.
Annuities

Where There’s a Problem – We Have a Solution

Presented by Deb Strong Do you have clients that are concerned with how they are going to pay for Long Term Care coverage?  If you do, you need to call your Sales Manager at Financial Brokerage at 800-397-9999.  We have many products that are protected by the Pension Protection Act, which means that structured properly, the long term care payments made to the client for their care are tax free!  One option is an annuity that also provides long-term care coverage, giving the client not only protection from the stock market, but also a leveraged pool of funds to use for care.  Nearly everyone buys insurance to cover their car and their home, as they should; own an asset and protect it.  So, think about this: A truly great financial plan can be put in place to grow assets with proper diversification, taxable and tax-free accounts, etc., but forgetting to put in place protection for those assets can be disastrous.  When one year of nursing home care can cost as much as $90,000, then how many years would it take to wipe out that well-crafted planning?  Don’t forget to discuss this fact with your clients and let us help you find the perfect product that transfers the risk of long-term care expenses where they belong . . . to the insurance carrier.
Life Insurance

Leverage idle assets to increase legacies

Presented by  Brian Leising You may have clients approaching age 70 concerned that taking required minimum distributions will increase their tax exposure. They may not need the extra income and want to minimize their tax risk. This strategy featuring life insurance can help them reduce their tax exposure and create wealth for the next generation. Your clients may also want to consider different strategies for utilizing surplus income from IRA distributions.
Annuities

Financial Surprises of Retirement Paychecks

Presented by Richard Mangiameli When we started working, one of the biggest surprises of our young adult life was the difference between our gross and net paycheck!  We were introduced to the world of Income Tax withholdings. Forty or so years later, we get the next biggest surprise – not having enough money to retire with!  Again, the difference between our gross and net retirement paycheck.  Retirees are concerned about their retirement income being under siege with expenses, mandatory medical spending, lifestyle and outliving their money.  This is an area where you, as an insurance professional, can protect your clients and help them with product solutions. A clear view of the current trends in the retirement landscape will take you a long way toward finding the product to provide the solution.  For example, the big focus today is the need for guaranteed income for life, without the fear of losing control.  With fewer company pension plans and increasing life expectancy, retirees face a growing gap between income they can count on and expenses they expect to face.  Fixed Index Annuities can offer predictability, no direct downside market risk, and the potential for guaranteed income for life – an attractive benefit to clients searching for ways to leverage assets and build a more stable future. After the 2008 market crash, many people found their financial foundation was not as sturdy as they once thought.  With the risk of longevity, medical expenses and inflation affecting retirement income calculation, many are looking for ways to supplement their income, accumulate assets and cover basic living expenses in the future.  The opportunity to have upside potential, with no downside risk, provides your clients with peace of mind for long-term financial security, asset accumulation and can provide guaranteed income for life. Fixed Index Annuities with an Income Rider can offer the “peace of mind” benefits that retirees are looking for today.  If you need to know more about how the Fixed Index Annuities with Income Riders work, call Richard Mangiameli, LUTCF, FSS, at 800-397-9999.
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.