Life Insurance

The Income Stream Death Benefit – Part Two

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. What’s the solution?
  1. Conduct a needs analysis with everyone you see, discuss paying off debts and funeral expenses, funds for college and income replacement.
  2. Instead of a lump sum for their income replacement needs, use an income stream death benefit to clearly show how life insurance fulfills a client’s needs. Several insurance companies offer clients the exact income amount and time period they need to replace lost income. Better yet, clients receive a discount when choosing an income stream rather than purchasing a lump sum. For example, assuming a male age 35 receiving the best available rate class, $1,000,000 of 30 year term would cost $814 per year. If the need was actually to provide $50,000 per year for 20 years (still a $1,000,000 pay-out) the client could pay as little as $647.75 per year using an income stream death benefit option. That’s about a 20% savings in annual premiums amounting to a total of nearly $5000 over the life of the 30 year term policy.
Life Insurance

Badmouthing the Competition

Presented by Jim Linn When you throw dirt, you lose ground! We have all been faced with a client that was unhappy with a previous advisor or carrier and voiced their concern.  In trying to identify with the client you may have the urge to side with or even join in with your own two cents. Your “two cents” could cost you a lot more.  In a brief article on Lifehealthpro.com they address badmouthing the competition.  Click the link below for the short article:  http://www.lifehealthpro.com/2015/09/09/badmouthing-the-competition-is-a-losing-propositio?t=practice-management
Life Insurance

College Funding with Life Insurance – Part Two

Presented by Brian Leising How do you determine how much life insurance your client needs? Do you use a fact finder?  Does it include college expenses?  Would you even know where to begin calculating future college expenses?  Very often, we do a great job asking clients about fixed expenses such as their mortgage, funeral costs and credit cards, plus ongoing income needs.  What about the future cost of college for their children? Through Financial Brokerage, you have access to paper and electronic analysis tools to help your clients determine the current and future costs of college at public and private universities throughout the country.  Completing this part of a needs analysis should add $200,000 to each life insurance sale you make…per child.
Life Insurance

High Deductible Survival Plan – Part Two

Presented by Brian Leising In part one, I discussed the needs many people have for both money to pay high health insurance deductibles and life insurance coverage. What if a life insurance policy could provide a traditional death benefit and a living benefit that clients could use to cover their deductible? Such policies do exist. In fact, one major insurance company lists cancer, heart attack, stroke, major organ transplant, end stage renal failure, ALS, blindness, paralysis and loss of two or more limbs as qualifying conditions to accelerate part of the death benefit. How much money could they get from their life insurance policy if one of these things happened? Here is an example from that same insurance company estimating how much money a 40 year old male with a $500,000 death benefit might receive: Age at Claim                                 SEVERITY Minor             Moderate             Severe 50                           $93,273         $184,293            $315,259 60                           $72,065         $187,309            $349,915 70                           $1,000           $63,466              $298,004 The carrier will categorize the client’s condition at the time of claim as minor, moderate or severe based on how that condition affects their life expectancy. The more severe the condition, the more money they receive. Any funds paid to the client while living reduce the death benefit dollar for dollar. Your clients no longer have to wait until they die to benefit from their term life insurance policy. How much does something like this cost? Here’s an example: For a non-smoking, preferred plus male, age 40 seeking $500,000 on a 30 year term life, the lowest price is $54.50/month. Another company with a one-time living benefit option costs only 36 cents more. A third company offers a traditional term plan that comes within a couple of dollars, with their living benefit product running only slightly more at $66/month. If your client can afford the $54 product, do you think they could afford just $12 more? In part three, I will explain methods and tools you can use to market this new term life policy to your existing clients.