Skip to content
  • Contracting
  • Quotes
  • New Business
    • Case Status
    • iGO-e-app
    • Drop Ticket
    • Medicare Supplement New Business Submission
    • Forms
    • Secure File Sharing Service
    • Underwriting
      • Accelerated Underwriting Guide
      • Nailba Field Underwriting Guide
      • Underwriting Requirements
      • XRAE
  • Incentives
    • 2022 Incentive Trips
      • Sandals Emerald Bay
      • Oak Lake Lodge
    • 2021 Trips
    • Carrier Trips
      • Columbus Life – 2022 Palm Beach St Thomas
    • Account Summary
    • Shared Success
    • Cash In on Your Success
    • Standings – See Where You Rank
    • Agent Referral Bonus
  • Social Media
  • Services
    • Advanced Life Case-Design Specialist
    • Blog
    • Branding
    • Email Marketing & Newsletters
    • Website Hosting
  • Login
Many times when we think of the most common reasons why someone might purchase life insurance, we think of some of the major financial risks our clients face if they die before they retire. These common risks include lost income, the ability to pay off a mortgage and the ability to fund a college education for children. Typically because all of these risks prior to retirement are temporary, they are protected with term life insurance. As your client gets closer to retirement these risks are greatly reduced. With term life insurance your clients can typically purchase a large death benefit for pennies on the dollar, and they can choose not to continue coverage after the level term period expires. So as a life insurance agent or financial advisor, why would I ever recommend purchasing permanent life insurance to my clients? To answer that question you should consider another question first. Why do my clients need life insurance after they retire? There are several risks that clients face after they retire that are not as commonly discussed but can have a major impact on your client’s retirement plans. These include unknowns like the potential of increasing tax rates, stock market volatility, underestimating how much they’ll spend in retirement, lost social security income due to either the death of the spouse or changes to the program and many others that we could spend more time on. Today I want to highlight a particular risk that can have a devastating impact not only on your client’s financial situation, but on their children’s and grandchildren’s future as well. This is the risk of long term health care expenses that arise as our client’s age. Long term care is more expensive than most think and many will be responsible for covering their expenses. According to a 2017 AARP fact sheet, 52% of people turning 65 will need long term care services in their lifetime. Because these services cost several thousand dollars a month and can last for years, this is a risk that must be addressed. Life Insurance with living benefits is becoming more common as a way to protect against this risk. The flexibility of these policies make them a very attractive option for those worried about paying for expensive long term care insurance and never using it. These policies come in all shapes and sizes in terms of guarantees, how interest is credited, how to access the benefits, etc. So what should you recommend to your clients? Well we certainly have our favorites here at Financial Brokerage that we’d love to discuss with you, but I’ll share a brief hypothetical example using a product that’s currently on the market to highlight some features available that we favor. CASE STUDY • 45 year old male at preferred non-tobacco • $309.84 per month in premium for 20 years (paid up at age 65) • $250,000 face amount/ $5,000 per month true LTC benefit • At age 65     • Guaranteed option to surrender policy for return of 100% of premiums paid Or: • $92,855 of cash value • No lapse guarantee death benefit of $250,000/ $5,000 per month LTC coverage to age 85 • Cash value expected to grow and death benefit/ LTC coverage projected to run to age 120 With 1 policy you cover part of your client’s pre-retirement death benefit need; you protect against their health care expense need throughout retirement, and they also accumulate cash value in reserve to hedge against other unexpected financial risks in retirement.
— Since 1996 —
 
800-397-9999
17110 Marcy Street • Omaha, NE 68118
www.fbinc.wpengine.com
 
–
Underwriting with Andrea #6
Sales Idea Episode 63 – Quick Issue Success Story

Recent Posts

  • Increase to Face Amount Limit for PL Promise GUL as of September 21, 2020
  • Sales Idea – Prospecting in a Pandemic
  • COVID-19 Underwriting Opportunities
  • Sales Idea – What if healthcare was built into your retirement plan?
  • 20% More Coverage For The Same Price?

Archives

  • September 2020
  • August 2020
  • December 2019
  • November 2019
  • October 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012

Categories

  • Advertisement
  • Announcement
  • Annuities
  • Annuity
  • AUM
  • Brookstone Capital Management
  • Bulletins
  • DI
  • Disability
  • General
  • Incentive
  • Key Person Life Insurance
  • Life
  • Life Insurance
  • Long Term Care
  • Long Term Care and Disability Insurance
  • LTC
  • Medicare
  • Newsletter
  • Pension Planning
  • Product Change
  • Rate Change
  • RIA
  • Sales & Marketing
  • Sales Ideas
  • Technology
  • Training
  • Uncategorized
  • Webinar

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
Financial Brokerage logo
  • 402-697-9998
  • 800-397-9999
  • 17110 Marcy Street, Suite 100
  • Omaha, NE 68118
  • About Us
  • Privacy Policy
  • Blog
  • Change Password
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube
  • All rights reserved ©2020 Financial Brokerage, Inc.
  • For agent use only. Not for public distribution.
Theme by Colorlib Powered by WordPress