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Questions? Contact our Sales Teams at (949) 863-0700. Life Insurance - Option 1 / Annuities - Option 2 / LTC - Option 3 / DI - Option 4.

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OneAmerica Enhanced Asset Care đŸ©ș Tuesday, October 29

OneAmerica Enhanced Asset Care

Tuesday, October 29th – 11.00 AM to 11.30 AM PST

REGISTER NOW

Enhanced Asset Care is launching October 21!

For more than 35 years, the companies of OneAmerica Financial¼ have been a thought leader in the long-term care (LTC) protection industry. Solutions delivered with flexibility and care, Asset Care can help enable your clients to cover long-term care expenses if they need it — or leave a financial legacy to their loved ones if they don’t.

As the care needs of Americans continue to evolve, OneAmerica is pleased to announce that starting October 21, 2024, enhanced long-term care protection options will be available for Asset Care, including:

  1. Added benefits to support informal caregiving, independent caregiving and care received at home
  2. Simplified benefit period options to make tailoring a plan and designing coverage easier than ever before
  3. Improved value through enhanced pricing for many clients
  4. An increased benefit that provides direct physical, financial and emotional support for informal caregivers; and
  5. Expanded inflation protection options to help safeguard against rising costs of long-term care over time
    OneAmerica Financial is here with you every step of the way — providing support, empathy, and strategies to help ease burdens so families can focus on what matters most.

Register today to learn more about Enhanced Asset Care.

Questions? Contact the CPS LTC Team at (949) 863-0700 Option 3.

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3 Simple Steps To Generate More LTCi Leads

While educational seminars or direct mail campaigns are good lead generation tools, these campaigns can be costly and usually take time to yield considerable results.

So how can you build momentum and grow your Long-Term Care Insurance business without breaking the bank?

Follow these 3 simple steps:
  1. Identify price-sensitive consumers in your client/prospect database who are currently on the fence. While these leads may have grown cold, the introduction of an affordable price point could warm ‘em right up.
  2. Schedule a brief meeting with each of the prospects you’ve spoken with in the past, to discuss the type of plan that would meet their needs and budget concerns.
  3. Use tailored needs-based marketing and support. You stand a better chance of shortening your sales cycle and generating new business.
Make certain your clients have the right LTC plan in place to meet their needs.
 
Contact your LTCI Sales Rep for more information.
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$50M Key Person Disability Placement

Capital Management Firm Case Study
 
Client:
 
A Southern California based Asset Management & Investment firm managing a portfolio of $17 billion.
 
Situation:
 
The CEO wears many important hats—CEO, President, Chief Investment Officer, Market Strategist—as well as overseeing all the firm’s U.S. equity and hedge fund strategies. In the past 10 years, the firm’s assets under management have risen from $3.5 billion to $17 billion dollars, thus elevating the overall importance of the key person’s responsibilities.
 
Assessment:
 
Chief Investment Officers in the hedge fund universe are unique human capital assets. Investors invest in a fund based largely on performance, which is attributed to the CEO. In the event of a serious disability, cash would be needed to retrain key staff as well as manage the winding down of the fund if a permanent disability were to strike. With the obligation of succession planning resting on the shoulders of the Board of Directors, the Board saw a need to initiate additional coverage in the event the CEO was no longer able to perform his duties. The Board’s directive stipulated that an accelerated divestiture clause be built into their investment agreements, which would allow investors to accelerate the rate at which investors can pull their funds should the fund manager become incapacitated.
 
Solution:
 
A plan was designed for a $50 million key-person disability insurance policy, payable to the company in a lump sum after 12 months, should the CEO be unable to perform his duties.
 
Result:
 
With a reasonable level of key person disability insurance protection now in place, an additional succession planning strategy was created to manage the associated risks involved if the CIO were seriously disabled. A number of sub managers were also identified as critical, and additional protection was likewise sought for four additional investment managers.
 
To the Producer:
 
The premium on this case exceeds $200,000 annually plus taxes and fees. Please keep in mind, while it’s a great case and one we want to replicate often, many of the key person disability policies we write are your $2M/$5M/$10M placements, which are almost always cross-sold in conjunction with key person life insurance.
 
Have you identified an opportunity or two within your client base? Please contact your Disability Specialist for assistance, or with any questions you may have.
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The 10-Minute Insurance Analysis

Back in the old days kids would buy a comic book for 10 cents (5 cents if the cover had been removed for re-sale) and peruse the back pages for ads that peddled everything from x-ray glasses to work-out programs that promised to make you into a he-man in two weeks. Purchases were made by mail and paid for with cash, checks or stamps. Buyers were alerted to allow 4-6 weeks for delivery!
 
Not today. Now “graphic novels” cost around ten bucks and things kids need are purchased online with delivery assured almost the moment of the last key stroke. Comedian Steven Wright described the acceleration of the pace of life well when he said, “Last night I made some instant coffee in my microwave oven and it almost went backward in time.”

The insurance industry has responded to the fast pace to which a new generation of buyers has become accustomed with abbreviated and accelerated policy underwriting and issuing programs.

And now you can do the same in drawing conclusions with regard to determining financial need for coverage in less time and little financial information. Try this:
 
For most people, there is only one need.
 
If a client doesn’t have estate tax concerns, then the only insurance need he or she has is for income replacement protection. If a family is managing its affairs properly then maintaining its anticipated income level for the anticipated number of working years left will allow for maintaining the household and achievement of retirement goals.
 
Coverage for that need is easily calculated.
 
Simply take the client’s current earned income and multiple it by the number of working years that remain. In fact, because a death benefit is received income-tax free, use of after-tax income would still be adequate, but allow for a reduction in the amount of coverage sought.
 
Protection can be purchased economically.
 
Coverage is needed for a known period of time (i.e. estimated number of working years remaining). This is exactly when term insurance is needed. There is no reason to buy higher-priced permanent coverage. Beyond retirement clients may want to maintain some coverage for estate liquidity, but they can either apply for new permanent coverage or exercise the conversion privilege under the term policy.
 
The cost is guaranteed and can reduce over time.
 
Clients can “lock-in” the cost of their income replacement protection with guaranteed level term insurance for a period that covers the number of anticipated working years. As the number of working years reduces with time the death benefit on the policy can be easily reduced. But often the face amount is left level to accommodate for raises, bonuses, or inflation.
 
A two-policy proposal.
 
Don’t forget coverage on a spouse, especially if he or she is also a wage-earner. But even a stay-at-home spouse raising children should be considered for insurance in an amount that would allow for providing the services necessary to keep the household in its accustomed style and schedule of life.
 
This simplified sales process also allows for more profitable execution of a term sale which, given the lower premium size, is less cost effective for you in terms of commission revenue.
 
Groucho Marx once commented on the pace of life when he observed: “Time flies like an arrow. And fruit flies like an over-ripe banana!” I believe he would advise that to save time you call for help with your case-related tax and planning issues at 706-614-3796 or tom@cpsadvancedmarkets.com.
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Holiday Closure Notice

Please be advised that our office will be closed on Monday, October 14th, in observance of the holiday.  We will resume normal business hours on Tuesday, October 15th.

You can visit our website at CPS Insurance Services for our electronic application platforms, application paperwork, policy service forms, quoting software, and product information.

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Can You Get A Sweet Deal For Challenging Cases?

Diabetes, there’s no way to candy-coat it – this all too common yet serious disease can present some challenges in life underwriting.

An estimated 1.7 million Americans are diagnosed with diabetes each year. Complications can include heart attack, stroke, cardiovascular and kidney diseases.

The good news is diabetes can be well managed with proper diet, exercise and medication and in turn helps to reduce the chances of developing complications.
 
There are several factors that underwriters look at when reviewing diabetes cases.
 
These include the type of diabetes (Type 1 or Type 2), the current age of the client, age at time of diagnosis, A1c levels (average blood sugar), treatment and any diabetic complications. Type 2 diabetes is the more common form in which the body is resistant to insulin. Ratings are generally more favorable for Type 2 than they are for Type 1.
 
Some top carriers have programs that could be the icing on the cake to getting the best possible offers for your diabetic clients.
 
Take a look at these examples:
  • Type 2 Diabetes: 75 year old male non smoker, diagnosed with 10 years ago, A1c levels have averaged 7.0 or better, 5’10 207 lbs, blood pressure is 143/90 and cholesterol is 270 with a cholesterol ratio of 6.0 – PREFERRED rating!
  • Type 2 Diabetes: Age 50 and older with excellent diabetic control, treated with diet and oral medication only, no complications – STANDARD PLUS is possible!
  • Type 1 Diabetes: Over age 50 with excellent control and no complications – TABLE B is possible!
Our Underwriting Team is ready to help get you the sweet deals you need in order to get your impaired risk cases placed – contact us today.
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Honoring The Last Wish: The Realities Of LTCi

“What’s your plan?”
 
That’s the question we encourage agents to ask their clients – because when there isn’t one, the consequences can be heartbreaking.
 
The New York Times article referenced below addresses the realities of what can happen when there is not a plan in place – through the tragic struggles involved in trying to honor a man’s wish to die at home.
 
It documents the various requirements of the healthcare system, including Medicare and Medicaid, that can make it nearly impossible to get in-home care.

When you read the story of Joseph Andrey, think about the impact you can have on someone’s dignity of life.

You have the opportunity to make sure this does not happen to any of your clients.
 
Access the New York Times Article: “Fighting To Honor a Father’s Last Wish: To Die at Home” here.
 
A comprehensive long-term care insurance policy will cover home care, adult day care, hospice, as well as, assisted living and nursing home. It also provides the insured with the dignity and independence to choose where they get their care.
 
Please contact your LTC Specialist to discuss how we can help you make a difference in your client’s lives – to design a plan that is both affordable and the best solution for your clients’ needs.
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Think Pink #BreastCancerAwarenessMonth

Think Pink. Think Compassion. Think Care. Think Ahead.
 
October is Breast Cancer Awareness Month. Agents and brokers, reach out and talk with your clients about what they can do today to make things easier should the unexpected happen.
 

While the chances of surviving a critical illness such as cancer, heart attack, or stroke are greater than ever, living with the condition can create severe financial hardships for many of our clients.

 
Traditional health insurance plans cover medical expenses, but costs such as insurance deductibles, child care, travel to and from treatment facilities, and short term home health care must often be paid out of pocket by the patient.
 
A real life story:
 
I recently spoke with a broker in Maryland who was diagnosed with Breast Cancer. She had the tumor removed successfully by a full mastectomy and had just finished up a bout of radiation and chemotherapy. But although she was feeling better, she was unable to work full time and the treatment affected her finances dramatically – business, household, and medical expenses continued to build up.
 
It’s stories like these that remind us just how invaluable a Critical Illness Policy can be.
 
Critical Illness Insurance pays a tax free lump sum payment on diagnosis of any one of a list of serious illnesses – including cancer, heart attacks, or stroke.
 
And since claims statistics suggest we are five times more likely to suffer from one of these than we are to die before we reach age 65, you can think of it as putting a client’s premium dollars in a safety deposit box.
 
If the client is diagnosed with one of the 12 covered illnesses the policy will pay the face value. If they die of one of the covered illnesses the policy will pay the face value to their beneficiary. If they die of any other reason, 100% of all premium paid will be returned to the beneficiary as tax free death benefit.
 
And there are plans to fit any budget. A Female, age 45, with $50,000 in lifetime coverage, can get coverage for only $57.46 a month. In addition to the lifetime version of the product, there is a choice of 10, 15, 20, & 30-year coverage periods.
 
Contact us today at for more information.
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All I Really Need To Know I Learned In Kindergarten

In 1989 author Robert Fulghum wrote his book which was described as, “Essays on life that will resonate deeply as readers discover how universal insights can be found in ordinary events.”  Since then, it has sold over seven million copies and is still worth a gander.

On another matter, the door to the biggest planning opportunity for your high-net-worth clients is closing and will slam shut on January 1, 2026.

But the good news is that all you really need to know to get them started on taking advantage of the current high estate and gift tax lifetime exemptions isn’t from your early school years but is easily and clearly available in one place: the CPS marketing piece, Death & Taxes; A Modest Primer.

Click HERE to download Death & Taxes – A Modest Primer

The Primer is usable and distributable in its current form; however, a customizable version is available upon request for agent use to promote to a particular agency or advisor firm.

Look it over and contact Tom Virkler, JD, CPS Director of Advanced Markets, at 706-614-3796 or tom@cpsadvancedmarkets.com with planning questions or assistance in its use. 

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Buy-Sell Agreements: The Importance Of Transition Planning

The 24-year old actor James Dean was the iconic Rebel Without a Cause, the image of teenage angst, who already had three blockbuster movies under his belt before a misplaced 1950 Ford Tudor blocked the intersection on US Route 466 that would serve as a premature end to the meteoric rise of the young star. It is reported that “Humphrey Bogart, who also knew a thing or two about image making, once said: ‘Dean died at just the right time. He left behind a legend. If he had lived, he’d never have been able to live up to his publicity.’” Sometimes in the entertainment world death is a good career move.
 
And we tend to view buy-sell agreements the same way. The best “move” the participants can make in triggering its fulfillment is for one of the participants to die.
 
Fund the event with life insurance that provides tax-free dollars that are used to purchase the inherited interest from the estate (with a step-up in basis, no less) and everyone goes happily on their way to a new and more cash-flushed existence.

Consequently the death of an owner is the contingency on which we focus too exclusively when planning.

The fact is that a business owner usually doesn’t die. They often leave the business for one reason or another that initiates a buy-out that usually takes the form of a down payment (maybe) and an installment sale for an agreed number of years at an agreed interest rate.
 
Even then life insurance is important.
 
Consider two instances:
  1. The remaining owners buy out a departing partner under an agreement funded with life insurance. The coverage on the departing partner can be kept in force to provide remaining owners funds to pay-off the loan balance should the seller die during its term. It also relieves the departing partner of any concern whether or not the balance will be paid to his family should he die. This arrangement may be cleaner if the policy is transferred back to the insured and a collateral assignment is given in the amount of the loan balance. If so, tax issues and premium-payment arrangements would need to be ironed out.
  2. A younger key person buys out a retiring owner-employer. The retiring seller wants to be sure of payment in the event of the death of the key person-buyer during the term of the loan. Carriers do not recognize a creditor’s insurable interest in a debtor, so they won’t allow the seller to purchase coverage on the borrower. However, the borrower can buy coverage, justifying it as personal insurance, and give a collateral assignment for the balance and term of the loan.
We recently assisted in a case similar to situation #2. We advised with regard to structuring the personally-owned coverage on the purchaser. We advised concerning the drafting of the collateral assignment. We laid a good predicate with the carrier to assure they understood the case – and then the selling owner placed the business through another agent and, consequently, another general agency. As my Mother used to say, “No good deed goes unpunished.” I say simply, “A pox on his house!”
 
Every business you represent should have in place an updated documented transition plan. If one doesn’t, then tell the owners they go to bed every night unsure of who they will be in business with the next morning! Then call us to assist you in all matters of their buy-sell planning and funding. Remember, we will get on the phone with you and talk directly to both your clients and their advisors if you think it beneficial.

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