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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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Thank You For A Remarkable Year

As the year winds down, we want to pause and say thank you. Your trust and partnership have meant a lot to our team, and we’re grateful for the progress we’ve made together—both the big wins and the everyday work that moved things forward.
Wishing you a peaceful holiday season.
To give our team time to enjoy the holiday, our office will be closed on Wednesday, December 24th, and Thursday, December 25th. We’ll reopen on Friday, December 26th.
 
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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Why Cholesterol Isn’t Half Bad: Underwriting Successes

It may surprise you to know that cholesterol itself isn’t bad. Cholesterol is one of the many substances created and used by our bodies to keep us healthy. Some of the cholesterol we need is produced naturally while some of it comes from what we eat.
 
There are two types of cholesterol: HDL, the “good” cholesterol, and LDL, the “bad” cholesterol. A healthy level of HDL helps protect against heart disease and stroke.
 
The total cholesterol-to-HDL ratio (chol/HDL ratio) is also an indicator in determining an individual’s risk of developing heart disease. This ratio is obtained by dividing the total cholesterol value by the value of the HDL cholesterol. Healthy, higher levels of HDL – the “good” cholesterol – helps to drive down the ratio. This is a good thing! Low ratios indicate a lower risk and, thus, are more desirable.

Some carriers no longer look at total cholesterol in assessing risk, but reviews only the cholesterol/HDL ratio instead.

Now clients with high total cholesterol but lower, favorable ratios can still qualify for best rates.
 
Consider these examples:

Case #1

  • Male client, age 45, NS
  • Seeking $2 mil of Term, Cholesterol on exam was 298 with a Chol/HDL ratio of 5.0
  • Does not take any medication
Underwriting outcome: PREFERRED BEST!
 
Case #2
  • Female client, age 60, NS
  • Seeking $1 mil of UL, Cholesterol on exam was 275 with a Chol/HDL ratio of 6.0
  • Takes a prescribed cholesterol medication
Underwriting outcome: PREFERRED!
 
Case #3
  • Male client, age 52, NS
  • Seeking $500k of Term, Cholesterol on exam was 260 with a Chol/HDL ratio of 7.0
  • Takes a prescribed cholesterol medication
Underwriting outcome: STANDARD PLUS!
 
*Total cholesterol cannot exceed 299
 
We also have other top rated carriers who use only cholesterol/HDL ratios in their underwriting criteria.
 
Contact our Underwriting Team today for more information and let us help you boost your sales this quarter!
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How LTC Insurance Can Lower Your Clients’ Tax Bill

How do you get people to sit up and take notice? Talk taxes. Tell them you have a way to help them reduce their state and federal tax bill.

A Long-Term Care Insurance (LTCi) policy has the potential to help people lower the amount they pay in taxes.

And at the same time, LTCi provides valuable insurance coverage that can help them remain in their home, protect their retirement nest egg and ensure they won’t have to rely on their kids to take care of them.
 
LTCi Premium May Be Tax Deductible
 
Each year, the federal government sets guidelines for tax deductibility. Individual policyholders may be able to deduct a portion of the premium paid for a tax-qualified LTCi policy. This is called eligible premium.
 
Business owners who use business dollars to purchase LTCi can also experience significant tax savings based on the tax structure of the business:
 
  • Self employed business owners may deduct eligible premium paid for the owner, spouse and dependents. They also may deduct the total premium or actual premium paid for employees.
  • Owner/employees of C Corporations may deduct actual premium for the owner/employee, spouse, dependents and employees.
Policy Benefits May Be Tax Free
 
Benefits received under a tax-qualified LTCi policy are intended to be tax-free as long as they do not exceed the greater of actual qualified LTC daily expenses or the IRS’ per day limitation.
 
Out-of-Pocket LTC Expenses May Be Tax Deductible
 
Generally any LTC expenses the policyholder pays out-of-pocket may be claimed as a medical deduction on a federal income tax return. The only exception is payment for home care provided by a family member who is not a licensed health care professional.
 
Some States Also Offer Tax Deductions
 
Currently a number of states offer tax deductions and/or credits for people who purchase qualified LTC Insurance policies. And these state deductions and credits are in addition to those offered by the federal government.
 
There’s No Better Time to Talk Taxes
 
Everyone is looking for ways to save, which is why now is a good time to talk to prospective clients about the tax advantages of purchasing LTCi. They’re sure to be more receptive when they learn that purchasing the coverage they know they need also can help them reduce their tax bill.
 
For more information, contact your LTC Specialist today.
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Permanent Total Disability Coverage For MLB Player

During the months of December, January, and February, we typically see the bulk of MLB athletes purchase disability coverage, so we thought it fitting to share a case study of a super star baseball player.
 
The Outfielder / Designated Hitter was in his last year of his current contract, approaching free agency, and projected to sign a five-year $105 million contract. The advisor on the case was challenged with securing an adequate amount of permanent total disability to safe-guard the player against a career-ending injury or illness.
 
The premium was roughly $250,000 plus taxes and fees.
 
Client
 
A professional baseball outfielder and designated hitter on the cusp of signing a multi-million-dollar contract.
 
Situation
 
The young and healthy MLB super-star was in his last year of his current contract, approaching free agency, and projected to sign a five-year $105 million contract. The player saw the need to protect his high performing status should he become significantly injured or sick prior to signing his next big contract.
 
Assessment
 
The advisor, working with the player’s agent and financial advisor, was challenged with securing an adequate amount of permanent total disability. The permanent total disability coverage would protect the player in case of a career-ending injury or illness.
 
Solution
 
A $25 million permanent total disability policy designed to pay a lump sum.
 
Result
 
The advisor, agent, financial advisor and player were all thrilled to have obtained a comprehensive policy. With the policy in place, the player could focus on playing the sport he loves knowing that he was protected against a career-ending injury or illness.
 
If you’re currently working with a high-income earner ($500k+ annually) who is an all-star in their own field, it is very likely they have exceptional income exposures.
 
Please feel welcome to share this case study with your centers of influence and baseball fans. Contact your Disability Insurance Specialist for assistance today.
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In A Falling Annuity Rate Environment, Now Is The Time To Act

After the Fed Cut, securing today’s annuity rates is essential. The Fed’s recent 25 bps cut is a clear signal that the high-rate window is tightening.

We don’t know when we’ll see rates at these levels again, which makes acting now especially important.

Lock In Today’s MYGA Rates

We are still seeing MYGA rates above 5.8%, but these will adjust as carriers reprice. MYGAs allow clients to:

  • Lock in current multi-year guaranteed rates
  • Protect against future reductions
  • Maintain steady, predictable returns

Securing these rates now preserves today’s stronger guarantees.

FIAs for Protection With Upside Potential

Several carriers currently offer S&P cap rates over 10%, creating strong crediting opportunities while maintaining full protection from market losses. FIAs provide:

  • Downside protection
  • Index-based growth potential
  • Long-term accumulation and income options
Why Act Now

With rates moving lower, clients need solutions that offer certainty and protection. MYGAs lock in today’s rates; FIAs safeguard principal while offering controlled upside potential.

Contact an annuity consultant today to secure security and growth for your clients.

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The Most Important Business Asset May Be At Risk!

Business owners regularly protect against the loss of their company’s buildings, equipment, and inventory. They even insure against intangible risks like liability.

But what about their most valuable asset: the key employers who keep the company running profitably, who monitor and keep pace with the industry, and who service and grow the customer base?

Protecting against the financial hardship of losing an executive due to death or disability can be accomplished very simply by insuring the employee. 

Key person planning involves:
  • Obtaining business-owned life and disability coverage on those in important positions. The insurance provides tax-free benefits to help through the transition time to recruit and train new executives.
  • Key person planning can also involve placement of personal coverage to ensure a key person’s family is protected against the loss.
  • The process also opens the discussion to other business planning needs requiring insurance coverage, such as business transition planning, or selective fringe benefits to keep important employees with the company.

We will enable you to be at the center of your business clients’ total risk management program by working with you, your client, and their advisors to design, implement, and administer the insurance solutions needed. Plus, you’ll get paid for writing the coverage that funds these programs.

Call today with questions or for assistance with any client or prospect who needs to protect against the loss of valuable personnel: Tom Virkler, JD, at 706-614-3796 or tom@cpsadvancedmarkets.com.

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Understanding Indexed UL – Positioning Your Client For Distributions

With several of our core carriers offering their own flavor of Indexed UL today, positioning your clients in the best possible light for retirement income can be a confusing and lengthy process.

It’s a full time job knowing all the moving parts for each Indexed UL product.

Understanding how the products work and how to sell them most effectively can be a confusing and lengthy process. We have spent many hours working with clients to help them better understand the product’s crediting and accumulation strategies.
 
However, the second part of educating a client regarding Indexed UL is, understanding the moving parts during the distribution from an IUL policy.
 
What is the best way to distribute the funds from the policy?
 
Most Indexed UL policies allow for either fixed or variable loans. The fixed loans have a stated interest rate locked in from the policy issue date on the outstanding loan amount so there is no question about the cost of the loan.
 
After a number of years, (typically 15) the IUL product will often provide for a “Wash Loan” or “Zero Cost Loan” where the amount being charged on the loan is the same as the interest being credited to the cash value.
 
The more commonly illustrated policy loan distribution is the “Indexed Loan” or “Preferred Loan”.
 
Using a positive arbitrage (the illustrated interest crediting rate for cash value is higher than the interest rate being charged on outstanding policy loans) allows an illustration to reflect a gain on the outstanding loan rather than a charge. Because this can make an illustration more attractive due to the higher cash value accumulations during the distribution phase, it is what many producers prefer to show to their clients.
 
It is imperative that producers understand how these loans features work and communicate to their clients that they also have the potential for a negative arbitrage which can create considerable interest due on outstanding policy loans.
 
Depending on the client’s risk tolerance and whether they plan on paying outstanding policy loan interest as it accrues or not, either policy loan option can be appropriate.
 
Be careful!
 
If you do not have a full understanding of how the clients approach their policy loans and simply elect the variable loans due for the potential of a positive arbitrage, you may be putting the client in a difficult position later if the loan interest charged exceeds the interest crediting rate for cash value and the amount available for distribution decreases well below your clients anticipated income amount.
 
Producers selling IUL products and highlighting the ability to generate an income stream from the policy should have a thorough understanding of the loan provisions and be able to help their clients to better understand which feature is most appropriate.
 
Take the time to refer to the product guide you are illustrating to see what the variable loan interest rates are tied to. What are the Cap rates for Variable loans? What is the Fixed Loan rate and is it Participating? This can be valuable information to share with your client when illustrating Indexed UL products with Distributions.
 
For more information, contact your Life Insurance Specialist today.
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Score With Life Insurance Underwriting Niches

Take a look at some surprising possibilities that can help you win a sale for clients with health impairments.
 
Preferred Plus MAY be available even with the following conditions:
  • Anxiety/Depression/Mood Disorder – One episode, duration of less than one year, recovered, no current medication
  • Asthma – Mild exercise induced or mild seasonal asthma
  • Osteoporosis – With no complications
  • Some skin cancers – Basal cell, superficial squamous cell carcinoma or single atypical nevus or dysplastic nevus (mole) with no family history of melanoma; Must have well-documented dermatology follow-up
Preferred MAY be available even with the following conditions:
  • Anxiety/Depression/Mood Disorder – Current and only on one drug; Well-controlled
  • Epilepsy – No seizures for more than 5 years; Not taking any medication
  • Moles/Nevi – Up to 3 atypical or dysplastic nevi (moles) with no history of melanoma or family history of melanoma and favorable dermatology follow-up
Contact the Life Underwriting team for more details and soon win the fanfare of your clients.
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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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Simplified Underwriting That Your DI Cases Need

The Simplified Underwriting Program makes it quick and easy for advisors to get Disability Income cases issued more effectively – fewer underwriting requirements will expedite your case.

No exam, no blood, no specimen, and no tax returns required.*

After the basic application has been submitted, your client simply completes a 15 minute telephone interview or completes the Online Health Questionnaire and the policy can be issued within 48 hours.
 
As one of the nation’s leading Disability Income Protection marketers, we now make available a total of $25,000 of monthly benefit for your Business Owner clients on a simplified underwriting basis.
 
The policy is non-cancellable, guaranteed renewable to age 65, and issued with a top-rated domestic insurance carrier.
 
Clients age 50 and under can now purchase $15,000 of monthly Business Overhead Expense (BOE) coverage and include an additional $10,000 of monthly individual protection for a total of $25,000 of monthly benefit. Multi-Life Issue to age 64. (3+ Lives)
 
The Opportunity
 
Reach out to your business owner clients who may have an existing group LTD plan in place, or even those who have no plan at all. Typically I’ve found, group LTD plans all have a maximum benefit payable (or CAP) that can be below 60% of the business owner’s salary and the benefits are taxable.
 
This additional simplified coverage can make up the gap left by their group plan – and the BOE coverage will reimburse the business owner for his company’s fixed expenses, while he or she recovers from the illness or injury, and keep the business running.
 
Please contact your Disability Insurance Sales Specialist for marketing support, or to discuss DI sales strategies that fit your business and can increase your bottom line in 2024.
 
*tax returns required for Self-Employed

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