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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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Wealth Transfer Strategy Using Deferred Annuities To Fund Life Insurance

Do you have clients that originally purchased a Deferred Annuity to find that they no longer need it for retirement income purposes? Often, these clients intend to “leave it for the kids.”

Although a Deferred Annuity is a great vehicle to accumulate funds for retirement, it is not an efficient vehicle to transfer wealth since it may be taxed twice at death.

How can your clients avoid this? By reducing or replacing the Annuity with more tax-efficient assets.
 
How It Works
 
Annuity Maximization is simply an asset repositioning strategy in which the Annuity is exchanged or converted to a Single Premium Immediate Annuity (SPIA). A SPIA provides an income stream for a chosen number of years based on a single deposit made to purchase the Annuity in addition to your client’s age and health status.
 
Your client may then make gifts of the after-tax income generated from the SPIA to an Irrevocable Life Insurance Trust (ILIT). The ILIT then has the funds to purchase a Life Insurance policy on your client’s life for an amount that replaces or exceeds the value of the Deferred Annuity, to benefit the heirs. The Life Insurance policy pays out the tax-free death benefit at the end of the client’s life.
 
You want to be sure to avoid taxation on your client’s Deferred Annuity as it can be taxed up to 70%. By converting the Deferred Annuity to a SPIA and then leveraging the SPIA income withdrawals to purchase Life Insurance, you’ve created a simple solution to increase the amount transferred to the heirs of your client.
 
For more information on this plan or any other Life Insurance sales ideas please contact your Life Sales Marketing Manager.
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Tactical Tuesday | Estate Planning For Foreign Nationals

Don’t miss the next webinar in the Advanced Sales Tactical Tuesdays series!

“Estate Planning for Foreign Nationals” 

Celebrate National Financial Education Month and learn how U.S. laws affect wealth planning for international families with U.S. ties.

Tuesday, July 28th, at 10.00 AM PST

REGISTER NOW

Partnering with CPAs is one of the most effective ways to generate new business by delivering insurance-based solutions that complement their tax and financial strategies. CPAs sit at the crossroads of tax, cash flow, retirement, and succession decisions—the exact moments when protection and accumulation solutions belong on the table.

When you learn together, you create tax‑smart strategies that drive real results.

About the series:
  • Clear, practical Advanced Sales content designed for real client conversations.
  • Co‑learning with your CPA partners—each session provides one CPE credit per attending CPA.
  • All webinars start at 10.00 am pst.
How this grows your business:
  • Warm introductions to ideal prospects through trusted CPA relationships.
  • Coordinated language that simplifies complex topics for clients.
  • Faster movement from advice to implementation.
Make it simple:
  • Invite a CPA to attend with you.
  • Register together for one session or the full series.
  • Schedule a 15‑minute debrief to align on next steps for shared clients.

Let’s turn tax‑smart planning into measurable insurance growth—together. Please call the CPS Life Sales Team at (949) 863-0700 Option 1 with any questions.

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A Healthy Lifestyle Will Give You Wellness Credits!

Wellness crediting programs can help give clients who maintain a healthy lifestyle the potential to be upgraded to a better underwriting offer and price.

For example, one program is open to:
  • All Ages
  • All Face Amounts
  • Most of their product line (some product exceptions apply)

An insured may be credited up to two classifications, including from Preferred to Preferred Plus. This crediting program can improve substandard ratings, too.

Some of the criteria includes:
  • BMI range of 22-29 (ages 18 and older)
  • Untreated blood pressure < 120/80
  • No incidents of CAD, diabetes or cancer in parents or siblings prior to age 60 years, or both parents live to age 75 or older
  • Normal routine colonoscopies, mammograms, pap smears, CBCs, skin checks in the last 3 years
  • Hemoglobin AIC readings 5.0 – 5.5 range in the last 12 months

Call the Underwriting Department to discuss your client’s health history and this program for the best possible outcome!

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Why You Need To Talk About LTCI

Most people envision themselves living a long life, investing and planning throughout their working years to create a financially secure future where they can enjoy spending time doing their favorite things.
 
As part of your client’s financial planning process, it’s important to understand the potential impact that needing long-term care may have on their assets, their family, and their future.

The reality is, as people start to live longer, the greater the likelihood is that your clients will require long-term care.

The costs associated with long-term care are significant.
 
While it can take decades to accumulate the assets they’ll need to retire comfortably, just a few years of paying for long-term care may threaten a lifetime of savings.
 
If you’ve ever been in a care-giving situation, you understand the physical and emotional toll it can take. While providing care to loved ones is an act of compassion, placing these burdens on spouses, children and other family members can create a significant emotional and physical strain, and is something that many people would like to avoid.
 
Don’t wait to address your client’s long-term care needs.
 
Incorporating Long-Term Care Insurance into financial plans today can help protect assets, reduce the burden of care that would otherwise fall on family members, and enable clients to receive care in the setting they most prefer, including their home.
 
Perhaps the greatest benefit: Long-Term Care Insurance allows loved ones to care about, rather than care for, each other.
 
We’re here to help you design a plan that is both affordable and the best solution for your clients’ needs – contact your LTCi Sales Reps for guidance.
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Why Business Owners Should Invest in Disability Buyout Insurance

When a business has multiple owners, Disability Buyout Insurance provides funds to buy out the disabled owner’s share of the business. This ensures that the business can continue operating smoothly without financial strain.

The Importance of Disability Buyout Insurance

Without this insurance, a disabled owner’s share of the business could become a burden, leading to potential disputes and financial instability.

Who Needs Disability Buyout Insurance?

Any business with more than one owner can benefit from Disability Buyout Insurance. Whether it’s a partnership, a corporation, or a limited liability company, having this insurance in place can safeguard the business from potential disruptions caused by a co-owner’s disability.

How Disability Buyout Insurance Works

When a co-owner becomes disabled, the Disability Buyout Insurance policy is triggered. The policy provides the necessary funds for the remaining owners to buy out the disabled owner’s share of the business. This ensures a smooth transition of ownership and allows the business to continue operating without interruption.

Choosing the Right Disability Buyout Insurance

Factors such as the value of the business, the number of owners, and the potential impact of a co-owner’s disability should be taken into account. Working with an experienced insurance advisor can help in choosing the most suitable policy.

Conclusion

Disability Buyout Insurance provides financial protection and ensures a smooth transition in the event of a co-owner’s long-term disability. By understanding the importance of this insurance and choosing the right policy, business owners can mitigate potential risks and secure the future of their business. Contact your Disability Insurance Specialist to learn more.

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Passing On NQ Annuities To Heirs Tax Free 💸 Thursday, July 16

Passing on NQ Annuities to Heirs Tax-Free

Thursday, July 16th – 10.00 AM to 10.30 AM PST

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Annuities are powerful tools for growth and, eventually, lifetime income. However, some clients end up passing annuities on to their heirs because they never end up needing the income. In cases where the annuity has experienced significant growth, they may also hesitate to access it because of the tax consequences. As a result, this can create a substantial tax burden for beneficiaries after the client’s death.

The non-qualified beneficiary stretch strategy is not new, and it can help reduce taxes while allowing the asset to continue growing as payments are distributed over time. But what if there were a way to pass on an annuity and keep it tax-deferred—with no immediate tax impact?

Join CPS and Scott White, RICP, VP of Annuity Sales and Marketing, for an in-depth look at the Pass in Kind Strategy. During this call, we’ll review the benefits of revocable living trusts and discuss how they can be used to transfer non-qualified annuities in a tax-efficient manner while preserving tax-deferred growth for clients’ loved ones.

Questions? Contact the CPS Annuities Team at (949) 863-0700 Option 2.

This material is for general informational purposes only and is not intended to provide, and should not be relied upon for, tax advice. Tax laws are subject to change and may affect each individual’s unique situation. You should verify all tax information with your qualified tax advisor and rely on their guidance regarding your specific circumstances.

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The Best Use Of Unneeded RMDs!

In December of 1788 New Hampshire became the ninth state to ratify the newly drafted U.S. Constitution, assuring it would become the law of the land. The great sage and statesman, Benjamin Franklin, wrote to a friend, “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.”
 
Perhaps what Franklin didn’t emphasize enough was how unavoidable taxation would be for IRAs!
 

It’s all good times when contributions and account growth are tax-deferred, but when those salad days are over there is no avoiding the IRS.

 
Non-spouses who inherit an IRA must clean it out and pay tax within 10 years. But for most the payday begins at age 73 when the IRS demands taxable required minimum distributions (RMDs).
 
What do you advise a client who tells you they don’t need the RMDs? Franklin would probably suggest they recover the tax (and then some) by using the balance to purchase a life insurance policy!
 
But it takes a bit of attention. Carriers don’t approve coverage simply because your client can pay the premium.
 
Financial justification must be made, usually in two ways that most age 73-plus clients cannot fulfill:
  1. Earned income replacement – Most receiving RMDs no longer work!
  2. Anticipated death taxes – Most aren’t wealthy enough that death taxes are a concern, even in the 20 or so states that have their own death tax.
Fortunately, many carriers have adopted a third justification guideline allowing a policy on your clients who want to leverage their legacy using unneeded RMDs to purchase coverage on themselves.
 
The criteria differ with the carrier, and the applications require some explanation up front. So let us help you with your clients’ RMD planning, finding the best carrier and structuring the policy in a manner that will best serve the policy beneficiaries. Contact Tom Virkler, JD, Director of Advanced Markets at tom@cpsadvancedmarkets.com or 706-614-3796.
 
For What It’s Worth – Dr. Franklin’s portrait appears on the hundred-dollar bill. Slang on the street often refers to these C-notesas “Benjamins.” Since July of 1969 they have been the largest denomination in circulation and since then have declined by almost 90% in buying power.
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3 Out Of 4 Clients Want Help Preparing For Retirement – Do They Know How You Can Help?

Clients often think of life insurance solely as an instrument to protect them in the event of premature death, unaware of the valuable tax benefits that are afforded through cash value life insurance. And in today’s volatile marketplace, clients that are saving to retire need all the help they can get.

You have access to many products that can provide your clients with tax favored cash accumulation and if structured properly, will also provide for non-reportable, tax-free income.

The ability to specify a premium schedule is one of the great features available in our cash value life insurance products, removing the objection that the policy costs too much money. By educating your clients about the benefits of cash value life insurance as a long-term savings vehicle, they are likely to fund the policy with as much premium as they can reasonably afford.
 
While term insurance may be efficient for replacing income, or indemnifying debts, clients are very likely to outlive their level benefit period – receiving no return on their premium contributions.
 
How You Can Help
 
Recommending a cash value insurance policy at a younger age and more favorable health will better prepare your clients to address critical financial concerns such as retirement income planning, college tuition funding for loved ones and also paying for unexpected events (medical emergencies, litigation, home renovations, etc.) in their family.
 
The longer that you can fund a policy and allow the cash value account to compound interest and grow, the larger the potential income stream will be. One of the unique features of using life insurance is the death benefit – if the insured dies prior to accessing their cash values, it will provide a tax-free return on the premiums paid to date.
 
Many of your clients want to have a conversation about their options in regards to preparing themselves for retirement, but feel overwhelmed by the thought or do not know where to start. If you haven’t shared how cash value life insurance can play an integral role in their long-term financial planning strategy, you are likely missing out on easy sales; leaving the door open for another broker to have that conversation with them instead.
 
Your Life Sales Rep can provide you with an understanding of the different products available for cash accumulation. We can provide you with customized solutions for each client. Whether they can spend $100/month, $1,000/month or $10,000/month, we can create a solution that fits their budget.
 
Contact us today to learn how you can begin to position cash value life insurance as a core product offering to all of your clients.
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MEGA-LTC – Coverage With All The Advantages

The first car insurance was purchased in 1897, by Gilbert J. Loomis of Westfield, MA.It provided $1000 of liability coverage for an annual premium of $7.50. There is no record of how happy Mr. Loomis was when paying for the coverage, but in the 120 years since, few have been enthusiastic about buying automobile insurance. The premiums are high and unpredictable. Getting claims paid properly is difficult. And worst of all: accident-free drivers might as well be throwing the premium dollars out the driver-side window.
 

For a generation, similar complaints have been made concerning long-term care insurance, often discouraging your clients from buying the protection they need.

 
But those product shortcomings are gone! Consider introducing them to a policy that:
  • Guarantees premiums for the life of the policy and allows payment options ranging from single-pay to annual-for-life.
  • Guarantees benefits and allows for benefit inflation options.
  • Guarantees a death benefit, reduced only by the amount of any payments made for long-term care.
  • Guarantees a portion of the long-term care and death benefits even if scheduled premiums are stopped.
  • Guarantees benefits paid retroactively to day one after the 90-day elimination period is completed.
  • Guarantees payment of benefits in cash to be used as the policyholder sees fit.
  • Guarantees division of the benefits between spouses as needed.
  • Guarantees full or partial return-of-premium options in certain policy years if the policyholder chooses to end coverage.
And all the policy features have a range of flexibility in design so the coverage can be customized to meet each client’s particular needs and circumstances. Bring your clients’ long-term care planning to us.
 
For What It’s Worth – The first automobile manufacturer, the Oldsmobile Motor Company, was founded in Lansing, MI, the same year Mr. Loomis bought his policy, but the coverage was on a car he had built himself!
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Happy Independence Day!

As we celebrate our nation’s independence, we want to take a moment to thank you for your continued trust and partnership. We are grateful for the opportunity to serve you and wish you and your family a safe, happy, and memorable Fourth of July.
 
Please note: Our office will be closed in observance of Independence Day on Friday, July 3rd, and will resume normal business hours on Monday, July 6th. If you need any information, forms or quotes, please visit our website www.cpsinsurance.com.
 
As we reflect on the freedoms and opportunities we enjoy, we are reminded of these words from President Harry S. Truman:

“America was not built on fear. America was built on courage, on imagination, and an unbeatable determination to do the job at hand.” — Harry S. Truman

From all of us, Happy Independence Day! We hope you enjoy a wonderful holiday weekend filled with family, friends, and celebration.

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