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Become A 3-Point Shooter By Understanding The proBNP

Just as basketball fans had to get used to the 3-point shot first debuted by the NBA in the 1979-80 season, we must get used to current trends in underwriting.
 
A blood test was introduced into the game and has been around for several years now. It’s called the proBNP.
 
What is it? The proBNP blood test is a marker for overall cardiovascular risk and a marker of long-term mortality in individuals with heart disease. It is released by the heart as a natural response to when the heart is not strong enough to pump adequate blood and nutrients to meet the body’s needs – when it is deprived of oxygen, or when the main heart muscle is enlarged from working too hard.
 
If the proBNP is abnormal on an exam lab panel, some carriers will automatically decline the applicant or ask for an additional cardiac work-up at the his/her expense in order to reconsider.

However, if the proBNP is favorable on an exam lab panel, carriers may be able to use the result as an underwriting credit for applicants ages 70 and up.

Here’s an example:
  • Male, Age 75, Non Smoker; Seeking $500,000 of UL coverage
  • History of a TIA (mini-stroke) 3 years ago
  • Followed closely by his physician
  • Insurance lab panel showed a proBNP of 55 (normal)
Under normal circumstances, this would be a mild substandard rate – however, with the credit, he can now qualify for Standard. That’s a 3-pointer and a win-win for us all!
 
Contact your Life Underwriting Department for more information.
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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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Happy New Year!

As we close the chapter on this year and look ahead to the next, we want to take a moment to thank you for your trust and partnership. Your support has been invaluable, and we’re excited to continue working together to achieve even greater success in the year ahead.

May the coming year bring you prosperity, growth, and new opportunities. From all of us at CPS, we wish you a Happy New Year filled with joy and accomplishment!

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

Please be advised that our office will be closed Wednesday, December 31st, and Thursday, January 1st, in observance of the holiday. We will resume normal business hours on Friday, January 2nd.

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Share Documents Quickly And Securely: A Quick Guide For Advisors

Insurance advisors handle highly sensitive information—policy applications, medical records, and identification documents. While speed is important, security is non-negotiable.

Easy Scanning Options to Replace Photos

Your smartphone is a powerful tool that can replace bulky scanners and photos that are difficult to read . If you use an iPhone, the Apple Notes app lets you scan documents in seconds: open a note, tap the camera icon, choose Scan Documents, and save as a PDF. For added functionality, the Adobe Scan app (free) creates clear, searchable PDFs and integrates with Adobe Acrobat for easy organization.

Why Security Matters

Insurance documents often include Social Security numbers, health details, and financial data—prime targets for identity theft. Sending these files via regular email or text leaves clients vulnerable. Advisors must use secure channels to protect both compliance and trust.

Best Practices
  • Use encrypted portals or secure emails
  • Add password protection to PDFs before sharing.
  • Avoid public Wi-Fi when transmitting sensitive files.

Convenience doesn’t have to compromise security. By combining simple scanning tools with encrypted sharing, you safeguard client data and strengthen your professional reputation.

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Tobacco Use: The Ifs, Ands & Butts Of Underwriting

Tobacco use is known to increase the risk of heart disease, stroke, lung diseases and cancer. It remains the leading cause of preventable disease and death in the United States. More than 19% of U.S. adults reported current tobacco product use.

When applying for life insurance, carriers consider all forms of tobacco/nicotine in their underwriting assessments: cigarettes, cigars, chewing tobacco, vaping, and nicotine‑replacement products such as gum, pouches and patches.

Typically, any use of tobacco products within the past 12 months is assessed at tobacco class and can significantly impact insurance premiums.

But did you know:
  • Non-tobacco class may be available with some carriers if the use is other than cigarettes or vaping. Smokeless tobacco – chewing, pouches, nicotine patches and gum – could qualify for Standard non-tobacco class if the use is disclosed on the application and if there is no use of cigarettes or vaping within the prior 12 months.
  • Celebratory cigar use (no more than 12-24 cigars per year) could qualify for up to Preferred Best non-tobacco provided a urine specimen is negative for nicotine.

Contact our Underwriting Team for more information on how to get the best rates on your tobacco cases.

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Executive Bonus – Enhanced To Show Quality

If you wanna feel better about yourself just do an Internet search on something like Celebrities Without Makeup, or Un-photo-shopped VIPs. It will do your heart good to see how plain looking or, in some cases, how down-right ugly-wuggly many icons among the “beautiful people” really are in their natural state.
 
Personalities whose reputation rests significantly on their physical attractiveness even have a critical team member responsible for the prior scouring of any pictures intended for distribution to assure that nothing un-doctored, un-enhanced, or unflattering slips through for consumption by the masses.

The Lady and Lord Mucks of the entertainment world understand that they work in a tough marketplace and things simply sell better when they look good.

Perhaps we insurance advisors could take a lesson from that when showcasing our own products and services. The difference is that a properly accoutered insurance-funded benefit plan will not only sell more easily, it will remain an ongoing thing of attractiveness and substance to those it protects.
 
A prime example is the often unadorned (and as a result the often unsold) executive bonus arrangement. The plan chassis is simply an executive-owned policy paid for by the employer. But creative use of some of its flexible features makes it the most attractive non-qualified benefit in most business situations:
 
Eliminate sticker shock.
 
The amount of premiums paid by the employer is reported on the executive’s W-2. Avoid the sting of a year-end tax increase by adjusting the bonus so that the after-tax amount covers the planned premiums and the remainder can be withheld to cover taxes on the total bonus on April 15.
 
Forget about recovering costs.
 
Too many employers worry about getting premiums back if the executive leaves after a couple annual bonuses. If recovery is a serious issue than use a split dollar plan. Otherwise provisions requiring reimbursement are burdensome and reduce the attractiveness of the plan to the executive. An employer can reduce risk by funding a policy at lower premium levels in the early years, then increasing the bonus amount as the service period lengthens.
 
Make it a “gold watch” as well.
 
A policy that must be maintained by the executive beyond retirement can be seen as an anticipated burden that takes some of the luster off the current benefit of the coverage. Fund the policy in a manner that will achieve paid-up status and allow the executive to carry the self-sustaining policy into his or her non-working years.
 
Make it a “living benefit” as well.
 
Adding a long-term care rider gives the executive lifetime protection as well by assisting with costs of care using tax-free accelerated benefits. Funding the policy to paid-up status at retirement gives the executive this protection through his or her entire life.
 
Economize using a “two-policy solution”.
 
A paid-up permanent policy, especially with an LTC rider, can get costly. Recognizing that death protection needs are higher during the working years, structure the plan so that the bulk of the coverage is provided with a level-premium term policy for the duration of the anticipated working life. This can be dropped at retirement when no longer needed.
 
In addition, carry a smaller permanent policy whose death benefit will cover a significant portion of costs if long-term care expenses arise, but will still provide adequate estate liquidity if long-term care needs don’t arise.
 
The ultimate futility of cosmetic or techno-treatment to shore up current or deteriorating beauty was summed up best by comedian Moms Mabley when she said, “Beauty is only skin deep, but ugly is to the bone!” But there is no decline in the beauty of a well-designed benefit plan that will keep good executives in the company fold through the provision of employer-provided lifelong protection.
 
Call Tom Virkler, JD, Director of Advanced Markets, with questions on your next case at 706-354-0401 or tom@cpsadvancedmarkets.com.
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We’re Closed For The Holidays

Just a friendly reminder that our office will be closed on Wednesday, December 24th, and Thursday, December 25th, in observance of the holiday. We will resume normal business hours 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.
Happy Holidays!
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Are Your Clients Leaving Big Money Behind?

Every year, countless seniors surrender or lapse life insurance policies worth hundreds of thousands of dollars—and walk away with little or nothing. 

What if you could turn that missed opportunity into a win for your clients and your practice?

A life settlement allows policyholders to sell an existing policy for far more than the cash surrender value. These funds can provide immediate liquidity for retirement, healthcare, or other pressing needs, transforming an under-utilized asset into real financial freedom.

Recent Example:
  • Client: 76-year-old female
  • Policy: $500,000 Universal Life
  • Annual Premium to Age 105: $23,100
  • Cash Surrender Value: $8,600
  • Life Settlement Offer: $90,000
  • Agent Compensation: $18,000

Instead of $8,600, this client walked away with over 10 times the value!

Ideal Client Profile
  • Age 70+
  • Death Benefit $500,000+
  • Universal Life or Convertible Term

Call now to find out what’s hiding in your book. 

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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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