Menu

CPS Insurance Services

About CPS Insurance Services

http://www.cpsinsurance.com

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

Posts by CPS Insurance Services :

Shutterstock_492123274

5 Tips To Start The Income Protection Conversation

To boost your Individual Disability Insurance (IDI) success, try these 5 tips to emphasize how IDI can provide much-needed income protection for your clients.
 
Focus on the Need, Not the Solution
 
Your clients likely don’t know why they need IDI and what it will do for them. Start with the basics – it provides income in the very real chance of a disabling injury or illness – and save the policy details for later.
 
Tell Stories to Make It Real
 
Most clients don’t believe disabilities will happen to them. They do believe they could get sick or hurt. Bring the risk to life with real life examples, such as being diagnosed with cancer or experiencing a back injury that prevents them from working and earning income.
 
Compare IDI with More Familiar Insurance Offerings
 
Clients understand the need for Auto or Homeowners Insurance to protect them. Explain that if they don’t have IDI to protect their ability to earn and income, they could lose their homes, cars, and lifestyle when they are unable to work.
 
Stick to the Facts
 
Illnesses like Cancer, Heart Attack, or Diabetes cause the majority of long-term disabilities, encourage clients to secure the most fundamental aspect of a financial plan – income.
 
Position IDI as the foundation of their Financial Plan
 
Financial planning is pointless if your clients lose the ability to earn an income to fund their plan. IDI can help ensure access to income if they unexpectedly are unable to work due to an injury or illness.
 
When selling IDI, clients may shy away from conversations about disability, but will understand and engage in conversations about loss of income. Helping clients make the connection between income protection and IDI could go a long way toward growing your business.
 
Contact your Disability Specialist to learn more about how to position IDI as much needed income protection.
Shutterstock_2206148591

Empower Your Clients: After-Tax Contributions & In-Plan Roth Conversions

Key Advantages for Your Clients
  • Expanded Savings Opportunities: After-tax contributions allow participants to save beyond standard deferral limits, appealing especially to highly compensated employees. These contributions, when converted to Roth via IPRC, offer the potential for tax-free growth.
  • Strategic Tax Planning: Prompt conversion of after-tax funds to Roth can minimize tax liability on earnings, supporting participants’ long-term financial goals.
Compliance Considerations
  • Adding after-tax and IPRC features introduces compliance complexities, particularly ACP testing. Plans with a high proportion of highly compensated employees may face challenges in passing these tests. Safe harbor plans may also require additional testing if after-tax contributions are added.
Broker Guidance: Feasibility and Implementation
  • Advise clients to conduct a thorough feasibility analysis, considering recent ADP/ACP testing, plan type, eligibility rules, and employer contribution structures.
  • Recommend setting initial low limits on after-tax contributions to gauge interest and manage compliance risks.
Partnering for Success

CPS Employer Benefits provides technical expertise and consulting support to help brokers and their clients evaluate and implement these plan enhancements effectively. Connect with Jim Moore, Vice President of Retirement Services, at (949) 225-7145 or jmoore@cpsbenefits.com to ensure your clients’ plans are compliant, competitive, and positioned for participant success.

Shutterstock_2493011795

The Probate Court Is Not Your Friend!

Most think the Probate Court is a necessary and unavoidable final landing place for accumulated wealth before it passes to the next generation.  It is neither; and it should be completely avoided if possible.   

Two common examples of probate-avoidance:
  • Jointly owned property (most often with the homeplace between spouses) – Owners have equal shares and a deceased’s ownership interest is automatically re-allocated among the surviving joint owners.
  • Beneficiary designations (most often on life insurance policies) – Upon death of the owner of the account (or the insured on the policy) assets transfer automatically to the named beneficiary.

But… without further planning even these strategies might only kick the can down the road, because upon the death of the last joint owner or the beneficiary, the assets could still end up in the Probate Court. 

And then only four things are certain:
  • The assets of the probate estate will be fully disclosed in the public record,
  • The assets will be subject to the claims of creditors (in fact, that is the purpose of the probate),
  • Receipt of the assets by intended heirs will be delayed, and
  • A portion of the assets will go to pay the fees of the attorneys handling the probate.

A common planning solution to the problems of probate suggested by legal and tax advisors is the use of a simple revocable trust, not be confused with an irrevocable trust.  Managing assets in a revocable trust allows flexibility and control during life and provides greater privacy, less delay, and less expense in the handling of final affairs.

Call Tom Virkler – JD, Director of Advanced Markets, at 706-614-3766, or tom@cpsadvancedmarkets.com today to discuss the features and advantages of revocable trust planning so that you can suggest a revocable trust be part of a client’s overall financial plan and how it can be coordinated with their insurance and annuity arrangements.

Shutterstock_1338054311

Calculating Retirement Needs – We Can Help You Do The Math

Retirement planning has become the first priority for many individuals. Social Security and other retirement plans may not be sufficient for the clients’ needs. Though a client may be funding a 401(k) and IRA, they still might worry that they do not have enough savings opportunities, or that they may have a potential retirement shortfall.

One of the most overlooked savings tools for retirement is life insurance.

The cash value of a life insurance policy grows on a tax-deferred basis and may provide your client with a source of additional retirement income.
 
Address potential planning opportunities in your clients’ retirement plans.
 
We can generate a detailed report unique to each client on the potential income gap between their dream income, and what they are actually going to receive in retirement.
 
A member of our team would use this information to conduct a thorough retirement check-up, and help you show your clients how life insurance can positively affect retirement years.
 
Please contact us today – we look forward to the opportunity to help you complete a retirement check-up for each of your clients.
Shutterstock_718850137

Extended Shelf Life Of Medical Requirements Can Help Boost Your Sales!

The idea of getting your client examined for life insurance can be a challenge.

Asking for a second exam after one was done in the not so distant past can jeopardize a sale. Worry no more.

Consider the following:
 
A 70 year-old female applied for $10 million of life insurance coverage with another company, was approved, and the policy placed in-force over six months ago. She now desires additional coverage for the same amount, but does not want to go through another exam. Her previous exam, lab and resting EKG were completed over nine months ago.

Exam requirements are generally good for up to 12 months on applicants up to insurance age 70, so your client does not have to be inconvenienced by scheduling new testing as long as a non-medical part 2 is completed along with the application.

For those applicants over age 70, cognitive testing previously done may be good for up to one year in addition to resting EKGs – although they will need a new exam and labs after a 6 month time-frame.

*Age limits and timeframes may vary by carrier

Take advantage of these guidelines when you can, give us a call to discuss the details of your cases – the Underwriting Department is here to help.

Shutterstock_122671333

LTC Detective Work – 6 Things You Need To Do

Long-Term Care can be a tough subject.

Often times, you have to do a little detective work to ensure your cases are processed through Underwriting quickly.

Here are six things you can do to help uncover important information the underwriter needs to issue your case.
 
Ask about specialty physicians.
  • If your client had bypass surgery, ask whether they have a cardiologist.
  • If they had joint replacement, ask if they have an orthopedist.
  • If they have rheumatoid arthritis, ask if they see an arheumatologist.
  • If your client is taking multiple medications for depression and anxiety, ask if they have a psychiatrist.
  • If they have diabetes, ask if he sees an endocrinologist.
Pay attention to the date of diagnosis.
A recent diagnosis (within six months to one year) may not be enough time to assess the client’s stability.
 
Note the date of the last doctor’s visit.
If it’s been over two years since your client’s last physical exam and lab work, they won’t qualify for preferred underwriting. Also, pay attention to recent doctor’s visits. Ask your client if they have a follow-up visit planned. Knowing an applicant is undergoing treatment allows the underwriter to order an attending physician’s statement immediately, instead of waiting until the client mentions it during the personal health interview.
 
Listen carefully for these things:
  • Pending tests – Be sure to ask if the client is scheduled for a test that has not yet been performed.
  • Recent surgeries – Ask what type of surgery the client had. Was a malignancy found? Has the wound healed? You also should ask if the client is released from care or requires further follow-up.
  • Physical therapy – Ask about the diagnosis. Is the pain or condition resolved? Do they require further treatment? Find out if the physical therapy helped or if surgery has been recommended.
Try to identify the diagnosis behind the medication.
Many people refer to a medication in terms of the symptoms it addresses. For example:
 
  • Your client says they take a “water pill for fluid.” This can mean several things, from occasional lower extremity edema to something more serious, like heart failure. Also, pay close attention to the medication dosage as this can be a clue to your client’s condition.
  • Many applicants will indicate they take a “blood thinner.” Ask about the diagnosis. Is there a history of stroke or mini-stroke? Has the client had any type of heart surgery and, if so, when? Has the client had blood clots? If so, how long ago? Has the client had surgery of the leg?
  • If your client says they take a medication for “bones” or to “prevent osteoporosis,” ask if they’ve had a bone density test done in the past two years and what the doctor told them about their bone density. Typically, these medications aren’t prescribed unless bone density tests have indicated the applicant has some type of bone loss, which impacts insurability.
  • If your client mentions taking a medication for “arthritis,” you should suspect rheumatoid arthritis or another serious condition and rate accordingly.
  • If your client lists pain medications, specifically narcotics, it’s very important to find out the reason the medication is used, how often it’s taken and how long the client has used it. For example, does your client use it only after they mow the lawn or do they have pain on a daily basis?
Question everything.
If you have a client who is young, but not working, ask why. Do they have chronic health conditions that prevent them from working? Are they collecting disability benefits? The underwriter needs to know.
 
Please contact your LTC Specialists for more information.
Shutterstock_393957784

Critical Illness Coverage Pays Up To $500,000 Upon First Diagnosis

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 a severe financial hardship for many of our clients.
 
Traditional health insurance plans cover medical expenses such as hospital stays, physician’s fees and the pharmacy bill. However, additional costs such as the insurance deductibles, child care, insurance premiums, and home health care must often be paid for by the recovering patient directly.
 
Critical Illness Insurance pays a tax free lump sum payment immediately upon first diagnosis of any one of a list of serious illnesses – including cancer, heart attacks, or stroke.

Claims statistics suggest we are 5 times more likely to survive rather than die before we reach age 65 of cancer, heart attack or stroke.

The good news is, medical advances enable people to survive conditions that could have killed us years ago. For example, more than 90% of men diagnosed with testicular cancer are still alive 5 years after first diagnosis, and 80% of women diagnosed with breast cancer have the same survival rate. There are over 5.8 million stroke survivors are alive today, many of them with permanent stroke related disabilities.
 
How does it work?
 
We have access to several critical illness carriers that offer unique policies to meet your client’s needs. I have found one plan in particular that offers a very comprehensive benefit plan at a very affordable cost.
 
Think of putting your premium dollars into a safety deposit box and if you are diagnosed with one of the 12 covered illnesses (including Alzheimer’s) the policy will pay the face value. Or, if you die of one of the covered illnesses, the policy will pay the face value to your beneficiary. If you should die of any other reason, 100% of all premium paid towards the plan will be returned to the beneficiary as a tax-free death benefit.
 
While most critical illness policies have a reduction of benefit at age 65, we have critical illness contracts that extend the full benefits to age 75.
 
Consider this:
 
The likelihood of surviving a critical illness grows every year and so does the threat of being diagnosed. The coverage is very affordable. A male age 40 can secure a $50,000 critical illness benefit for only $52.56 per month. There is a plan to fit any budget with benefits up to $500,000.
 
Critical Illness Insurance is one of the best kept secrets in the industry and provides advisors a great opportunity right now to meet more clients, help more families and increase sales. Look to your clients with a family history of cancer, heart disease, or hypertension. They are very likely to be interested in purchasing protection before they are diagnosed.
 
Contact your Disability Insurance Specialist for detailed information about a plan that meets your client’s needs and budget.
Shutterstock_2593610401

Are Your Clients’ CDs Pulling Their Weight?

Certificates of deposit are a sure thing that let you rest easily at night. You park your money and collect the guaranteed taxable interest each year. No worries. No questions asked.

But, can you use the money elsewhere for better value with just as much, or more, certainty of results?

Consider the case of a 45-year-old male in preferred health, subject to 20% total income tax:
  • His current $100,000 CD pays 4% taxable income for an annual after-tax return of $3,200.
Can this client get a better return and still preserve his capital?
  • He uses the $100,000 to purchase a single-premium immediate annuity that pays $5,944 (a currently available rate of 5.94%) each year for life.  Since a portion of each payment is taxable, his annual after-tax return is $5,277.
  • To preserve his capital for heirs, he purchases a $100,000 level premium permanent policy guaranteed for his life with an annual premium of $994.
  • After the cost of insurance, his net annual after-tax disposable income is $4,283, $1,083 more than the return on his original CD.

Several factors will determine the attractiveness of this strategy, such as age, health and whether the client’s risk-reward profile will be inclined toward a plan with such favorable, but unfluctuating, guarantees.

Reach out to Tom Virkler, JD – Director of Advanced Markets, at 706-614-3796 or tom@cpsadvancedmarkets.com concerning your clients who would benefit from putting their CDs, or other fixed assets, to better use.

Shutterstock_2330871741

Placing Sleep Apnea Cases: A Breath Of Fresh Air

Imagine the thought of not being able to take in a breath, then suddenly gasping for air when you’re able to breathe in again. Now, you’re probably thinking to yourself this sounds a lot like the feeling you sometimes get with certain not-so-favorable offers on impaired risk cases!
 
All kidding aside, this is actually what happens with people who have sleep apnea. An individual suffering from sleep apnea may not even be aware of it while it’s happening, but could still experience symptoms – most commonly, daytime sleepiness, morning headaches and loud snoring. Sleep apnea restricts oxygen to vital organs and if left untreated, it can lead to more serious conditions such as heart arrhythmias, stroke and diabetes.
 
Diagnosis is usually made after undergoing an overnight sleep study. Severity is measured by the Apnea/Hypopnea Index (AHI) which represents the number of episodes per hour. An AHI score of 5-14 indicates mild severity, 15-30 indicates moderate and over 30 is considered severe.
 
CPAP (Continuous Positive Airway Pressure) is usually the recommended treatment. Other treatments may include dental appliances or surgery. Follow up sleep studies to monitor the effectiveness of treatment are also often recommended.
 
So what does all this mean for life underwriting?

The key to favorable outcomes isn’t as much the severity at diagnosis as it is the follow up and compliance to treatment.

In some cases, lack of compliance or failure to follow up can lead to highly rated offers and declines.
 
Take for instance this case involving severe sleep apnea but with good follow up and compliance:
  • 66 year old male applying for $500k of Term coverage
  • Lifetime non-smoker
  • Height 6’ 4”, weight 220 lbs
  • Hypertension, well controlled on Amlodipine
  • High cholesterol, well controlled on Pravastatin
  • A sleep study done in 2016 revealed severe obstructive sleep apnea with an AHI of 78 and CPAP treatment was initiated
  • Sleep apnea is well controlled, without symptoms, and good compliance on nightly CPAP use.
Underwriting decision: Preferred NS for the sleep apnea history!
 
Place more business and earn more commissions! Our Underwriting Team is here to help you get the best possible underwriting offer on each and every case.
Shutterstock_2207219967

This One’s For You ❤️

You help clients protect their families, their legacies, and the people they love most. That’s not just business—that’s purpose.
 
Our business is love in action, and you’re the ones making it happen every day.
 
This Valentine’s Day, we want to thank you for the trust you place in us and for the difference you make for your clients. Here’s to meaningful conversations, lasting impact, and partnerships built to last.
 
Please be advised that our office will be closed on Monday, February 16th, in observance of Presidents Day. We will resume normal business hours on Tuesday, February 17th.
 
You can visit our website at CPS Insurance Services for our electronic application platforms, application paperwork, policy service forms, quoting software, and product information.

Load More

Back To Top

Excellence, Passion, Integrity, Collaboration and Creativity – our core values since 1974

The EPICC Center is the online source for financial professionals, designed to provide them with the essential elements they need to run their practice and increase their bottom line including breaking news, carrier / product information, market trends, sales ideas, marketing tools & resources and more.

Subscribe to our newsletter

* indicates required

Copyright © CPS Insurance Services, Inc. All Rights Reserved EPICC | Designed by Apis Productions