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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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Resize image project - 24 August 2026 at 07.18.51

Understanding Loan Options Within IUL Policies

Indexed Universal Life (IUL) is a popular product choice for cash value accumulation because of its potential for higher interest crediting rates based on the performance of a selected index over a given period of time.
 
A big selling point for the IUL product line is the assurance that the client will never lose a single cent of their accumulated cash value due to poor market performance.
 
Unlike Variable UL policies which are subject to market performance and allow for both gains and losses on your account value, IUL uses a floor rate to protect your cash value from losses when your index account allocations have negative returns.
 
This makes for a great story during the accumulation phase. But what about the distribution phase? What is the best way to distribute the funds from the policy?

Understanding the different options available is the key to making the best decision for your client. Most IUL policies allow for either fixed or variable loans.

The fixed loans have a stated interest rate on the outstanding loan amount so there is no question about the cost of the loan. After a certain number of years, the IUL product will often provide for a wash loan or preferred loan where the amount being charged on the loan is the same as the interest being credited to the cash value (thereby resulting in zero net cost on the loaned funds.)
 
The more commonly illustrated policy loan distribution is the Variable 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’s what many producers prefer to show to their clients.
 
It is imperative that producers understand how these loan 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 your client’s risk tolerance and whether or not they plan on paying outstanding policy loan interest as it accrues, either policy loan option can be appropriate. If you do not have an understanding of how your clients would like to approach their policy loans and simply elect the variable loans due to the potential for positive arbitrage, you may be setting yourself up for a difficult conversation 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.
 
Agents who are 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 in their best interest.
 
Our Life Sales Team is here to help you navigate the various options and make the most suitable recommendations for your clients. Contact us today.
Resize image project - 20 August 2026 at 09.36.53

The Best Underwriting Offer? – Let Us Do The Carrier “Vetting” For You

It’s commonplace to see shoppers standing next to their grocery cart using their phone to compare the cost of an item elsewhere. And A.I. has raised the ease of price comparison by generating store-to-store results for a product before you ever leave home. Many e-commerce websites automatically alert buyers to better deals at alternative sites.

In the same manner, we dramatically reduce the time and effort it takes you to find the best life policy for your client in the more complicated life insurance world:
  • Informal underwriting – We will coordinate your client’s medical data and any existing carrier exams. After our in-house evaluation the information is sent to those carriers we know to be more amenable to the medical or lifestyle circumstances in each case assuring that each has the appropriate product available to suit the case needs. Based on the results you can proceed with assurance that formal application is being made to the best carrier choice.
  • “Quick quotes” – If time is of the essence and there are specific medical concerns (e.g. diabetes; sleep apnea; a history of cancer) or life practice issues (e.g. tobacco, alcohol or drug use; foreign travel; bankruptcy), completion of an appropriate questionnaire enables us to get prompt evaluation to determine carriers most likely to make the best offer.

Save yourself some steps and make the carrier selection process for your client more effective and economical. With a minimum of effort on your part, we will find the insurer most sympathetic to your client’s circumstances and needs.

Contact us to discuss the opportunities for your case at hand.

For What It’s Worth: It is estimated that the average household could save $1,000-5,000 each year by better comparing prices. It is reported that many modern e-commerce sites use algorithmic dynamic pricing using personal data to adjust prices based on the site-user’s perceived willingness to pay. Regularly clearing cookies and using comparison trackers could prevent being overcharged.

Resize image project - 20 August 2026 at 07.59.05

When Asset Based LTC Is A Fit

Most people will need long-term care services at some point during their lives, and the costs can be staggering.
 
Asset Based Long-Term Care offers your clients an efficient way to plan for these potential expenses with LTC coverage plus as well as a death benefit for cost recovery.
 
Four potential client profiles for Asset Based LTCi.
 
1 | Clients ages 40-80 with “sleeping assets” or cash, such as:
  • Cash, CDs or bonds that are maturing
  • Proceeds from selling a business
  • Funds from downsizing/ selling a home
  • A recent inheritance
CONCERN: Impact a LTC event could have on their spouse, family and finances
PAYMENT: Single Premium
 
2 | Clients ages 55-67 closing in on retirement who are:
  • In the peak of earning capacity with excess income for premiums
  • Preferably age 59.5 or older so they can access qualified money not needed for retirement income
CONCERN: The financial and lifestyle risks LTC expenses could have on their spouse
PAYMENT: 5, 10, 20-pay or pay for life
 
3 | Retirees with IRAs, annuities or income sources to reposition:
  • Required minimum distributions from IRAs not needed for income purposes
  • Annuities not needed for retirement income purposes
  • Social Security benefits not needed for living expenses
CONCERN: Protecting assets/ income and reducing LTC dependence on family
PAYMENT: 5, 10, 20-pay
 
4 | High earners not rich yet (HENRYs) ages 40-55 who:
  • Have excess annual liquidity
  • May have experienced providing care for a parent or grandparent
  • See the value of buying earlier rather than later
  • Would like to insure their parents for LTC to protect their own savings and retirement assets
CONCERN: Protecting assets/ income and reducing LTC dependence across generations
PAYMENT: 5, 10, 20-pay
 
Contact your LTC Sales & Marketing Associate today for more information.
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2026 CPS DI Fall Workshop 💸 Tuesday, September 29

Join us at the 2026 CPS DI Fall Workshop!

Tuesday, September 29th – 12.00 PM to 2.00 PM

Il Fornaio | 18051 Von Karman Ave, Irvine, CA 92612
*Lunch and valet parking will be provided

REGISTER NOW
Strengthen your expertise in Disability Income Planning for both individuals and business owners.

By applying these concepts, you’ll be better equipped to confidently discuss Income Protection with clients and uncover new opportunities to grow your business.

FEATURED SPEAKERS

  • Tom Nicols, CLU, FLMI, Vice President DI Sales & Marketing with CPS
  • Jordan Callihan, Reginal VP with Assurity
  • Derrick Pfau, Regional VP with Petersen International Underwriters
  • Josh Craig, Regional Sales Manager with Principal Financial Group

Questions?  Contact the CPS DI Team at (949) 863-0700 Option 4.

Resize image project - 18 August 2026 at 11.05.49

Critical Illness Insurance: Preparing To Bridge The Gap

Many Americans are living without ample savings – and a lot are living paycheck to paycheck. When these families are struck with an unexpected illness such as a heart attack, stroke, or cancer, it can cause a serious financial hardship… even if they have health insurance.
 
The average annual income in the United States is $50,000 – and most health insurance policies carry at least a $5,000 or $10,000 out of pocket max that will easily be reached when suffering from a critical illness.
 
On top of that, any one of these illnesses will undoubtedly result in an absence from work for an extended period of time – causing the loss of valuable income at a time when they are experiencing increased expenses.
 
Consider This
 
This combination of out-of-pocket healthcare costs, loss of income, and mounting household expenses come together to form ‘The Perfect Storm’, which too often leads to a bankruptcy.
 
Bankruptcies resulting from unpaid medical bills will affect nearly 2 million people this year-making health care the No. 1 cause of such filings, and outpacing bankruptcies due to credit-card bills or unpaid mortgages, according to new data.

Having health insurance doesn’t buffer consumers against financial hardship.

Most advisors sell life insurance to protect their clients should the bread winner not make it home from work one day. But how can we protect our clients against financial catastrophe if the heart attack, stroke, or serious illness doesn’t amount in a premature death?
 
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.
 
Claims statistics suggest we are five times more likely to suffer from one of these issues, than we are to die before we reach age 65. You don’t want to get a call one day, find out something has happened to a client, and regret having never discussed the opportunity to purchase a Disability Income or Critical Illness Plan with them – have the discussion with each of your clients as soon as possible.
 
Our dedicated DI Sales Reps are well versed on the features and benefits of Critical Illness Coverage – contact us at for assistance today.
Resize image project - 17 August 2026 at 12.41.44

Tired of carrier renewal drops? Here’s a guaranteed 10.25% S&P 500 Cap

Lock In a 10.25% S&P 500 Cap for Years 2, 3 & Beyond

Tuesday, August 25th – 10.00 AM to 10.30 AM PST

REGISTER NOW

Have you ever sold a Fixed Indexed Annuity (FIA) with a 10.25% S&P 500 cap, only to see it plummet to 5% at renewal?

Carrier renewal drops are one of the biggest headaches in the FIA space. While CPS thoroughly vets our 35+ carrier partners for strong renewal integrity, some clients demand absolute certainty.

Join us for a quick look at a product that eliminates the guesswork: an FIA featuring a 10.25% S&P 500 cap that is contractually guaranteed for Year 2, Year 3, and beyond. No surprises. Just locked-in growth potential.

Inspire total client confidence.

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

Resize image project - 17 August 2026 at 14.24.07

A Buy-Sell: Cheap To Fund, But Expensive To Form?

Nothing saps the thrill of owning a sassy new automobile more than the increased premiums on the car insurance that are about half the amount of the monthly payment on your Little Deuce Coupe.
 
And those nifty printer/scanner/copier/faxing machines that they are practically giving away at Paper-clips ‘R’ Us don’t seem so nifty when you replace the ink cartridge(s) for the first time at a cost about equal to the original purchase price.

The phenomenon of deferred-sticker-shock can put the bite on what might otherwise be a nice insurance sale to fund a buy-sell agreement.

As an example:
 
Three young, non-smoking, healthy entrepreneurs, let’s call them Sharon, Caroline and Andrea, operate a promising LLC taxed as an S-Corp. They agree to buy out the estate of any that might prematurely pass for $1,000,000. They take out a policy on each for that amount to fund the buy-out. On each policy the two non-insureds jointly own the policy on the insured, e.g. Sharon and Caroline own the policy on Andrea.
 
So Andrea dies and the $1,000,000 from her policy is used to buy her interest from her estate. That’s all good as far as it goes. But what happens to Andrea’s interest in the two remaining policies? Well, because they were owned jointly, Sharon is now the sole owner of the policy on Caroline and vice versa. The problem is that the shift in ownership caused by Andrea’s death is probably a transfer-for-value. Up to one-half the death benefit could be subject to income tax if paid.
 
The most common exception to the TFV rule is an ownership change between partners. The problem here is that the ladies’ company is taxed as an S-Corp and there may be reasons they don’t want to change to partnership taxation. And the cost of creating a partnership simply to handle the insurance may be several times the annual premium on the insurance, all to avoid a tax hit that will only occur if a second death occurs while they are still operating the business.
 
Perhaps the best you can do is to suggest they discuss with their tax advisor the feasibility of an ownership reset if a first death occurs.
 
This would involve:
 
  1. Transferring the remaining policies back to the insured (another TFV exception that also cleanses the policy of the taint of the TFV).
  2. The creation of a partnership between the survivors (at least the cost is incurred only when needed).
  3. Exchanging the policies to establish cross-ownership without any TFV issues.
The suggestion should be reduced to a writing that they can take to their tax advisor and that you can also keep in your file to document that you raised the issue. We can help with that and also explain the problem to the client and their advisor.
 
Give Tom Virkler, JD, Director of Advanced Markets, a call at 706-614-3796 or email tom@cpsadvancedmarkets.com regarding this and any planning questions that come up, especially in your clients’ buy-sell planning.
 
Long ago in the pre-Tesla days of electric car design, a cartoon in the Saturday Evening Post (whatever that is) showed a salesman breaking down the cost of an electrical car to a prospective buyer: “. . . and that will be $1500 for the automobile, and $35,000 for the extension cord.”
Resize image project - 17 August 2026 at 08.43.57

5 Essential Life Insurance Questions Every Client Should Answer

When it comes to securing a financial future, life insurance is a key piece of the puzzle. However, choosing the right policy isn’t just about picking a plan — it’s about understanding your clients’ needs and making informed decisions.

To ensure you’re getting the best coverage for your clients and their loved ones, it’s important to ask the right questions.

Here are the 5 essential Life Insurance questions every client should answer to make a confident and well-informed choice:
  1. If something happened to you, how would your family manage financially?
  2. If you could get affordable coverage that secures your family’s future, would you be open to exploring options?
  3. Have you heard of life insurance that pays policy holders for healthy living?
  4. Will your business suffer financially if you lose a key employee?
  5. Do you provide group term coverage to all your employees? Would you be interested in rewarding key executives with permanent coverage for less than the cost of term insurance?

For more information or assistance with a case, contact your Life Sales Associate today!

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Great Underwriting News On A Weighty Issue!

Our Underwriting Department can help you make the sale for your clients whose weight is an issue.

One of our A+ carriers takes an aggressive approach to underwriting build cases.

Some case examples that may surprise you:
  • A man who is 6’ 0” and 300 pounds could possibly qualify for Standard rates with credits for favorable blood pressure and cholesterol levels.
  • A woman can be 5’ 4” and 235 pounds and possible Standard if there are no co-morbidities present.
Next time you have an applicant whose weight is an issue, think of us and you’ll find we don’t think it’s that big of an issue.
 
Contact our Underwriting Team to help uncover more ways to get better offers for your clients and increase your sales !
Resize image project - 13 August 2026 at 07.47.28

Protecting Those Who Care For Others

Women often try to find the right balance between juggling careers, spending time with family, and caring for loved ones.

With women living longer, and providing more caregiver services, they become more vulnerable to long-term care issues.

Now is the perfect time to increase your focus on existing and potential female prospects to expand your LTC Insurance business.
 
How You Can Help
 
Women may spend their entire lives taking care of other people. You can help them create strategies to plan for their future and help protect their retirement assets. An LTC Insurance policy can help protect their assets and help them maintain independence in the future.
 
To increase your reach and help your female clients take the first step to long-term care planning, consider these scenarios:
  • Married Couples: Husbands often need care first, leaving less assets for the wife to use for her own care. Review your clients’ long-term goals to ensure both parties have a care plan for the future.
  • Same-Sex Couples: Current financial planning rules can make it tricky to access a partner’s assets when care is needed. Help your clients design a plan to share each other’s benefit dollars.
  • Widowed/Divorced: When a woman becomes divorced or widowed and has no children, there may be no one to take care of her. Almost 70% of women age 75 or older are widowed, divorced, or never married, compared to only about 30% of men. Explain to your female prospects the value of Long-Term Care planning and how a policy can help them protect their future.
  • Adult Children of Aging Parents: In helping adult children with their own LTC planning, they can purchase coverage and have access to our Caregiver Support Services Benefit, which is a great source for advice and helpful information should a long-term care event arise for an uninsured family member, especially Mom.
Reasons to Plan
  • Nearly 60% of LTC Insurance policies are issued to women, indicating that women are acknowledging the need for care.
  • 79.1 years is the current life expectancy for women. The current life expectancy is 73.2 years for men.
  • For every 100 men in U.S. nursing homes, there are approximately 178 women. 
Expand Your Target Market

Look for local women’s organizations in your area and consider hosting an LTC planning seminar to educate women on the risk of not having a plan and the comfort of having one.

Contact Us

Our expert team can offer advice on discussing Long-Term Care with women and how to approach their concerns. Contact us today to learn more.

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