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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.

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Are Only The Rich “Trusty?”

The author F. Scott Fitzgerald once said to Ernest Hemingway, “The rich are different from you and me.” Hemingway retorted, “Yes! They have more money!”

Unfortunately, that is often the only difference clients see between themselves and people who plan with irrevocable trusts to protect assets from death taxes.

But there are many planning advantages to suggesting irrevocable trust planning for folks who don’t have to worry about Federal estate taxes.
 
Consider:
  • Avoiding state death taxes – Many states have their own death or inheritance taxes that levy on much smaller amounts of taxpayer net worth.
  • Protection from creditors – Assets in the trust are free from judgement or levies against the creator of the trust.Trust beneficiaries are also protected so long as assets remain in the trust.
  • Detailed and private distribution planning – Sophisticated and multi-generational gifting and inheritance scenarios can be carried out free from the public scrutiny of the Probate Court.
  • Ongoing control of property – Transfers of non-voting interests in property held by a Family LLC allows the creator of a trust to continue to determine use of the trust property.
  • Spousal access – A married creator can grant broad access to trust property to a husband or wife allowing for withdrawals if assets and funds are needed later on.
  • Lower income taxation – Trusts can be designed so that income on assets are taxed in the creator’s lower tax brackets, rather than the compressed high trust rates.
Hemingway also said, “The best way to find out if you can trust somebody is to trust them.” And he would probably say that the best way you can find out if a trust can help is to trust us to help you and your client with their next case, especially in coordinating a trust with their insurance planning. Contact Tom Virkler, JD – Director of Advanced Markets, at 706-614-3796 or tom@cpsadvancedmarkets.com.
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How To Turn Single Term Insurance Sales Into Three Commission Checks

Term Insurance is designed to provide coverage for only a specific duration of time (10, 15, 20, 30 years). However, almost every term policy sold through us includes a provision allowing clients to convert their term policy into a permanent insurance policy – without requiring any new medical underwriting.
 
One of our brokers shared how they use this provision to create additional sales while also providing clients with a solution that they can rely on for the rest of their lives. During the initial sales discussions, they promote this conversion privilege, working with the client to determine how much coverage they would need and how quickly they could afford to exercise this option.
 
Since the pricing for the permanent insurance is based on the client’s attained age at the time of conversion, the sooner that the client converts their coverage, the less expensive it will be.

The client does not need to convert their entire term policy at once and can make use of multiple partial conversions to help keep premium costs low while providing added flexibility.

For example, if the client decides to purchase a 10 term policy for a $1M face amount, they could potentially convert $500K next year, $250K more in 5 years, and then make a decision whether they want to convert and maintain the remaining $250K towards the end of the level term period.
 
Many of your clients do not know that their term coverage includes this feature.
 
Far too often, the discussion of how and when to exercise a term conversion option is a reactive one, taking place when the level term coverage is about to end or shortly after the client has experienced a change in health for the worse.
 
Don’t set your term sales on auto-pilot.
 
Talk to your clients about why it makes sense to take advantage of the conversion provision. Explain how they can keep their initial term policy rating for the rest of their life without having to re-qualify in the future. It’s another great reason to stay in contact with your client and could even create new sales and/or referral opportunities with their family and friends.
 
Oh, and did we mention that you collect a new commission for each conversion sale you make? Your Life Sales Rep is here to help – contact us today.
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Tactical Tuesday | Executive Benefits: Strategies to Recruit, Retain, and Reward Key Employees

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

“Executive Benefits: Strategies to Recruit, Retain, and Reward Key Employees” 

Commemorate Small Business Month by exploring several compensation strategies to help business owners reduce employee turnover and costs.

Tuesday, May 26th, 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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Take Heart! Not All Cholesterol Is Bad

Did you know:
  • The liver produces all the cholesterol our body needs, however, dietary cholesterol (taken in through the foods we eat), causes the liver to send even more cholesterol into the bloodstream.
  • High cholesterol can cause fatty build up in the arteries which increases our risk of heart disease and stroke.
  • High-density lipoprotein, or HDL, is considered “good” cholesterol. HDL helps to remove bad cholesterol known as low-density lipoprotein, or LDL. Triglyceride is another form of cholesterol and the most common type of fat in the body.
  • Cholesterol/HDL Ratio is calculated by dividing total cholesterol by HDL. The higher the HDL, the lower the ratio. This is a good thing!
In the past, carriers looked stringently upon all cholesterol levels when underwriting a case.  These days, there are some carriers who can overlook total cholesterol levels if between 150-300.

Preferred classes are available with favorable, low cholesterol/HDL ratios, even with total cholesterol levels nearing 300!

Consider these examples:
  • 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!
 
  • 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!
 
  • 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: NON SMOKER PLUS!
 
Our Life Underwriting Department has a heart for finding the best possible outcomes on your cholesterol cases.  Give us a call!
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Are Your Clients Prepared for Rising LTC Costs?

Over the years, we’ve observed clear and consistent trends in the long‑term care market. While the cost of care has increased across all provider types, facility‑based care has continued to rise at a faster pace than care delivered at home—placing growing pressure on retirement assets.
 
If you live to age 65, there is approximately a 70% chance you will need some form of long‑term care services during your lifetime.
 
This makes proactive financial planning essential for managing future care costs and protecting long‑term financial security.
 
Current Costs of Long‑Term Care
 
Most long‑term care claims are paid for home care or assisted living, both of which generally cost significantly less than skilled nursing care.
  • Home Health Care Aide: The national median hourly rate for home health aide services is $35 per hour (2025).
  • Assisted Living Facilities: The national median annual cost for an assisted living facility is approximately $74,400 per year, based on a median monthly cost of about $6,200 (2025).
  • Nursing Home (Private Room): The national median annual cost for a private room in a nursing home is approximately $131,600 per year, based on current median monthly pricing (2025).
Projected Future Costs
 
As care costs continue to rise, your clients’ assets face increasing exposure. Assuming an average three‑year claim and a 3% annual inflation rate, the projected cost of a private room in a nursing home 25 years from now could exceed $240,000 per year, resulting in a total cost of roughly $720,000 over three years.
 
Without preparation, these expenses can quickly derail even well‑structured retirement plans.
 
Planning for Long‑Term Care
 
Given today’s cost environment, planning ahead is more important than ever. In 2024, long‑term care insurance carriers paid tens of billions of dollars in claims, continuing a multi‑year trend of historically high benefit payouts.
 
Yet despite the likelihood of needing care, only about 3% to 4% of Americans age 50 and older currently own long‑term care insurance.
 
Evaluating long‑term care insurance solutions can be a prudent step toward:
  • Preserving retirement assets
  • Providing flexibility in care choices
  • Reducing the financial burden on family members
Contact your LTC Specialist today for assistance with your cases and client planning needs.
 
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DI Covers What Workers’ Comp Doesn’t

Alarmingly, nearly 70% of business owners are not covered under the same Workers’ Comp policy they use for their employees. If they were seriously injured on the job, what would they lean on? Medical Insurance doesn’t cover lost income, and pulling revenue out of the corporation is dicey.

An affordable income protection policy to help your business owner clients protect their income from injury and illness – both on and off the job – is available.

Business Overhead Expense Insurance will reimburse the business owner for all fixed expenses – keeping the doors open while they recover.
 
Every business owner who carries Workers’ Comp Insurance is an opportunity – ask if they have a plan in place for themselves. Already covered? Compare the cost. And remind them that even a striving company may not survive long without a chief executive overseeing operations.
 
Business owners aren’t alone – Federal Employees, Independent Contractors, Private Home Domestic Workers, Farm Owners/ Laborers, Maritime Workers, and Railroad Employees are just some of the other occupations also at risk.
 
Contact your Disability Income Specialist for a case design custom to each of your client’s needs.
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Winning In Overtime With Unneeded Life Policies

“I went to a fight the other night and a hockey game broke out!” The famous one-liner by the late comedian Rodney Dangerfield finds it humorous foundation in the reality that those athletes on skates are resourceful in finding occasion for fist-a-cuffs.
 
But the sport offers a life lesson in making the best of a bad situation. If a team wins a game in regulation it is awarded two points in the standings and the loser gets nothing. But if a game is tied even the team that loses in overtime or a “shootout,” gets one point.

As an insurance advisor don’t miss the opportunity to make the “loss” a client may have in an unneeded policy into a positive transaction.

Example: Your client has a life policy into which he or she has paid $50,000 in premium and has a surrender value of only $10,000. The policy requires too much to maintain or is no longer needed.
 
But rather than tossing in the towel, suggest using the policy loss to earn some tax-free money! Consider:
  • Swap the policy for an annuity in a 1035 exchange.
  • Section 1035 allows for transfer of both the cash value ($10,000) and the old policy tax basis ($50,000) into the new contract.
  • Account values in annuities are taxed only to the extent of gain in the contract, the exchanged-for annuity allows room for $40,000 in growth before there is any potential income taxation on full surrender.
  • Additional premium can be contributed at the time of the exchange allowing for quicker loss recovery (e.g., $20,000 new premium results in an initial policy value of $30,000 and initial tax basis of $70,000 – loss in the policy is not affected!).
A 1035 exchange to an annuity is not without its hoops and details, so contact Tom Virkler, JD – Director of Advanced Markets, at tom@cpsadvancedmarkets.com or 706-614-3796 concerning these and any opportunities for increasing your annuity business.
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Earn CE Credit + Learn ESOPs for Succession Planning 👉 Thursday, May 21

ESOP Planning for Business Owners

Thursday, May 21 – 11.00 AM to 12.00 PM PST

REGISTER NOW

Help business owners plan for the future with confidence and earn a CE credit.

This course gives financial professionals the knowledge and tools to include ESOPs in succession planning conversations. Explore the tax and economic benefits, understand company control after implementation, and master the steps to establish an ESOP.

With this knowledge, you can guide private business owners through a smooth transition and position yourself as a strategic partner for long-term success.

The presentation will include an ESOP overview, reasons to consider an ESOP, cash flow analysis, needs of an ESOP, and establishing a new ESOP.

Questions? Contact Jim Moore, Vice President of Retirement Services, at (949) 225-7145 or jmoore@cpsbenefits.com.

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Top 3 Reasons To Offer Life Insurance With Vitality

Life insurance with Vitality offers a unique blend of life and long-term care insurance and wellness rewards, making it an appealing choice for many. Here are three key reasons to consider:

Incentivizes Healthy Living

The Vitality program rewards policyholders for making healthier lifestyle choices. By tracking activities like exercise, eating nutritious foods, and scheduling regular check-ups, you can earn points that lead to discounts, rewards, and even premium savings. This not only helps improve your health but also gives you tangible benefits for your efforts.

Cost Savings

With John Hancock Vitality, the more you engage in healthy behaviors, the more you can save on your life insurance premiums. By participating in health-related activities, such as walking, running, or getting a fitness check-up, you can lower your premiums over time, making it an affordable choice for many policyholders.

Comprehensive Coverage

In addition to the wellness benefits, certain contracts offers robust life insurance coverage options that include optional long term care and critical illness benefits. With flexible coverage amounts and customizable riders, policyholders can tailor their plans to suit their needs, ensuring peace of mind for themselves and their loved ones.

Overall, John Hancock with Vitality combines financial protection with motivation for a healthier lifestyle, offering unique rewards for those who prioritize their health.

Contact your Life Sales Rep today!

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Underwriting Diabetes

Let’s talk about Diabetes. This is a chronic condition associated with high levels of glucose (sugar) in the blood. Insulin hormone produced in the pancreas helps to turn glucose from the food we eat into energy.
When the body doesn’t produce enough insulin or doesn’t effectively use the insulin produced, it increases the amount of sugar in the blood and can lead to diabetes.
 
Types of diabetes:
  • Type 2: Occurs when the body is resistant to insulin and cannot effectively use the insulin it produces. This is the most common form of diabetes.
  • Type 1: Occurs when the body produces little to no insulin. This is an autoimmune type of diabetes and generally diagnosed early in life. Latent diabetes in adults is a slow-progressing form of autoimmune diabetes.
  • Pre-Diabetes: Also referred to as impaired fasting glucose and impaired glucose tolerance, this occurs when glucose levels are higher than normal but still below the level for a diabetes diagnosis.
  • Gestational Diabetes: Occurs during pregnancy and generally resolves after delivery. Women with gestational diabetes have an increased chance of developing Type 2 diabetes later in life.
A1c blood testing (average blood sugar) is key in determining severity when diagnosed as well as ongoing level of diabetic control.
 
Complications from diabetes can include neuropathy (nerve damage), kidney disease, retinopathy (vision problems caused by damage to the retina), stroke and cardiovascular disease.
 
Now let’s talk about some potential underwriting outcomes for Life coverage.
  • Type 2 diabetes may qualify at a Standard rate class with good diabetic control and no complications.
  • Type 1 diabetes could be as good as Table 2 for over age 50 in a best case scenario. Higher table ratings would apply for ages 50 and under depending on diabetic control and any complications.
  • Pre-diabetes and gestational diabetes may qualify at Standard Plus.
Contact our Underwriting Team for help in pre-screening your client living with diabetes.

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