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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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Your Clients Aren’t Average – Why Is Their Long-Term Care?

Some carriers like to claim that your clients don’t need Long-Term Care (LTC) protection beyond the average length of a care need. But preparing for only the average length of a care need can leave a large gap.
 
The Story of Averages
 
The average length of an LTC need is typically longer for women than men (3.7 years vs 2.2 years). However, in a survey of leading long-term care insurers, that story of averages doesn’t hold up.
 
With five of the seven carriers, men met or exceeded the length of claim for women, with each exceeding a million dollars! Planning for the average would’ve only covered a fraction of the cost.

The belief that average lengths of care are sufficient could create one of the most devastating financial decisions in life.

Addressing only the average care need excludes the possibility of a life-long diagnosis like Alzheimer’s or Parkinson’s. Lifetime protection is the only way to ensure that every client has exactly the amount of protection that they need, whether it’s for two months, two years, 20 years or more.
 
Your clients aren’t average, and their LTC protection shouldn’t be either. Contact us to learn more about Continuation of Benefits options, including Lifetime, to help your clients be protected against costly LTC needs.
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Have You Heard About The M.U.G. Plan?

The M.U.G. plan is a new innovative Disability Insurance sales concept that helps provide your clients with funds in the event they become disabled.

This simple approach will help open doors to new opportunities and possibly allow you to up-sell to clients who need more coverage.

The M.U.G. plan is designed to cover:
  • Mortgages
  • Utilities
  • Groceries
This policy is designed to be more affordable than a comprehensive coverage policy and still provide income to help pay for a clients mortgage, utilities and groceries if they are unable to work due to a disability.
 
The M.U.G. plan helps eliminate client confusion regarding how much insurance coverage is actually needed. Simply ask your client how much do you spend each month on your mortgage, utilities and groceries?
 
To learn more about the M.U.G. plan and how to approach your clients about Disability Income Insurance contact your Disability Income Insurance Specialist today.
 
Download the customizable marketing flyer for the M.U.G. plan below.
 
Return the completed flyer to your Marketing Representative for a meaningful recommendation of protection for your clients.
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Unlock 9%: New Standard in Guaranteed Income Starts Here 💸 Thursday, August 28th

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With U.S. markets at all-time highs, many clients value competitive, guaranteed fixed rates with flexibility to reallocate to index strategies long term.

This carrier is now offering a high first-year fixed rate, up to 9%, that’s ideal for clients seeking:
  • Income Soon: Get a guaranteed increase to the benefit base in year one, then take a higher lifetime income benefit in year two
  • Short-Term Market Risk Mitigation: Secure a compelling fixed rate for the first year with flexibility to reallocate at future anniversaries
In addition to the strong year 1 fixed strategy this carrier also offers:

✅ Up to 8.50% payouts guaranteed for life with no reductions for joint life
✅ Fast activation – income can start in just 30 days
✅ Guaranteed Cap rates – locked in for the full contract term
✅ Proven renewal history – strong carrier track record
✅ 2025 commission boosts – starting at just $1M!

Please join us to learn how to offer your clients top-of-market guaranteed early income with strong guaranteed rates.

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

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Term Insurance: Examining The Conversion Options

By the end of the story the pigs have begun to walk upright and they carry whips. Promised improvement in conditions for other citizens have been forgotten. And the Seven Commandments that were to serve as the foundation for the common democracy have been reduced to just one: “All animals are equal, but some animals are more equal than others.” So ends George Orwell’s sobering classic novel, Animal Farm.
 
One danger of advanced technology in the insurance industry has been the “commodity mentality”.
 
Created by the ease and prevalence of spread-sheeting the premiums for any of a broad array of available term products as a starting point for a choice of carrier. Unfortunately the numbers generated are too often the end point as well. It becomes “all about cost” and an agent will recommend Texas Life and Limb because the coverage is a nickel cheaper a month.
 
But a wise advisor looking beneath the price tags will find that, similar cost notwithstanding, some term products are more equal than others.
 
The most important feature of any term policy is the conversion option.
 
The privilege of exchanging the policy for the carrier’s permanent product at the original medical classification without new underwriting. An insured may come to the end of the guaranteed level premium period only to find that he or she has a need for, at least some of, the coverage going forward.
 
There are three options:
  1. Pay the onerous and rapidly accelerating one-year term rates, or
  2. if still in good health, shop for the best price on permanent coverage, or
  3. if there have been health incidents during the level premium period, exercise the right of conversion under the existing contract – and the terms and conditions of that conversion option are where the thrill of a lower cost can be quickly forgotten.
Consider:
  • What permanent products are available for conversion? The most generous carriers allow for conversion to any permanent product in the portfolio at the time the option is exercised. Other carriers restrict the choice to certain contracts now, which may or may not be available later.
  • What is the likelihood that available products will be competitive? Consider term insurance with a carrier that has a reputation for and exhibits a likelihood for future generation of competitive permanent products.
  • How long into the life of the term product is the conversion privilege available? Some policies allow conversion for the full level premium period. Some only to a certain age. Some only for a set number of years, even if less than the level premium period.
  • How much flexibility is there in the amount and segmentation of conversion elections? Can only part of the coverage be converted? Can it be converted in stages?
Nothing will de-commoditize an advisor’s approach to term more quickly than a close examination of the conditions of the policy’s conversion privilege. For assistance in making the best term choice for your client’s situation, all factors considered, contact your Life Sales Representative.
 
Lest readers think that all scary characters in literature are equal, AbeBooks.com conducted a worldwide poll to determine the scariest. The winner was Big Brother, from George Orwell’s other famous dystopic novel, 1984, edging out Hannibal Lecter from the pen of author Thomas Harris.
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The Shocking Truth About The Average American Household

Losing a loved one can be devastating to a family, both emotionally and financially. While it is almost impossible to prepare for the emotional challenge of death, it is much easier to prepare for the financial challenge when adequate life insurance coverage is in place.

More than half of Americans believed that they would feel the financial impact from the loss of the primary wage earner within six months.

This doesn’t just speak to households where there is no existing life insurance coverage in place.
 
Consider:
 
Over one quarter of consumers who already own life insurance feel that they do not have an adequate amount of coverage.
 
As life insurance agents, staying in regular contact with existing clients helps to ensure that the amount of coverage in place is commensurate with changes in their lifestyles.
 
Many life events such as marriage, divorce, the birth of a child, changes in employment or the purchase of property will trigger a change in the insured’s need for life insurance coverage. When your clients are going through these experiences, their life insurance coverage is often not at the front of their mind.
 
We have tools available for your immediate use to simplify the regular review of your clients’ existing coverage, including customized kits for both you and your clients!
 
Call your Life Sales Rep today to learn more about the resources available.
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Key To Success: Answer Your Underwriter’s Questions Before They Ask

If you were an underwriter and received the following application on your desk, what questions would you have?
 
  • Female, age 35
  • Noted to be retired with no annual income; Net worth left blank on the app
  • Seeking $8 million of term coverage; Purpose of coverage left blank on the app
I know you’d be scratching your head wondering why is this woman retired at such a young age and why is she looking for $8 million of coverage?
 
What the producer forgot was a good cover letter explaining the purpose of the coverage. This client just inherited a very large estate and recently quit her job. Estate taxes were a concern. Based on the inheritance, the $8 million applied for was justified.
 
How can we help in this situation?
We are here to provide our expertise when it comes to writing good cover letters. We can even write them for you. We will help explain the purpose of your applications to our carrier underwriters.
 
However, the most important source of information about a proposed insured is you, so we’ll need your help to prove your applications are financially justified.
 
Key information we’ll need includes:
  • What is the purpose of the insurance?
  • How was the face amount determined?
  • Who will be the policyowner and premium payor?
  • What is the current amount of in-force and applied for insurance?
  • Do you have any other pertinent documentation you can provide to explain how the amount of insurance was determined?
Give us the opportunity to help you move your applications smoothly through underwriting. If we answer our underwriters questions before they ask them, who knows?
 
Quicker approvals leading to faster receipt of commissions – then we move on to your next big app waiting to happen.
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Making The Case For Private LTC Insurance

As baby boomers enter their retirement years, many mistakenly assume government programs will meet their future Long-Term Care (LTC) needs. But both Medicare and Medicaid have limitations and may undergo significant changes in the face of the growing federal deficit.

Now is the time to start having conversations with your clients about LTC planning, the risk of depending on government programs, and how those programs differ from private LTC insurance.

This educational approach will help position you as a valuable resource for your prospective clients.
 
Resources for Long-Term Care:
  • Medicare, like most health insurance, is primarily meant to cover acute illnesses. It does pay for some LTC expenses, but there are significant limitations, and you must be age 65 to qualify. Some benefits are payable for the first 100 days per benefit period in a skilled nursing facility, if you enter within 30 days after a hospitalization of at least three days, and if you are receiving skilled care and continue to get better. Medicare does not cover custodial care — help with the activities of daily living that a person could need for years.
  • Medicaid is a joint federal and state insurance program that pays a large portion of the nation’s LTC expenses. Most state laws require that you spend down your assets before you become eligible for benefits, and may limit the options as to where and what kind of care you can receive. Some states have proposed revisions to Medicaid that could further limit eligibility in the future.
  • Private LTC Insurance is a more dependable option and provides benefits for care in a variety of settings, including the familiar surroundings of home. You can assist your clients in taking responsibility to help secure their future by designing an LTC Insurance plan that will fit their specific needs and budget. That way, they can feel confident they will get the care they need without worrying if they will need to rely on a government program to pay for it.
Did You Know? Your social security statement says, “Medicare does not pay for Long-Term Care, so you may want to consider options for private insurance.”
 
Contact your LTC Sales Associate today for more information and resources.
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Don’t Wait To Hear From Your Clients About Disability Protection

As a Financial Professional, you have an incredible opportunity with clients, friends, and acquaintances that you interact with on a daily basis – they are all in need of an Income Protection Plan.

Bankers, Pharmacists, Dentists, Veterinarians, Grocery Clerks, Doctors, Real Estate Agents, Accountants, Restaurant Owners, Attorneys, Faith Leaders… these are just some of the people you may bump into on any given day.  What do they all have in common?  They all work hard to earn an income to provide for themselves and their families.  

Yet the thought of incurring a sickness or having an accident that would prevent them from working and earning a valuable income often goes overlooked.  You can help.  Simply ask them one question, “Do you have a plan if you get sick or hurt and couldn’t work?”  Then let them know you have an affordable strategy that would help take care of their living expenses should something happen.

Don’t wait to get the call from one of your long-term clients or close friends stating they have been in an accident or have gotten sick and they can no longer work – when you could have had the discussion with them about a Disability Income Protection Plan.  

The financial strain on a family dealing with a long-term illness or recovery from an accident can be financially catastrophic.

Even if you have already had an income protection discussion with your clients in the past and even if they had a plan through work or had an individual plan in place, still ask the question.  They may have changed jobs since you last spoke or let their individual coverage go during our economic downturn. There may be an opportunity now that did not exist in the past.

The best time to contact your clients, friends and acquaintances is right now!

Statistically, the odds are 1 in 4 workers entering the workforce will incur an illness or injury that would prevent them from working for 90 days or longer before they retire.

My experience has shown that people proactively seeking to buy Disability Income protection usually, but not always, already have some kind of a health concern that makes applying for protection more difficult.  Their policy could be issued with limited benefits or some kind of an exclusion for a pre-existing condition.  They could even be declined for the coverage depending on the severity of their health history.

Reach out to your clients while they are still healthy – their rates will never be lower than they are right now.  Recent innovations in the Disability Income market have made it more affordable than ever to secure the coverage your clients need to live their regular lifestyle during the recovery from an illness or injury.  Disability Insurance allows individuals time to focus on their recovery process rather than worrying about the financial strain that comes with not receiving a regular paycheck while still having bills to pay.

Don’t waste time with the prospects who “just don’t get it”.  You will find that there are many people out there that do “get it” and want to learn more.

We have a dedicated Disability Income Team to support your Disability Income marketing efforts; and offer innovative tools you can use to help get the word out to your clients that you are in the Income Protection Business.  We can provide you with the guidance you need to find each of your clients the best plan the industry has to offer.

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Insuring Key Signal-Callers

Why is it good to have a runner on second base? Two reasons: first, he’s in “scoring position” where a well-placed single will drive him home; and second, he can see the signals the catcher is giving the pitcher and pass them on to the batter. In this subtle game of refined skills, anticipating the correct pitch turns even a mediocre hitter into Ty Cobb on the next throw to the plate.
 
The savvy fan is aware of the importance of the ongoing flurry of signals that continually circulate the field as players communicate information, strategies and intentions. He or she is also aware that most originate somewhere in the dugout from one of several players or coaches, all making gestures to confuse and mislead the opponent as to their source.
 
And so it is, sometimes, with businesses whose success is often, in part, because of influence and input from people on the sidelines not involved in the day-to-day activity of the business. Let’s call them key directors.
 
Consider this:
 
Sometimes a position on the Board of a company is an honorary thing, much like sitting in the celebrity box for the Macy’s Thanksgiving Day Parade. More often it entails involvement in decisions and policies whose resolution and implementation require a level of street-smarts and industry background.
 
But, sometimes a director’s input is so impactful that the untimely loss of his or her services could have an adverse economic impact on the business. A little company-owned coverage on such a director might seem wise and in order.

The problem is that carriers don’t traditionally recognize the importance of these off-field signal-callers for purposes of financially justifying any coverage applied for by the business.

But, as always, there is a crack in the door that affords an opportunity if a good case is made.
 
Even if convinced of a director’s unusually disproportionate importance, two things works against a carrier’s standard criteria for granting key person coverage: 1) the director is not an employee and 2) the director has little or no compensation on which to apply the “ten-times annual compensation formula”, employment status notwithstanding.
 
In a recent case we experienced success in getting a carrier to consider modest amounts of coverage ($250,000) on directors where their contributions to the economic well-being of the company was adequately demonstrated, and where they were paid a respectable modicum of compensation ($2,000 a year and $1,000 per meeting), and the company was taking steps to insure its traditionally-defined key people using the standard coverage guidelines. The success on this small matter has allowed the agent to begin personal planning for two of the key people.
 
Back to baseball. So potentially beneficial is the knowledge of a rival’s signals that teams have been known to put a mole in the centerfield bleachers with binoculars to monitor the opposing catcher’s instructions to the pitcher. Recently the FBI has shown interest in investigating allegations of hacking the data bases of opposing teams for information. Oh my! What happened to the good old days when a strategy of success was as simple as Honus Wagner’s remark, “I just hit ‘um where they ain’t?”
 
Contact us with questions or for information on all your key person opportunities, especially those outside the common case parameters – at 706-614-3796 or tom@cpsadvancedmarkets.com.
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Help Protect Your Client’s Income With Linked Benefit Life Insurance

Do you have a client who would like to purchase a Disability Income policy but face the difficulty of qualifying due to the nature of their profession? Perhaps their reported income is low and the amount of benefit available is insufficient.
 
A DI alternative through a Linked Benefit Life Insurance policy.
 
Today, many carriers are offering linked benefit products which allow your clients to access a percentage of their policy’s death benefit in order to cover their Long-Term Care (LTC) expenses.
 
Typically, in order to qualify for this acceleration of benefit, the client will need to have lost the ability to perform two of the six Activities of Daily Living (ADL’s) which include eating, bathing, dressing, toileting, transferring and maintaining continence. Odds are that if you could satisfy the parameters to go on disability claim then you could also satisfy these parameters to exercise your LTC benefit.
 
The benefit is not based on earnings and there is no income verification needed.
 
This product qualifies your client only on their health, not on their occupation. As a result, you can offer a linked benefit plan to any of your clients who could qualify for a typical Life Insurance policy. There are numerous products that offer this LTC rider.
 
Whether your client is interested in a guaranteed death benefit, building cash value or a combination of both, there is a product available that can provide a monthly benefit in the event that your client is unable to perform two ADL’s and cannot earn their income.
 
Call your dedicated Life Marketing Specialist if you have a client to consider or if you would like to learn more about how linked benefit life products work.

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